Is Veeva Systems Fairly Priced After 35% Surge and Strong Cloud Growth in 2025?

Thinking about what to do with Veeva Systems stock right now? You’re not alone. With cloud-based solutions that have become indispensable for the life sciences industry, Veeva’s recent moves have caught the attention of both long-term believers and wary newcomers. Over the past year, shares have jumped an impressive 34.9%, and if you zoom out to year-to-date, that growth balloons to 39.0%. Even more striking, its three-year return sits at 87.3%. These numbers can spark optimism about future upside, but there is nuance beneath the surface, especially with a five-year return barely above flat at 0.7%.

Over the last month, Veeva has eked out a 6.9% gain, building on positive market sentiment around tech and cloud infrastructure. Yet, over the past week, shares slipped 1.9%, a reminder that even resilient growth names face choppy waters as investor risk appetites shift. Some of this volatility is tied to sector-wide moves rather than anything specific. Looking at the big picture, the stock’s valuation is very much up for debate. Veeva scores just 1 out of 6 on a standard undervaluation check, suggesting most traditional metrics see it as pricey, despite all that growth.

If you’re wondering whether Veeva is simply expensive or quietly undervalued, the answer depends on the valuation lens you use. Next, we’ll walk through several approaches to valuing Veeva and see what the data really says. Stick around, because there is one often-overlooked method of understanding value that could illuminate things even further.

Veeva Systems scores just 1/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Veeva Systems Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow (DCF) model estimates a company’s intrinsic value by projecting its future free cash flows and then discounting those cash flows back to today’s dollars. This process helps investors assess what the business is truly worth compared to its market price.

For Veeva Systems, current Free Cash Flow stands at $1.32 Billion. Analyst estimates for annual FCF growth are available for the next five years, with projections rising from $1.30 Billion in 2026 to $2.37 Billion by 2030. Beyond those years, Simply Wall St extrapolates further, with long-term projections approaching $3.35 Billion by 2035.

Based on the 2 Stage Free Cash Flow to Equity model, Veeva’s estimated intrinsic value per share is $297.12. The DCF suggests the stock is currently trading at a 1.5% discount to this value, indicating it is just slightly undervalued.

The bottom line using this model is that Veeva’s stock price is very close to its projected fair value.

Result: ABOUT RIGHT

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Veeva Systems.

Simply Wall St performs a valuation analysis on every stock in the world every day (check out Veeva Systems's valuation analysis). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes.

Approach 2: Veeva Systems Price vs Earnings

For profitable companies like Veeva Systems, the Price-to-Earnings (PE) ratio is a widely used valuation metric because it relates the company's share price to its bottom-line profits. The PE ratio helps investors gauge how much they are paying for one dollar of earnings, which makes it especially relevant for mature or consistently profitable businesses.

When evaluating what a "normal" or "fair" PE ratio should be, it's important to consider the company's growth prospects and risk profile. Higher earnings growth or lower business risk often justify a higher PE ratio, while lower growth or higher risk typically warrant a lower multiple.

Veeva currently trades at a PE of 59.2x, which is higher than both the Healthcare Services industry average of 38.0x and its listed peer group average of 53.2x. This suggests the market expects superior earnings growth or unique advantages from Veeva compared to its peers. However, it also means investors are paying a premium.

Rather than relying solely on broad averages, Simply Wall St's "Fair Ratio" adjusts for the exact things that matter, including Veeva's growth outlook, profitability, industry dynamics, market capitalization, and specific business risks. This tailored metric places Veeva's Fair PE Ratio at 33.2x, providing a more nuanced sense of what its valuation should be given all those factors.

Comparing the current PE of 59.2x to the Fair Ratio of 33.2x shows that Veeva's stock is trading well above its fair value on this metric alone. This suggests investors are paying up for quality and future growth potential.

Result: OVERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Veeva Systems Narrative

Earlier, we suggested there is a more insightful way to value companies like Veeva Systems, and that’s where Narratives come in. In simple terms, a Narrative is the story behind the numbers—your perspective on a company’s future, translated into financial forecasts and a fair value estimate based on your expectations for revenue, profit margins, and growth drivers. Narratives connect the dots from “what I believe will happen” to a fair value, letting you align your investment decisions with your unique outlook.

On Simply Wall St’s Community page, millions of investors use Narratives to map out their views and see how their assumptions compare to others. Narratives make it easy to see whether, based on your forecasts, Veeva’s current price is above or below your own fair value, helping you decide when to buy or sell. As news and company results are released, Narratives automatically update, so your view always stays relevant.

For example, one Narrative might project rapid AI-driven adoption and industry partnerships, leading to a high fair value of $362 per share. Another might highlight stiff competition and uncertain customer growth, with a more cautious estimate near $222 per share. Narratives allow you to quickly sense check the analysts or craft your own, giving you a personalized, dynamic edge on Veeva’s true worth.

Do you think there's more to the story for Veeva Systems? Create your own Narrative to let the Community know!

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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