Is It Time To Reassess Oddity Tech (ODD) After Recent Share Price Weakness?

• If you are wondering whether Oddity Tech at around US$38 is attractively priced or not, this article walks through what the numbers say about its current valuation.
• The share price has recently been under pressure, with returns of a 5.4% decline over the last 7 days, an 11.6% decline over 30 days, and a 12.4% decline over the past year. This can change how investors think about both risk and opportunity.
• Recent coverage of Oddity Tech has focused on how the business is positioning itself within the broader beauty and personal care space, as well as how investors are reacting to that positioning in the current market. These headlines help frame whether the latest share price moves reflect changing expectations or simply shifting sentiment.
• On our valuation checklist, Oddity Tech scores 4 out of 6 for being undervalued. This sets up a closer look at different valuation methods next and a final section that goes one step further to put those numbers in a fuller context.

Find out why Oddity Tech's -12.4% return over the last year is lagging behind its peers.

Approach 1: Oddity Tech Discounted Cash Flow (DCF) Analysis

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

For Oddity Tech, the model uses a 2 Stage Free Cash Flow to Equity approach, starting from last twelve months free cash flow of about $98.1 million. Analysts provide explicit free cash flow estimates for the next few years, and Simply Wall St extrapolates further out, with projected free cash flow of $283 million in 2030 based on those inputs.

Across the 10 year projection period, annual free cash flows between 2026 and 2035 are forecast in a range of roughly $156.8 million to $411.5 million, with each of those figures discounted back to today in the model. Adding those discounted values together, and including a terminal value, leads to an estimated intrinsic value of about $72.72 per share.

Against a current share price around $38, the DCF output suggests the stock is 47.7% undervalued based on these assumptions and projections.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Oddity Tech is undervalued by 47.7%. Track this in your watchlist or portfolio, or discover 884 more undervalued stocks based on cash flows.

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

Approach 2: Oddity Tech Price vs Earnings

For a profitable company, the P/E ratio is a useful yardstick because it links what you pay directly to the earnings the business is already generating. Investors usually expect higher growth or lower perceived risk to support a higher, “normal” P/E, while slower growth or higher risk tends to justify a lower one.

Oddity Tech currently trades on a P/E of 19.81x. That sits below both the Personal Products industry average P/E of 22.38x and the peer group average of 23.43x, so the market is pricing Oddity Tech’s earnings at a discount to these broad benchmarks.

Simply Wall St’s “Fair Ratio” for Oddity Tech is 18.82x. This is a proprietary estimate of what the P/E might be given the company’s earnings growth profile, industry, profit margin, market cap and risk factors. Because it is tailored to Oddity Tech’s own characteristics rather than broad group averages, it can be more informative than a simple comparison with industry or peers.

Comparing the current P/E of 19.81x with the Fair Ratio of 18.82x suggests the shares trade modestly above this modelled level. This points to the stock being slightly overvalued on this metric.

Result: OVERVALUED

P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1444 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Oddity Tech Narrative

Earlier we mentioned that there is an even better way to understand valuation. Narratives let you spell out your story for a company, link that story to your own forecasts for revenue, earnings and margins, and then convert those into a Fair Value you can compare with the current price. All of this happens inside Simply Wall St’s Community page, where Narratives are updated automatically when new news or earnings arrive. This is why one Oddity Tech investor might build a Narrative around a Fair Value close to the higher analyst target of US$90, while another might anchor theirs near the lower US$55 figure. These investors may have very different views on its AI driven beauty model, international expansion and new healthcare verticals, yet both can use the same simple tool to decide whether they see the current price as an opportunity or a reason to be cautious.

Do you think there's more to the story for Oddity Tech? 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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