Reassessing IDT’s Valuation After Recent Share Price Drift and 3-Month Pullback

IDT, the diversified communications and fintech company, has quietly kept its share price moving this month, and that drift can be useful for investors trying to reconcile recent gains with a weaker past 3 months.

See our latest analysis for IDT.

Zooming out, IDT’s $51.47 share price now sits above where it started the year, with a solid year to date share price return and a strong multi year total shareholder return. This suggests longer term momentum remains constructive despite the recent 90 day pullback.

If you like the mix of communications, fintech, and recurring revenue that IDT offers, it may also be worth exploring fast growing stocks with high insider ownership as potential sources of your next idea.

With shares still well below the average analyst target and trading on a modest value score despite resilient earnings, investors now face a key question: is IDT a contrarian buy or already discounting its future growth?

Most Popular Narrative: 35.7% Undervalued

With IDT last closing at $51.47 against a narrative fair value of $80, the gap points to significant upside if the thesis holds.

The company's intention to continue repurchasing shares and increasing dividends, backed by strong cash generation, suggests improved earnings per share (EPS) growth potential.

With ongoing subscription revenue growth and strategic investments in AI and digital channels, net2phone's future performance is expected to boost revenue and improve adjusted EBITDA margins.

Read the complete narrative.

Curious how modest revenue shrinkage can still support richer profits and a premium future earnings multiple? Usually, those numbers do not coexist. Want to see how this narrative blends stable margins, disciplined buybacks, and a higher valuation bar into one cohesive fair value story?

Result: Fair Value of $80 (UNDERVALUED)

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

However, persistent forex headwinds or misjudged capital allocation between buybacks, dividends, and growth investments could easily derail the current undervaluation thesis.

Find out about the key risks to this IDT narrative.

Another Lens On Value

On earnings, the story looks less generous. IDT trades on a price to earnings ratio of 15.9 times, slightly richer than the global telecom average of 15.8 times, well above peers at 7.5 times, and above our fair ratio of 12.9 times. This points to valuation risk rather than clear upside.

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own IDT Narrative

If you see the numbers differently or prefer to dig into the details yourself, you can build a personalized view in minutes: Do it your way.

A great starting point for your IDT 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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