Is ePlus (PLUS) Undervalued Following Strong Bookings And Reiterated 2027 Outlook?

ePlus (PLUS) drew investor attention after reporting modest revenue growth for the fiscal first quarter of 2027, highlighting higher bookings and open orders tied to demand for AI infrastructure, security, cloud, and managed services.

See our latest analysis for ePlus.

At a share price of $90.35, ePlus has seen short term share price momentum cool after the earnings release, with a 1 day share price return that declined 4.45%. However, the 1 month share price return of 7.78% and 1 year total shareholder return of 44.55% still point to meaningful gains over a longer stretch as investors weigh its AI driven pipeline, reiterated 2027 guidance and ongoing dividends and buybacks.

If the AI theme in ePlus has your attention, it can be useful to see what else is moving in that space through the Simply Wall St screener for 56 AI infrastructure stocks

After that pullback, ePlus now trades well below the average analyst price target, and the intrinsic value estimate points in the other direction entirely. Which side of that valuation gap looks closer to fair value?

Most Popular Narrative: 18.6% Undervalued

The most followed narrative values ePlus at $111 per share compared with the latest close at $90.35, which frames the current analyst valuation gap.

The widespread adoption of remote/hybrid work models and escalating cybersecurity threats is ensuring continued robust demand for advanced networking and security solutions, core areas where ePlus is seeing double-digit growth and where security now represents 22.8% of gross billings, supporting both top-line revenue expansion and improved margin mix from value-added services.

Read the complete narrative.

Curious what sits behind that $111 figure. The narrative leans heavily on measured revenue growth, modest margin pressure, and a richer future profit multiple to hold it together.

Result: Fair Value of $111 (UNDERVALUED)

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

However, the ePlus story can change quickly if large project based deals prove less repeatable or if margin and cost pressures linger longer than analysts expect.

Find out about the key risks to this ePlus narrative.

Another View On ePlus Valuation

While the popular ePlus narrative leans on a fair value of $111 based on future earnings and multiples, the SWS DCF model lands in a very different place. On that cash flow view, ePlus screens as overvalued at a current price of $90.35. Which framework do you trust more when cash flows and multiples disagree?

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 ePlus 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 51 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

If this mix of optimism and caution around ePlus leaves you undecided, take prompt action to review the details yourself so that you can reach your own conclusion, then check out the 4 key rewards.

Looking for more ideas beyond ePlus?

You do not need to stop with ePlus. Use the Simply Wall St screener to compare different types of opportunities and keep your watchlist fresh with new ideas.

• Target growth potential by scanning for companies that screen as screener containing 19 high quality undiscovered gems.
• Prioritise resilience by focusing on businesses highlighted in the 78 resilient stocks with low risk scores.
• Strengthen your income and stability mix by reviewing stocks featured in the 9 dividend fortresses.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com