eXp World Holdings (EXPI): Is This Real Estate Tech Stock Trading Below Its True Value?

eXp World Holdings (EXPI) has seen some volatility lately, with its stock fluctuating despite a recent uptick. Investors may be watching for clues about the company’s performance and the factors influencing its current valuation.

See our latest analysis for eXp World Holdings.

Over the past year, eXp World Holdings’ share price has been volatile. Momentum is showing signs of fading as the 1-year total shareholder return is down nearly 19 percent, even though recent price moves have been more muted. Short-term swings have not reversed this longer-term downtrend, so the stock’s overall performance continues to reflect shifting expectations around its growth and risk profile.

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With shares lagging over the past year but some signs of stabilization, the question for investors is whether eXp World Holdings is trading below its true value or if the market has already accounted for future prospects. Is there still a buying opportunity, or is everything priced in?

Most Popular Narrative: 10.5% Undervalued

At a last close price of $10.74, the consensus narrative puts fair value at $12.00, suggesting room for upside if those projections play out. The narrative’s fair value uses a discount rate of 8.3% and reflects expectations for both business growth and structural industry change.

Accelerating global expansion supported by a scalable cloud-based platform is allowing eXp to rapidly launch into new markets (Peru, Turkey, Ecuador, Japan, South Korea) and capture productive agents quickly. This increases potential transaction fees and top-line revenue in tandem with the ongoing digitalization of commerce and work.

Read the complete narrative.

Curious what financial leaps and digital strategies are fueling this double-digit valuation gap? The secret lies in some bold growth forecasts, margin expansion assumptions, and a future earnings multiple so high it will leave you wondering how the numbers could add up. Go inside the full narrative and see why the consensus is betting big on eXp's transformation.

Result: Fair Value of $12.00 (UNDERVALUED)

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

However, rapid advances in real estate technology and shifts in commissions or homebuyer demand could disrupt eXp’s growth story and challenge bullish projections.

Find out about the key risks to this eXp World Holdings narrative.

Another View: What Does the DCF Model Say?

While the consensus view sees eXp World Holdings as undervalued based on future growth expectations and current price-to-sales levels, our SWS DCF model takes a more cautious stance. According to its cash flow projections, EXPI is actually trading above fair value right now. Is the market too optimistic about future earnings, or is the DCF model missing something in eXp’s story?

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 eXp World Holdings 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 eXp World Holdings Narrative

If you like to dig deeper or have your own take on what the numbers mean, you can craft a unique view in under three minutes. Do it your way.

A great starting point for your eXp World Holdings research is our analysis highlighting 2 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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