Event context and recent price performance
Science Applications International (SAIC) has attracted fresh attention after recent trading, with shares last closing at $100.91. Investors are weighing this price against mixed return figures and modest annual revenue and net income growth.
See our latest analysis for Science Applications International.
That recent 6.3% 7 day share price return and 5.8% 30 day share price return contrast with a 5.6% 90 day decline and a 6.2% 1 year total shareholder return decline, suggesting momentum has been recovering after earlier weakness.
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With SAIC trading at $100.91, sitting at a reported 50.2% intrinsic discount and around 10% below the average analyst target, investors may ask whether this reflects a genuine value gap or whether the market is already pricing in the company’s future growth.
Most Popular Narrative: 11% Undervalued
At $100.91, the most followed narrative pegs Science Applications International's fair value at about $113.38, suggesting a valuation gap that hinges on specific earnings and margin assumptions.
The analysts have a consensus price target of $116.0 for Science Applications International based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $130.0, and the most bearish reporting a price target of just $91.0.
Want to see what sits behind that valuation spread? The narrative leans on modest revenue growth, slightly softer margins, and a future earnings multiple that still implies a premium to today.
Result: Fair Value of $113.38 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this hinges on government IT budgets and award timing, with slower contract wins or sustained funding pressure potentially undermining both revenue assumptions and margin resilience.
Find out about the key risks to this Science Applications International narrative.
Next Steps
With mixed sentiment running through this story, it helps to look at the numbers yourself and decide how the balance of risks and rewards stacks up for your portfolio. To do so, take a closer look at the 3 key rewards and 2 important warning signs
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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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