EverCommerce (EVCM): Assessing Valuation After Fundbox Collaboration Expands Financial Services for Small Business Clients

EverCommerce (EVCM) just made a new move that is catching the eye of anyone holding or considering its stock. The company’s EverPro business unit has teamed up with Fundbox to integrate direct access to business funding into the very platforms small contractors and home service businesses already use for managing invoices, payments, and projects. With over 350,000 businesses using EverPro’s brands such as Joist and Invoice Simple, the partnership significantly expands EverCommerce’s value proposition by embedding financial solutions exactly where customers need them. For investors, this delivers not just convenience for customers but also potentially deeper user engagement and more retention across EverCommerce’s ecosystem.

Looking at the bigger picture, EverCommerce’s stock has gained momentum this year, with the share price up 11% over the past year and more than 25% higher in the past 3 months. While its annual revenue growth dipped slightly, the company posted a sharp improvement in net income, suggesting both challenges and new efficiencies. Prior moves in the business, such as rolling out new features in software and expanding digital services, have grown its potential footprint. The Fundbox integration marks a clear shift toward embedding greater value for clients.

The question facing investors now is whether the stock is undervalued in light of this expanded service offering or if today’s price already reflects the market’s expectations for future growth. Is there real upside, or is everything already factored in?

Most Popular Narrative: 1.6% Undervalued

According to the most widely followed narrative, EverCommerce is currently trading just below its estimated fair value, suggesting a modest upside potential for investors paying close attention to long-term fundamentals.

Ongoing investments in embedded payment processing, cross-sell, and multiproduct utilization (with 32% YoY growth enabling customers to more than one solution) are expanding average revenue per user and enhancing net retention, translating to greater revenue visibility and sustained top-line growth.

Ready to discover what powers this subtle undervaluation? The key drivers behind the analyst view may surprise you. Ambitious improvements in profitability, bold assumptions for the next few years, and a high-stakes future earnings target are at the center of it all. What makes this narrative tick, and which numbers could change everything? The full narrative holds the answers. Will you be ahead of the curve, or left behind?

Result: Fair Value of $12.05 (UNDERVALUED)

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

However, if core software markets mature too quickly or if ongoing cost-cutting results in weaker innovation, the valuation narrative could quickly lose momentum.

Find out about the key risks to this EverCommerce narrative.

Another View: DCF Model Perspective

Taking a different angle, our SWS DCF model also finds EverCommerce undervalued, which reinforces the case from the earlier fair value estimate. However, can a cash flow model truly capture the dynamic shifts in software markets?

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 EverCommerce 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 EverCommerce Narrative

If you see things differently or would rather chart your own course, you can shape your own perspective on EverCommerce 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 EverCommerce.

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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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