A Fresh Look at Intuit's (INTU) Valuation After Strong Revenue and Profit Growth

Intuit (INTU) just delivered its latest quarterly update, and the numbers are getting investor attention. The company posted a 16% jump in full-year revenue with Q4 up by 20%, leaning heavily on the strength of TurboTax Live and Credit Karma. Even with Mailchimp seeing a short-term dip, management sounded upbeat about its prospects bouncing back next year. For anyone tracking the stock, this kind of steady expansion and improving profitability keeps the spotlight on what Intuit could do next and whether its recent run has more potential.

Backing up the headline results, Intuit’s shares have moved up 8% over the past year, with some volatility along the way. After strong multi-year gains, momentum has cooled more recently as the stock dipped around 10% over the past month and 12% in the past three months. With annual revenue and net income both growing at double-digit rates, investors are considering both the company’s growth engine and whether market mood swings still present opportunity.

Are investors looking at an undervalued growth story, or is the market already pricing in everything that lies ahead for Intuit?

Most Popular Narrative: 18% Undervalued

The current narrative suggests that Intuit is trading well below its estimated fair value. Expectations of robust multi-year growth and expanding market opportunities fuel the bullish outlook.

The accelerating adoption of Intuit's AI-driven all-in-one platform, including virtual teams of AI agents and human experts, positions the company to consolidate customers' tech stacks, drive automation of workflows, and unlock substantial ROI for customers. This supports higher average revenue per customer (ARPC) and net margin expansion over time.

What is energizing this undervalued call? It comes down to ambitious long-term projections for Intuit's core business and a powerful set of financial assumptions. The real surprise is that analysts are betting on expansion rates and profitability figures usually reserved for industry giants. Can you guess what numbers drive this high fair value? Continue reading to dive into the full breakdown of growth catalysts and bold financial forecasts.

Result: Fair Value of $819.73 (UNDERVALUED)

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

However, Mailchimp's sluggish growth and potential international saturation could challenge Intuit's outlook if improvements falter or customer expansion slows.

Find out about the key risks to this Intuit narrative.

Another View: What Do Profit Multiples Say?

Looking through a different lens, Intuit’s valuation based on earnings looks less compelling. Compared to industry averages, the current share price appears on the expensive side. Does this cast doubt on long-term upside, or is growth still the bigger story?

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

Stay updated when valuation signals shift by adding Intuit to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Intuit Narrative

If you see things differently or want to dig deeper into Intuit's numbers, you can easily build your own perspective in just a few minutes with Do it your way.

A great starting point for your Intuit research is our analysis highlighting 4 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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