PagerDuty (PD): Assessing Valuation After Recent Share Slide and Shifting Growth Sentiment

PagerDuty (PD) shares have continued to soften, dipping nearly 1% since yesterday and down over 12% in the past three months. Investors are weighing the company's recent performance alongside ongoing questions about margin improvement and revenue growth.

See our latest analysis for PagerDuty.

PagerDuty’s momentum has slowed this year, with a 1-year total shareholder return of -26% and shares down more than 18% year-to-date. Recent price declines suggest investors are recalibrating their view of its growth prospects as tech sector sentiment shifts.

If PagerDuty’s recent moves have you thinking bigger picture, now is a great time to explore fast growing stocks with high insider ownership.

This recent slide begs the question: is PagerDuty now trading at a bargain given its long-term growth potential, or are markets right to remain cautious about the path ahead?

Most Popular Narrative: 20.5% Undervalued

PagerDuty’s most widely followed narrative pegs fair value at $18.50 per share, which is well above its last close of $14.70. This considerably higher estimate underscores that, in the eyes of analysts, current prices may not capture the company’s full upside as it leans into digital transformation and AI-driven automation.

The rapid growth in usage and complexity of digital infrastructure, especially within AI-native and large enterprise customers, alongside record platform utilization (over 25% year-over-year growth) points to rising demand for PagerDuty's core incident management and automation offerings, which can drive strong future recurring revenue as digital transformation accelerates globally.

Read the complete narrative.

Want to know how bullish analysts justify this fair value? One powerful forecast about earnings, profit rebound, and tech sector premium multiples lies beneath the headline figure. Let the number crunching surprise you and unpack the detailed rationale behind the narrative’s call.

Result: Fair Value of $18.50 (UNDERVALUED)

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

However, steepening competition from larger rivals and the unpredictable effects of usage-based pricing could easily challenge PagerDuty's growth story in the coming quarters.

Find out about the key risks to this PagerDuty narrative.

Build Your Own PagerDuty Narrative

If you think there’s more to the story, dive into the data for yourself and craft your own take in just a few minutes. Do it your way.

A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding PagerDuty.

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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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