Is Procore Technologies (PCOR) Offering Value After A 33% One Month Share Price Slide

• If you are wondering whether Procore Technologies is starting to look attractive at current levels, this article walks through what the recent share price tells you about the stock's value.
• After closing at US$47.88, the share price is sitting after a 7.4% decline over the past week, a 33.5% decline over the last 30 days, and a 36.2% decline over the past year. These moves may change how investors think about both upside potential and risk.
• Recent coverage has centered on Procore's role in construction software and how sentiment around growth focused tech names has shifted. This helps frame the sharp moves in the share price and suggests the market is actively reassessing what it is willing to pay for Procore's future cash flows.
• On our framework, Procore scores 5 out of 6 on our valuation checks, and you can see that valuation score in detail here. Next, we will walk through the standard valuation methods behind that number and then finish with a more complete way to think about what the stock might be worth.

Find out why Procore Technologies's -36.2% return over the last year is lagging behind its peers.

Approach 1: Procore Technologies Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model estimates what a company might be worth by projecting future cash flows and then discounting those back to today using a required rate of return.

For Procore Technologies, the model used is a 2 Stage Free Cash Flow to Equity approach. The latest twelve month free cash flow is about $137.9 million, and the projection set provided runs through to 2035, with analyst inputs up to 2029 and further years extrapolated by Simply Wall St. For example, projected free cash flow for 2029 is $545.7 million, and the ten year path includes discounted estimates such as $239.0 million in 2026 and $441.6 million in 2035.

When all those projected cash flows are discounted back and summed, the model arrives at an estimated intrinsic value of about $83.74 per share. Compared with the recent share price of $47.88, this implies Procore is trading at roughly a 42.8% discount, so the stock appears undervalued on this DCF view.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Procore Technologies is undervalued by 42.8%. Track this in your watchlist or portfolio, or discover 55 more high quality undervalued stocks.

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

Approach 2: Procore Technologies Price vs Sales

For a company like Procore Technologies that is focused on scaling its platform, the P/S ratio is a useful way to think about value, because it compares what you are paying to the revenue the business is already generating, regardless of current earnings.

In general, investors tend to accept a higher P/S multiple when they see stronger growth potential and lower perceived risk, and a lower multiple when growth expectations are more modest or risks feel higher. So what really matters is how Procore's P/S compares with sensible benchmarks.

Right now, Procore trades on a P/S of 5.84x. That sits above the broader Software industry average of 3.52x, but below the peer group average of 9.40x. Simply Wall St's Fair Ratio for Procore comes in at 5.99x, which is its view of a reasonable P/S once you factor in the company’s growth profile, profit margins, industry, market cap and risk characteristics.

This Fair Ratio is more tailored than a simple peer or industry comparison because it attempts to line up the multiple with Procore's specific fundamentals rather than using broad group averages. With the current 5.84x P/S very close to the 5.99x Fair Ratio, the shares appear to be priced roughly in line with this framework.

Result: ABOUT RIGHT

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Upgrade Your Decision Making: Choose your Procore Technologies Narrative

Earlier we mentioned that there is an even better way to understand valuation. Narratives on Simply Wall St let you connect your view of Procore Technologies, such as whether AI tools, government platforms and public sector demand can support revenue and margin assumptions, to a specific forecast and fair value on the Community page. You can then compare that fair value with the current share price to decide if the stock looks attractive or expensive. Each Narrative updates automatically when new news or earnings land. One Procore Narrative currently anchors on a fair value of about US$83.89 per share, while others sit closer to US$91 or US$70, reflecting how different investors can look at the same company and reach very different conclusions.

Do you think there's more to the story for Procore Technologies? Head over to our Community to see what others are saying!

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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