Enova International (ENVA): Assessing Valuation After Recent Momentum in Share Price

Enova International (ENVA) has continued to attract attention following a steady run in its share price over the past month. Investors are weighing the stock’s recent performance along with broader market movements in the diversified financials sector.

See our latest analysis for Enova International.

Enova International has been picking up steam. After a strong week that saw a 14.5% jump in share price, momentum appears to be building for the stock. Over the past year, shareholders have seen a total return of nearly 46%, underscoring sustained growth and renewed investor confidence despite only modest gains earlier in the month.

If you’re curious about what else could be gaining traction lately, it’s worth expanding your perspective with a look at fast growing stocks with high insider ownership.

With robust returns and rising momentum, the question now is whether Enova International’s current share price already factors in its future growth or if investors are looking at an attractive entry point.

Most Popular Narrative: 9.1% Undervalued

Enova International's recent close of $124.70 sits well below the consensus fair value estimate of $137.25, highlighting notable upside potential if narrative projections prove accurate. With new analyst commentary raising the target, the narrative now centers around sustained revenue acceleration and disciplined cost controls fueling earnings growth.

Enova's digital lending platform, AI-driven risk management, and disciplined cost controls drive strong growth, operating leverage, and superior profitability across consumer and small business segments. Industry shifts toward online financial products and market consolidation increase Enova's customer base and support continued above-average revenue and earnings growth.

Read the complete narrative.

Curious what specific metrics are powering analysts' bullishness? Beneath the headline, there is a blend of growth forecasts and profit assumptions not previously seen for this company. Discover which bold financial scenarios analysts are betting on by reading the full narrative for the revealing details behind the fair value estimate.

Result: Fair Value of $137.25 (UNDERVALUED)

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

However, shifting regulations or an economic downturn could quickly change Enova's outlook and potentially test the resilience that is currently reflected in expectations.

Find out about the key risks to this Enova International narrative.

Another View: Discounted Cash Flow Models Raise Doubts

While the analyst consensus points to Enova International being undervalued, our DCF model suggests otherwise. At $124.70, the stock is trading significantly above the SWS DCF fair value estimate of $73.52. This implies the market may be factoring in much higher growth or profitability than the numbers currently support. Which method more accurately captures Enova’s true potential?

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 Enova International 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 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 Enova International Narrative

If you want to dig deeper, nothing stops you from reviewing the numbers for yourself and building a different view. Create your own in just a few minutes with Do it your way.

A great starting point for your Enova International research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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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.

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