A Fresh Look at Clear Secure (YOU) Valuation Following Major Healthcare and Travel Expansion Moves

If you have been tracking Clear Secure (YOU), the recent flurry of news might have you rethinking your stance on the stock. In the past two weeks alone, Clear Secure has rolled out major integrations of its CLEAR1 identity platform, landing significant partnerships with Tampa General Hospital and Hackensack Meridian Health and producing tangible gains in both security and daily operations. At the same time, the company ramped up its TSA PreCheck enrollment footprint through over 190 Staples locations nationwide and started a pilot of biometric eGates at key airports ahead of the FIFA World Cup. This move could reshape the air travel experience for millions.

These developments arrive at a time when Clear Secure’s stock has been steadily gaining ground, up 29% in the past year and approaching 70% over three years, with momentum building even more sharply in the past three months. Alongside the drumbeat of new deals in both healthcare and travel, investors are paying close attention to the company’s ability to expand its technology platform, win new customers, and drive deeper adoption well beyond airport security lines.

But with shares up significantly and future growth stories increasingly reflected in the current price, investors may be asking whether this recent surge in adoption is creating a true buying moment for Clear Secure or if the market is already factoring in the next phase of growth.

Most Popular Narrative: 22.1% Undervalued

According to the narrative by Brogers, Clear Secure appears positioned for significant future value, with its current share price trading well below estimated fair value using a 7.04% discount rate.

Expansion into digital identity services for non-airport use cases (such as stadiums, healthcare, and retail) could open new revenue streams. Partnerships with governments or private enterprises for identity verification could accelerate growth.

Curious what’s fueling this bullish price target? There is a core set of aggressive growth assumptions, including a projected surge in enrollments and major improvements to both margins and earnings. But what are the key numbers this narrative is betting on, and which wild card metric stands to unlock a new phase of value creation for Clear Secure? Find out which bold targets are driving that hefty valuation premium and why the market may be mispricing the stock’s true potential.

Result: Fair Value of $46.66 (UNDERVALUED)

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

However, privacy concerns and operational hiccups could challenge Clear Secure’s expansion story. These issues may serve as pivotal factors for future investor caution.

Find out about the key risks to this Clear Secure narrative.

Another View: Discounted Cash Flow Perspective

Taking a step back from the multiples-based approach, our DCF model also suggests Clear Secure may be trading below its calculated fair value. This perspective places the focus on future cash flows rather than current market sentiment. Could this indicate even deeper value, or are there risks that have not yet surfaced?

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

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Clear Secure for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Clear Secure Narrative

Of course, the numbers and assumptions here reflect just one take. If you believe you see things differently, you can dive into the data, test your views, and do it your way in just a few minutes.

A great starting point for your Clear Secure research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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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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