Assessing Braze (BRZE) Valuation as Investor Optimism Grows After Recent 90-Day Share Price Uptick

Braze (BRZE) stock has attracted interest as investors review its recent performance in the software sector. Shares have seen moderate movement over the past month, which gives traders reason to take a closer look at underlying results.

See our latest analysis for Braze.

Braze’s share price has had its ups and downs. While the stock is off 37% year-to-date, a recent 90-day share price return of 7.6% hints at some renewed investor optimism. Over the past year, however, total shareholder return remains negative and suggests sentiment is still recovering from earlier declines.

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That brings us to the key question for investors: does Braze represent an undervalued software opportunity at current levels, or is the market already factoring in prospects for renewed growth?

Most Popular Narrative: 39.6% Undervalued

Braze's most closely followed narrative points to a fair value far above the current stock price. As share price lags behind, narrative bulls see massive potential for upside if execution holds.

Braze's acquisition of OfferFit is expected to enhance AI-driven optimization capabilities and lead to revenue growth through deal size expansion and differentiation in the market. This investment should drive better earnings and net margins as OfferFit's sophisticated AI solutions integrate into Braze's platform.

Read the complete narrative.

Want to know what’s fueling this optimism? The narrative is banking on relentless expansion, next-level margins, and a multiple that eclipses what most rivals could dream of. Eager to uncover the ambitious assumptions shaping this price target? The real drivers might surprise you. See exactly what stands behind Braze’s bold valuation projection.

Result: Fair Value of $45.11 (UNDERVALUED)

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

However, challenges such as delays integrating OfferFit’s technology or changes to data regulations could impact Braze’s margin goals and growth plans.

Find out about the key risks to this Braze narrative.

Another View: SWS DCF Model Puts the Brakes On

While the analyst consensus sets a high target, the SWS DCF model approaches the numbers more conservatively. According to our DCF approach, Braze is trading slightly above its fair value estimate of $25.59. This suggests there may be less upside than the multiple-based narrative indicates, raising questions about which forecast will prove more reliable as growth develops.

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 Braze 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 861 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 Braze Narrative

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

A great starting point for your Braze 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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