See our latest analysis for eXp World Holdings.
Over the past year, eXp World Holdings’ share price has been volatile. Momentum is showing signs of fading as the 1-year total shareholder return is down nearly 19 percent, even though recent price moves have been more muted. Short-term swings have not reversed this longer-term downtrend, so the stock’s overall performance continues to reflect shifting expectations around its growth and risk profile.
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With shares lagging over the past year but some signs of stabilization, the question for investors is whether eXp World Holdings is trading below its true value or if the market has already accounted for future prospects. Is there still a buying opportunity, or is everything priced in?
Most Popular Narrative: 10.5% Undervalued
At a last close price of $10.74, the consensus narrative puts fair value at $12.00, suggesting room for upside if those projections play out. The narrative’s fair value uses a discount rate of 8.3% and reflects expectations for both business growth and structural industry change.
Accelerating global expansion supported by a scalable cloud-based platform is allowing eXp to rapidly launch into new markets (Peru, Turkey, Ecuador, Japan, South Korea) and capture productive agents quickly. This increases potential transaction fees and top-line revenue in tandem with the ongoing digitalization of commerce and work.
Curious what financial leaps and digital strategies are fueling this double-digit valuation gap? The secret lies in some bold growth forecasts, margin expansion assumptions, and a future earnings multiple so high it will leave you wondering how the numbers could add up. Go inside the full narrative and see why the consensus is betting big on eXp’s transformation.
Result: Fair Value of $12.00 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, rapid advances in real estate technology and shifts in commissions or homebuyer demand could disrupt eXp’s growth story and challenge bullish projections.
Find out about the key risks to this eXp World Holdings narrative.
Another View: What Does the DCF Model Say?
While the consensus view sees eXp World Holdings as undervalued based on future growth expectations and current price-to-sales levels, our SWS DCF model takes a more cautious stance. According to its cash flow projections, EXPI is actually trading above fair value right now. Is the market too optimistic about future earnings, or is the DCF model missing something in eXp’s story?
Read More: eXp World Holdings (EXPI): Is This Real Estate Tech Stock Trading Below Its
