A Fresh Look at Klaviyo (KVYO) Valuation as Analyst Sentiment Turns Positive on Earnings Prospects

Recent analyst reports have turned more optimistic regarding Klaviyo (KVYO). Updated earnings estimates and stronger sentiment are pointing to a possible earnings outperformance. This shift has caught the attention of investors watching the company’s next move.

See our latest analysis for Klaviyo.

Despite recent swings, Klaviyo’s share price return tells a story of volatility. A one-month gain of nearly 10% has only partially offset a year-to-date decline of over 31%, while its one-year total shareholder return remains deep in negative territory. After a challenging stretch, a subtle rebound suggests momentum could be shifting as investors weigh improved earnings sentiment against the company’s long-term growth narrative.

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With shares trading at a notable discount to analyst targets and earnings revisions on the rise, the question for investors is whether Klaviyo is genuinely undervalued or if the market has already factored in its future growth prospects.

Most Popular Narrative: 34.6% Undervalued

Klaviyo’s prevailing narrative stakes a fair value of $43.68 per share, significantly above the latest close of $28.56. This makes its current valuation hard to ignore for investors monitoring a potential turnaround.

The rapid innovation and rollout of new AI-first products, including Conversational Agent, Helpdesk, and analytics, expands Klaviyo's addressable market from just marketing automation into broader B2C CRM and customer service. This sets up significant opportunities for higher ARPU and long-term revenue growth.

Read the complete narrative.

What is driving analysts to set such a bold target for Klaviyo right now? Hint: the forecast hinges on a future profit transformation and a step-change in growth. The real surprise comes from quantitative leaps that could position Klaviyo among sector leaders. Discover what underpins this aggressive valuation and what could upend expectations next.

Result: Fair Value of $43.68 (UNDERVALUED)

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

However, persistent margin pressure from rising infrastructure costs and uncertainty around the impact of new AI products could challenge Klaviyo’s bullish outlook.

Find out about the key risks to this Klaviyo narrative.

Another View: The SWS DCF Model Paints a Different Picture

While many investors focus on analyst price targets and market multiples, the SWS DCF model offers a more grounded perspective. According to our DCF model, Klaviyo’s fair value comes in much lower than today’s share price. This suggests the stock could be overvalued if future growth falls short. Which approach will the market trust more?

Look into how the SWS DCF model arrives at its fair value.

Build Your Own Klaviyo Narrative

If you'd rather chart your own course or want to see the numbers differently, you can put together your own narrative in just minutes with Do it your way.

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

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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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