SEI Investments (SEIC): Exploring Valuation Following Recent Share Price Decline

SEI Investments (SEIC) has been on investors' radar lately, trading at around $80.04 per share. With shares down 11% over the past 3 months, some are eyeing the current valuation for potential opportunities or risks.

See our latest analysis for SEI Investments.

After a drop over the last quarter, SEI Investments is still holding on to a 0.2% total shareholder return for the past year and a solid 53.8% five-year total return. The recent share price slide suggests fading momentum but does not erase its longer-term track record of growth.

If you are weighing what else the market might offer, it could be the perfect moment to broaden your perspective and discover fast growing stocks with high insider ownership

With shares trading below analyst price targets and a consistent track record of profitability, the key question remains: is SEI Investments undervalued at these levels, or is the market accurately pricing in its future prospects?

Most Popular Narrative: 16.6% Undervalued

SEI Investments' narrative fair value sits at $96, while the latest share price is $80.04. This gap points to a valuation disconnect that has investors paying close attention to future drivers.

SEI's continued and proactive investment in modern technology platforms, targeting scalability, automation, and cost efficiency, positions the company to capitalize on increasing demand for digital transformation and outsourcing within financial services. This is likely to drive sustained top-line revenue growth and improve long-term operating margins.

Read the complete narrative.

What numbers are behind this bold price target? The fair value leans heavily on aggressive margin expansion, higher revenue streams, and profit multiples not seen with most peers. Are you curious whether these optimistic projections can hold? This narrative reveals exactly where consensus expects the company to outperform, and what could power a sharp re-rating if all goes according to plan.

Result: Fair Value of $96 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, continued pressure on profit margins and slower than expected client acquisitions could threaten the company's ability to hit long-term growth targets.

Find out about the key risks to this SEI Investments narrative.

Another View: Discounted Cash Flow Signals Caution

While the consensus thinks SEI Investments looks undervalued, our DCF model presents a different perspective: the shares are currently trading above an estimate of fair value. This difference highlights how sensitive results are to the assumptions behind each approach. Which scenario do you trust more?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out SEI Investments for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 917 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own SEI Investments Narrative

If you have a different opinion or enjoy digging into the numbers yourself, you can easily craft your own narrative in just a few minutes with Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding SEI Investments.

Looking for More Smart Investment Ideas?

Don't let great opportunities pass you by. Take the next step and see what the market has to offer with these carefully selected stock ideas designed to give you an edge.

• Unearth growth potential by reviewing these 917 undervalued stocks based on cash flows, which are currently trading below their intrinsic value and may be positioned for a strong rebound.
• Target reliable returns by checking out these 17 dividend stocks with yields > 3%, featuring high yields that stand out for stability and consistent performance.
• Position yourself at the intersection of technology and healthcare with these 30 healthcare AI stocks, where innovation is fueling new breakthroughs and investment opportunities.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com