Vertex (VERX) Valuation Check After New AI Tax Platform Launch With CPA.com and Kintsugi

Vertex (VERX) is back in focus after expanding its long running partnership with CPA.com, rolling out an AI powered sales tax platform built with Kintsugi that aims to streamline compliance work for accounting firms.

See our latest analysis for Vertex.

Despite this AI push and Vertex’s upcoming presence at the Digital CPA Conference, the stock’s 1 year total shareholder return is deeply negative while the 3 year total shareholder return remains solidly positive. This suggests longer term momentum but short term skepticism around execution and valuation.

If this kind of tax tech pivot has your attention, it might be worth exploring other high growth tech and AI stocks that could be setting up for their own re rating.

With revenue still growing double digits and shares trading at a steep discount to analyst targets, investors now face a key question: Is Vertex an overlooked AI tax winner, or is the market already pricing in its next leg of growth?

Most Popular Narrative: 28.5% Undervalued

Compared to Vertex’s last close at $19.91, the most followed narrative pegs fair value significantly higher, setting up a stark gap between story and share price.

Internal technology investments and measured expense controls are improving operating efficiency and setting up for greater margin leverage as cloud revenue grows as a share of the business, contributing to long term EBITDA and net margin expansion.

Read the complete narrative.

Want to see what kind of revenue ramp, margin lift and earnings power this narrative is baking in to justify that gap? The answer rests on an aggressive profit turnaround, faster recurring revenue growth and a future earnings multiple usually reserved for elite software names. Curious how those ingredients combine into today’s fair value call?

Result: Fair Value of $27.86 (UNDERVALUED)

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

However, slower ARR growth during the CEO transition, along with intensifying competition in global tax compliance, could easily derail those upbeat recovery assumptions.

Find out about the key risks to this Vertex narrative.

Build Your Own Vertex Narrative

If this view does not quite fit your outlook, or you prefer digging into the numbers yourself, you can build a custom take in minutes: Do it your way.

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Vertex.

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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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