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    Assessing BILL Holdings (BILL) Valuation After Earnings Beat Guidance Hike And Potential Sale Talks

    Simply Wall St·02/08/2026 12:08:39
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    BILL Holdings (BILL) is back in focus after a sharp stock move tied to a stronger than expected earnings update, higher full year guidance, and fresh M&A chatter involving private equity firm Hellman & Friedman.

    See our latest analysis for BILL Holdings.

    The 37.2% 1 day share price return, taking BILL Holdings to US$48.94, came after earnings, raised guidance, and the potential sale discussions shifted how investors view its growth prospects and risks. Even so, the share price return over the year to date is slightly negative and the 1 year total shareholder return of 21.2% decline underlines that, despite the recent surge, longer term performance has been weak.

    If this kind of rebound has you thinking about where else strong moves might show up next, it could be a good time to broaden your search with our 56 profitable AI stocks that aren't just burning cash.

    With revenue guidance now higher, fresh AI and embedded finance momentum, a completed buyback, and potential private equity interest in the mix, you have to ask: is BILL still undervalued, or are markets already pricing in future growth?

    Most Popular Narrative: 19.6% Undervalued

    With BILL Holdings closing at $48.94 against a widely followed fair value estimate of $60.86, the narrative suggests the market is still applying a discount, even after the latest jump.

    Expansion of embedded finance capabilities and the Embed 2.0 strategy, including strategic partnerships with large enterprise software platforms, is set to broaden BILL's distribution channels and could significantly increase customer acquisition and transaction volumes, translating into higher long-term revenues.

    Read the complete narrative.

    Curious what kind of earnings path and margin profile would support that gap between price and fair value? The most followed narrative leans on steady revenue compounding, rising profitability, and a higher future earnings multiple that still sits well above current sector norms. The full set of assumptions is where the story really gets interesting.

    Result: Fair Value of $60.86 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, there are still real pressure points, including slower net customer additions and heavy AI investment that could weigh on margins if revenue trails current expectations.

    Find out about the key risks to this BILL Holdings narrative.

    Build Your Own BILL Holdings Narrative

    If you see the numbers differently or want to stress test your own assumptions, you can build a custom BILL story in just a few minutes by starting with Do it your way.

    A great starting point for your BILL Holdings research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

    Looking for more investment ideas?

    If BILL has sparked your interest, do not stop here. Use the screener to uncover other opportunities that fit your style so you are not leaving ideas on the table.

    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.