- If you are wondering whether Intapp is starting to look interesting at its current share price, you are not alone and this article is designed to help you weigh that up.
- The stock has recently seen a 5.2% decline over the last week, a 44.9% decline over the last month and a 67.3% decline over the past year, which will naturally raise questions about both risk and potential future returns.
- These moves sit against a backdrop of ongoing coverage of Intapp as a listed software company, with investors watching how the market is currently pricing its prospects relative to peers and sector sentiment. While this article is not tied to a specific event, it aims to give that recent share price performance more context by focusing squarely on what you are paying for the business today.
- On our simple 6 point valuation checklist, Intapp scores 4 out of 6. This suggests there are several areas where the stock screens as undervalued. We will walk through those valuation methods next before finishing with a tool that can help you go even deeper on what that fair value might mean for you.
Find out why Intapp's -67.3% return over the last year is lagging behind its peers.
Approach 1: Intapp Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow, or DCF, model takes estimates of the cash Intapp could generate in the future and discounts those projected cash flows back to what they might be worth in today's dollars.
For Intapp, the model used is a 2 Stage Free Cash Flow to Equity approach, based on cash flow projections expressed in $. The most recent last twelve months free cash flow is about $100.1 million. Analyst estimates and extrapolations then extend this out, with Simply Wall St projecting annual free cash flow out to 2035. This includes a forecast of $175.1 million in 2028 and further estimated figures through year 10.
When all these projected cash flows are discounted back and added together, the model arrives at an estimated intrinsic value of $49.50 per share. Compared with the current share price, this implies a 56.3% discount, which indicates the stock screens as undervalued under this DCF framework.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Intapp is undervalued by 56.3%. Track this in your watchlist or portfolio, or discover 53 more high quality undervalued stocks.
Approach 2: Intapp Price vs Sales
For software businesses, the P/S ratio can be a useful way to think about value because revenue is often more stable and easier to compare than near term profits. Investors usually accept a higher or lower P/S depending on what they expect for future growth and how risky they think those cash flows are, so there is no single “right” number.
Intapp currently trades on a P/S of 3.20x. That sits close to both the peer average of 3.20x and the wider Software industry average of 3.46x, which suggests the market is broadly treating it in line with similar names on a simple sales multiple basis.
Simply Wall St’s Fair Ratio for Intapp is 3.73x, which is its own estimate of what a “normal” P/S might be after accounting for factors like earnings growth, industry, profit margins, market value and specific risks. This can be more tailored than a straight comparison with peers or the sector, which only looks at headline multiples. With the current 3.20x P/S sitting below the 3.73x Fair Ratio, the shares screen as undervalued on this measure.
Result: UNDERVALUED
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Upgrade Your Decision Making: Choose your Intapp Narrative
Earlier we mentioned that there is an even better way to understand what you are paying for Intapp. Let us introduce you to Narratives, a simple framework on Simply Wall St’s Community page where you connect your view of the company’s story to a set of explicit revenue, earnings and margin forecasts. You then link those to a Fair Value, and compare that Fair Value to today’s price to help you decide whether to buy, hold or sell. Each Narrative updates automatically as new news or earnings arrive. For example, one Intapp investor might align with a cautious Fair Value of about US$33.00, while another leans towards a much higher Fair Value of US$76.00, both using the same tool but with different assumptions.
Do you think there's more to the story for Intapp? Head over to our Community to see what others are saying!
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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