• If you are wondering whether Procore Technologies at around US$59 a share is a bargain or just fairly priced, the valuation story is where things get interesting.
• The stock has recently shown mixed signals, with a 2.8% gain over the last 7 days and 12.7% over the last 30 days, while year to date it is down 15.8% and the 1 year return sits at a 14.0% decline.
• Recent attention on Procore has centered on its role in construction software and how investors are interpreting the stock's pullback over the past year against those sector themes. Headlines have focused on whether current conditions in software and construction justify the recent short term rebound in the share price.
• Procore currently holds a valuation score of 2 out of 6. The next sections will compare what different valuation methods suggest about that number and will point to a more complete way of thinking about value at the end of the article.

Procore Technologies scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Procore Technologies Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model estimates what a business could be worth today by projecting its future cash flows and discounting them back to the present.

For Procore Technologies, the model uses a 2 Stage Free Cash Flow to Equity approach based on cash flow projections. The latest twelve month free cash flow is about $192.1 million. Analyst estimates and subsequent extrapolations suggest free cash flow of $282.6 million in 2026, rising to a projected $441.1 million in 2028, with further values out to 2035 generated by Simply Wall St based on those inputs.

When all of these projected cash flows are discounted back, the DCF model indicates an estimated intrinsic value of about $69.31 per share. Compared with the current share price of roughly $59, this implies Procore trades at a 14.9% discount to the DCF estimate. On this model alone, the shares appear to trade below the DCF-derived estimate of intrinsic value.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Procore Technologies is undervalued by 14.9%. Track this in your watchlist or portfolio, or discover 49 more high quality undervalued stocks.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Procore Technologies.

Approach 2: Procore Technologies Price vs Sales

For companies where earnings are not yet a stable guide, the price to sales, or P/S, ratio can be a useful way to think about valuation because it compares the value the market places on the business to the revenue it is currently generating.

What counts as a reasonable P/S ratio often reflects the market’s expectations for future growth and the level of risk. Higher expected growth and lower perceived risk usually support a higher multiple, while slower expected growth or higher risk tend to point to a lower, more conservative range.

Procore Technologies currently trades on a P/S of 6.70x. That sits above the wider Software industry average of 3.50x but below the peer group average of 8.40x. Simply Wall St’s Fair Ratio for Procore is 5.75x, which is its proprietary view of what a suitable P/S might be given the company’s revenue growth profile, margins, industry, market value and risk factors.

This Fair Ratio can be more useful than a simple comparison to peers or the industry because it adjusts for company specific characteristics instead of assuming that one size fits all. Against that 5.75x Fair Ratio, Procore’s current 6.70x P/S suggests the shares trade at a premium to this model.

Result: OVERVALUED

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Upgrade Your Decision Making: Choose your Procore Technologies Narrative

Earlier it was mentioned that there is an even better way to understand valuation, so meet Narratives, a simple tool on Simply Wall St’s Community page that lets you set out your story for Procore Technologies, link that story to specific assumptions for revenue, earnings and margins, and then see what Fair Value those assumptions imply compared to today’s price.

Instead of only looking at a P/S, DCF or P/E output, a Narrative helps you connect the business context, such as AI driven construction workflows, global expansion or slower adoption of new modules, to a full forecast and value range so you can see whether your view lines up closer to a bullish fair value like US$95.00 or a more cautious level around US$55.00.

Because Narratives on Simply Wall St update automatically when new data, news or earnings are added, you can quickly see how fresh information affects your Fair Value range and use that side by side with the current share price to decide whether Procore looks closer to your version of underpriced, fairly priced or expensive based on your own assumptions.

For Procore Technologies however, we will make it really easy for you with previews of two leading Procore Technologies Narratives:

🐂 Procore Technologies Bull Case

Fair value in this bullish narrative: US$72.56 per share

Implied discount to this fair value at a US$59.00 share price: about 18.7%

Revenue growth assumption: 13.32% a year

• Highlights AI driven product upgrades, broader product adoption and international wins as key supports for revenue, pricing power and margins over time.
• Builds in analyst assumptions for double digit annual revenue growth and margin improvement, using an 8.51% discount rate to bring future earnings back to today.
• Arrives at a fair value of US$72.56 and an analyst consensus target of US$72.56, while encouraging you to stress test those numbers against your own expectations.

🐻 Procore Technologies Bear Case

Fair value in this bearish narrative: US$55.00 per share

Implied premium to this fair value at a US$59.00 share price: about 7.3%

Revenue growth assumption: 12.59% a year

• Assumes AI, new modules and government or international contracts gain traction more slowly, which could keep revenue growth and margin expansion closer to the lower end of analyst views.
• Uses revenue growth of 12.59% a year, margin improvement to 10.18% and a 56.3x future P/E, discounted at 8.40%, to capture a more cautious path for earnings and cash flow.
• Arrives at a fair value of US$55.00, close to the bearish analyst target, and frames the current US$59.00 price as above that level, leaving you to decide which set of assumptions feels more realistic for your own thesis.

Do you think there's more to the story for Procore Technologies? 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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Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.