Yext (YEXT) has seen its stock climb in recent days, returning just over 1% for the week and roughly 4% in the past 3 months. Investors may be watching closely to see if these moves reflect growing confidence as the company prepares for upcoming updates.
Yext’s share price is up over 30% year-to-date, reflecting renewed optimism after a stretch of more muted performance. While the past month was a bit softer, longer-term total shareholder return tells a story of powerful momentum, with nearly doubling in three years even after factoring in a tough five-year run.
But with Yext’s shares vaulting higher this year, the big debate now is whether there is still value left for new investors or if the market has already fully priced in the company’s future growth potential.
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Most Popular Narrative: 9.8% Undervalued
The most widely followed narrative suggests Yext’s intrinsic value sits noticeably above its latest closing price of $8.51, hinting at room for further upside. As expectations build around the company’s technology and customer base, major drivers come into focus.
Launch and strong early reception of Yext Scout, with a mix of new and existing customers and a waitlist of 2,000+, demonstrates product-market fit for new AI-driven offerings that address evolving brand discovery needs. This is likely to accelerate upsell, customer retention, and ARR growth.
Want a glimpse at what could really shift Yext’s future? The fair value rests on high-stakes margin expansion, faster earnings, and game-changing revenue moves. The most ambitious numbers are hiding just beneath the surface. Uncover the bold assumptions powering this premium price tag and find out what could truly set Yext apart from the crowd.
However, persistent market competition and uncertainty about new product adoption could quickly undermine bullish expectations if revenue growth or retention stalls.
While some see Yext as undervalued, a closer look at its earnings ratio raises caution. Yext trades at 140.8 times its latest earnings, significantly higher than both the industry average of 35.6 and the peer average of 26.9. The fair ratio estimate is 41.4. This substantial gap suggests that investors expecting long-term growth are taking on notable valuation risk if those expectations are not met. Does this pricing strategy leave sufficient potential for reward?
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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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