Evercore (EVR): A Fresh Look at Valuation Following Strong Q3 Earnings Growth

Evercore (EVR) delivered a strong third quarter earnings report, with year-over-year increases in revenue and net income. For investors, these results provide fresh reason to examine where the stock might go next.

See our latest analysis for Evercore.

Evercore’s standout third quarter earnings appear to have energized sentiment, helping the stock rebound from a soft October and push higher in recent days. The latest 1.21% one-day and 4.07% seven-day share price returns point to gathering momentum after strong fundamentals. The year-to-date share price return of 11% and a three-year total shareholder return approaching 180% reinforce its longer-term outperformance. At the same time, the past year’s total return has stayed flat, reminding investors that growth can sometimes pause before another upward leg.

If the latest surge in Evercore piques your curiosity, now is a smart moment to broaden your search and discover fast growing stocks with high insider ownership

After such a strong recent run, investors are left wondering whether Evercore’s shares remain attractively valued or if the market has already priced in the company’s renewed growth, leaving little room for further upside.

Most Popular Narrative: 13.9% Undervalued

With the most followed narrative estimating Evercore’s fair value at $355.88, the current share price of $306.54 offers intriguing upside potential and raises the stakes for where the company could head next.

The ongoing globalization of capital markets and an accelerating trend in cross-border M&A activity are providing an increasingly fertile environment for independent, conflict-free advisors like Evercore. The firm's continued expansion into key international markets, as evidenced by new offices and hiring in EMEA (France, Spain, Italy, Dubai, UK), positions it to capture an increasing share of growing advisory fee pools and drive top-line revenue over the long term.

Read the complete narrative.

Curious what underpins this bold price target? The fair value rests on forward-looking assumptions about Evercore's future growth path, with forecasts and financial levers that might surprise even seasoned investors. See which aggressive estimates drove analysts to this valuation.

Result: Fair Value of $355.88 (UNDERVALUED)

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

However, rising compensation expenses and the possibility of slower global deal volume could quickly undermine the bullish outlook and challenge current valuation assumptions.

Find out about the key risks to this Evercore narrative.

Another View: Multiple-Based Valuation

Our multiple-based approach paints a more cautious picture. Evercore’s current price-to-earnings ratio of 22.4 times is slightly below the industry’s 24.1 times, pointing to some value relative to peers. However, compared to its fair ratio of just 16.5 times, the stock is still expensive. This suggests investors may be paying extra for recent momentum. Will future growth deliver enough to justify it?

See what the numbers say about this price — find out in our valuation breakdown.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Evercore 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 876 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 Evercore Narrative

If you have a different view or want to dig into the numbers yourself, you can quickly craft your own take using our tools in just a few minutes. Do it your way

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

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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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