Does Intuit’s Latest Earnings Beat Change the Story for 2025 Investors?

If you are following Intuit and wondering whether now is the right moment to buy, hold, or trim your position, you are definitely not alone. Intuit stock has given investors plenty to talk about, with its market value climbing a remarkable 109.6% over the past five years. In the shorter term, the shares have risen 9.5% year-to-date, though the last week saw a dip of about 1.6%. This swing partly tracks broader sector moves as investors digest the latest fintech and AI trends filtering through the market.

These numbers tell a story of strong, long-term growth and near-term volatility. Both of these factors shape how investors perceive risk and opportunity in Intuit’s future. The company is often at the center of innovation conversations, which fuels optimism about its potential to capture more market share. However, recent price action also suggests that some investors are pausing to reassess just how much growth is already priced in, especially as valuations across tech and finance stocks become a greater part of the discussion.

This brings us to the question that keeps coming up: is Intuit undervalued, fairly valued, or a bit stretched at these levels? Looking at the numbers, Intuit scores a 2 out of 6 on our valuation check system. This means it appears undervalued in two key methods, but not across the board. How do these different approaches compare, and which actually matter most for understanding Intuit’s real value potential? Let’s unpack the main valuation frameworks before I share an even better way to get to the heart of what the numbers mean for your next move.

Intuit scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Intuit Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow (DCF) model estimates a company's intrinsic value by projecting its future cash flows and discounting them back to their present value. In Intuit's case, analysts and modelers use recent performance and growth expectations to forecast cash generation as far forward as 2035. This provides a detailed view of the company’s long-term earning power.

Currently, Intuit’s Free Cash Flow stands at approximately $6.0 Billion. According to available estimates, this is expected to more than double within a decade, with projections placing 2030 Free Cash Flow at around $11.7 Billion. The first five years of projections are based on analyst forecasts, while Simply Wall St extrapolates beyond that point.

Based on these forecasts and after applying appropriate discount rates, the resulting intrinsic value of Intuit stock is $730.97 per share. This represents a 6.7% discount compared to the latest market price. This suggests the stock is close to fairly valued, with only a small margin of undervaluation implied by cash flow fundamentals.

Result: ABOUT RIGHT

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Intuit.

Simply Wall St performs a valuation analysis on every stock in the world every day (check out Intuit's valuation analysis). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes.

Approach 2: Intuit Price vs Earnings (PE)

The Price-to-Earnings (PE) ratio is a core valuation metric for established, profitable companies like Intuit. It provides a snapshot of how much investors are willing to pay for each dollar of current earnings, reflecting perceptions of future growth and the risks involved. Companies with higher expected growth or lower perceived risk often command higher PE multiples, while slower-growing or riskier businesses tend to trade at lower ratios.

Intuit currently trades at a PE ratio of 49.1x. In comparison, other software peers average 60.2x, and the industry-wide average is 35.6x. This places Intuit between the sector's higher pricing and the broader industry's more restrained valuations. This positioning recognizes Intuit's robust track record and growth prospects, while also suggesting some caution from the market.

To provide more context, Simply Wall St calculates a “Fair Ratio” for Intuit based on its unique profile, considering factors such as earnings momentum, profit margins, size, and risk exposure. For Intuit, this Fair Ratio is 43.7x. This proprietary metric is intended to be more precise than a simple comparison to industry or peer averages by tailoring expectations to the company's actual fundamentals and outlook.

Comparing Intuit’s current PE with its Fair Ratio shows that the stock is just slightly above what would be considered fairly valued. The difference is within a reasonable margin, so the conclusion is straightforward.

Result: ABOUT RIGHT

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Intuit Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let's introduce you to Narratives. A Narrative is a user-friendly way to connect your view of a company’s story—your perspective on its opportunities and risks—to a concrete financial forecast and your sense of its fair value. Instead of relying solely on formulas, you can build your own assumptions about Intuit's future revenue, earnings, and margins, and see directly how they shape what you think the stock is worth.

Narratives make investing more approachable by turning ideas and analysis into an actionable plan. They are designed to help you compare your calculated Fair Value to the current Price, making it far easier to judge when to buy, hold, or sell. Best of all, Narratives on Simply Wall St’s Community page are dynamic. They update automatically as new news, earnings, or events impact the company, so your view stays relevant over time.

For example, one investor may build a Narrative based on Intuit’s AI and cloud integration, forecasting ambitious 12.7% revenue growth and a fair value of $971 per share. Another might focus on Mailchimp’s slower momentum and forecast a fair value closer to $600, with each story guiding a distinct, data-informed investment stance.

Do you think there's more to the story for Intuit? Create your own Narrative to let the Community know!

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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