PAR Technology (PAR): Exploring Valuation After Taco Bueno Partnership, Brokerage Upgrade, and Fed-Driven Stock Surge

Simply Wall St
If you have been watching PAR Technology (PAR) lately, the last few days have been anything but dull. The company’s stock jumped 6% in a single session following a combination of positive news. Most recently, Taco Bueno selected PAR as its technology partner for a chain-wide system upgrade. In addition, a brokerage upgrade and renewed optimism about interest rates have given the PAR story fresh momentum for investors weighing their next move. This rush of enthusiasm comes on the heels of a tougher stretch for PAR Technology. While the stock delivered strong growth over the past three years, shares have pulled back 24% in the last month, essentially erasing the gains earned over the past year. That selloff was driven by concerns around a lowered growth outlook after earnings, but the company’s annual revenue is still up 13%. Investors remain eager to see how new partnerships and product rollouts impact future numbers. With the recent bounce and a high-growth narrative back in focus, the big question now is whether PAR Technology is undervalued at these levels or if the current share price fairly reflects its growth potential in the restaurant tech sector.

Most Popular Narrative: 28.1% Undervalued

According to community narrative, PAR Technology is currently seen as significantly undervalued, with a fair value estimate that is over a quarter higher than the present trading price. This perspective is based on consensus analyst forecasts that anticipate renewed revenue growth and improved operating leverage in the years ahead.

“PAR's expanded, unified, cloud-native platform (including PAR OPS, Engagement Cloud, and AI-driven tools like Coach AI) is positioned to benefit from industry-wide modernization and demand for operational efficiency, automation, and actionable analytics. These secular drivers should support sustained ARR and earnings growth.”

Want to know how this bold valuation is justified? The secret behind this number includes a big shift in business model, ambitious growth targets, and assumptions about profitability most companies can only dream of. Curious which future milestones must be hit for PAR stock to live up to this bullish narrative? You will want to see how these projections are stacked up in the full analysis.

Result: Fair Value of $76 (UNDERVALUED)

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

However, persistent delays in major rollouts and heightened competition could quickly undermine this optimistic outlook for PAR Technology's growth and valuation.

Find out about the key risks to this PAR Technology narrative.

Another View: What Do Traditional Valuations Say?

While the analyst narrative paints a bullish case, the SWS DCF model also suggests PAR Technology is undervalued using a different set of assumptions about future cash flows. However, what if both methods are missing something?

Look into how the SWS DCF model arrives at its fair value.
PAR Discounted Cash Flow as at Aug 2025
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out PAR Technology 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 PAR Technology Narrative

If you would rather draw your own conclusions or want to investigate the numbers for yourself, you can craft a personalized PAR Technology outlook in just a few minutes by using do it your way.

A great starting point for your PAR Technology research is our analysis highlighting 2 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.

Valuation is complex, but we're here to simplify it.

Discover if PAR Technology might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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