Bentley Systems (BSY) is back in focus after reporting fourth quarter and full year 2025 results, issuing 2026 revenue guidance, and affirming its quarterly dividend. This gives investors fresh numbers to assess the stock.
See our latest analysis for Bentley Systems.
The latest earnings update appears to be feeding into a rebound in sentiment, with a 21.25% 1 month share price return and a 5.43% year to date share price return contrasting with a 1.64% decline in 1 year total shareholder return. This suggests momentum has recently picked up from a weaker longer term base.
If this earnings driven move has you thinking about where else capital might find traction, it could be a good moment to scan 19 top founder-led companies for potential next ideas.
With the shares up sharply over the past month, a last close of $40.22 and only a small implied intrinsic discount of around 1%, the key question is whether Bentley Systems is still mispriced or if the market is already factoring in future growth.
Most Popular Narrative: 16.2% Undervalued
With Bentley Systems last closing at $40.22 against a widely followed fair value of $48, the current price sits below where this narrative says it should be. This sets up a valuation story that leans on long term growth and cash flow visibility.
Increasing adoption of subscription and consumption-based models (now representing >92% of revenues) provides greater revenue visibility, stability, and consistent margin expansion, which can support higher valuation multiples over time.
Read the complete narrative. Read the complete narrative.
Want to see what sits behind that confidence in recurring revenue and margins? The fair value hinges on specific growth, profitability, and valuation multiple assumptions. The full narrative lays out those building blocks and how they connect to that $48 estimate.
Result: Fair Value of $48 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, the narrative can crack if agentic AI shifts demand away from Bentley’s traditional software model, or if high R&D and platform spending weighs on margins longer than expected.
Find out about the key risks to this Bentley Systems narrative.
Another Angle: Earnings Multiple Paints A Richer Picture
The narrative fair value of $48 suggests upside, but the current P/E of 45.4x is high compared with the US Software industry at 27x and also sits above an estimated fair ratio of 28x. That gap points to valuation risk as much as opportunity. Which signal matters more to you?
See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
If this mix of optimism and caution feels familiar, use it as a prompt to move quickly. Review the full picture and weigh up the 3 key rewards and 1 important warning sign for yourself.
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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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