EverCommerce (EVCM): Valuation Insights Following Strategic Sale of EverConnect and AI-Focused Pivot

EverCommerce (EVCM) is making headlines after announcing the sale of its Marketing Technology solutions, EverConnect, to Ignite Visibility. This move marks a strategic pivot as the company sharpens its focus on AI-powered software.

See our latest analysis for EverCommerce.

After making headlines with the EverConnect divestiture, EverCommerce’s share price has gained momentum, showing a 14% return over the past three months and a steady 5% total shareholder return over the past year. The company’s longer-term track record is even stronger, with a 45% total shareholder return over three years. This signals that investor confidence is building as EverCommerce focuses on its core software strategy.

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But with shares gaining and the company trading just below analyst targets, is EverCommerce still undervalued after its strategic pivot, or is the market already reflecting expectations for future growth?

Most Popular Narrative: 7.8% Undervalued

EverCommerce’s most tracked narrative puts its fair value at $12.39 per share, which stands above the current market price of $11.42. This setup signals growing optimism about future earnings momentum and margin expansion, drawing attention to the catalysts driving the valuation call.

AI-driven efficiency gains, strategic divestitures, and margin initiatives are driving improved profitability, cash flow, and an enhanced long-term growth outlook. The divestiture of the lower-growth Marketing Technology segment and the subsequent focus on core verticals (EverPro, EverHealth, EverWell) has increased operational clarity and reduced seasonality. This sets the stage for improved profitability and more predictable, linear revenue patterns.

Read the complete narrative.

Curious how this fair value was calculated? The core assumption is that EverCommerce’s profit margins and earnings growth rate are set to climb, backed by major operational shifts. The most surprising variable might be the company’s anticipated transformation of its profit engine. Want the inside details? Find out what else is fueling the higher valuation target and what numbers underpin this bullish momentum.

Result: Fair Value of $12.39 (UNDERVALUED)

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

However, risks remain if EverCommerce fails to sustain product innovation or if its focus on core verticals leaves the company vulnerable to unexpected sector downturns.

Find out about the key risks to this EverCommerce narrative.

Another View: Multiples Tell a Different Story

A different approach to valuing EverCommerce looks at its price-to-sales ratio, which comes in at 2.9x. This is much lower than both the peer average of 4.9x and the US Software industry’s 5.3x. However, it is still above the fair ratio of 2.4x, suggesting there is some downside risk if the market reassesses growth prospects. Could the shares re-rate further, or is caution justified here?

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

Build Your Own EverCommerce Narrative

If you see things differently or want to dig into the fundamentals yourself, creating your own narrative is simple and takes under three minutes. Do it your way.

A great starting point for your EverCommerce research is our analysis highlighting 3 key rewards and 1 important warning sign 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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