Red Violet (RDVT) has drawn attention after a recent share price move, with the stock closing at US$73.41. Recent returns over the past month and past three months give investors fresh performance context.
For context, Red Violet’s recent pullback, with a 1-day share price return down 2.77% and a 7-day share price return down 3.67%, comes after a strong 90-day share price return of 32.06% and a three-year total shareholder return of 262.49%. This indicates that momentum has been strong over the longer horizon even as short term sentiment cools.
Scan how Red Violet’s recent swing compares with other fast movers in its space by checking the hand picked 16 high quality undiscovered gems.
Red Violet has built a data heavy, identity focused business that many investors see as high quality, yet the recent surge and slight pullback leave a sharper question hanging. Are you paying a fair price for that strength today?
Most Popular Narrative: 13% Undervalued
Red Violet’s most followed valuation story pegs fair value at $84.50, which sits above the recent $73.41 close and frames the current pullback as a potential mispricing rather than a reset.
The analysts have a consensus price target of $84.5 for Red Violet 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 $90.0, and the most bearish reporting a price target of just $73.0.
See why 10 investors see Red Violet as 13% undervalued.
Result: Fair Value of $84.50 (UNDERVALUED)
Still, the Red Violet story can break if heavy spending on data and AI increases costs faster than revenue, or if key supplier or privacy rules tighten.
Find out about the key risks to this Red Violet narrative.
Another View: Red Violet Looks Expensive On Earnings
Red Violet may screen as 13% undervalued against the analyst fair value of $84.50, yet the current P/E of 71.9x tells a different story. That is more than double the US Software industry at 30.7x and well above a fair ratio of 25.4x, which points to meaningful valuation risk if expectations ease. So which signal do you trust when growth slows from exceptional to simply solid?
See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
Mixed signals on Red Violet’s valuation can tempt you to sit back, but the sharper move is to review the underlying data now and test your own thesis with the 2 key rewards.
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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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