A Look At Bentley Systems (BSY) Valuation After Cautious Investor Sentiment And Margin Pressures

Conestoga Capital Advisors recently called out Bentley Systems (BSY) in its fourth quarter 2025 investor letter, after the stock moved lower on softer revenue growth, margin pressure from higher investments, and uncertainty around project timing and public-sector spending.

See our latest analysis for Bentley Systems.

Bentley Systems shares have come under pressure in recent months, with a 30 day share price return of 12.9% and a 90 day share price return decline of 17.6%. This has contributed to a 1 year total shareholder return decline of 25.3% as investors reassess growth durability and near term execution risks around project timing and public sector demand.

If this pullback has you thinking about where else growth and capital allocation stories might be taking shape, it could be a good moment to scan our 22 top founder-led companies and see what stands out.

With revenue growth running at 9.6% and net income growth at 15.7%, alongside a share price that is down 25.3% over the past year, is Bentley Systems now a misunderstood value or is future growth already baked in?

Most Popular Narrative: 46.3% Undervalued

Compared with the most followed fair value estimate of $63.00, Bentley Systems at $33.84 screens as heavily discounted. That gap rests on some punchy long term assumptions.

With rapid infrastructure investment in the U.S., India, Europe, and the Middle East, and only partial deployment of multi-trillion-dollar public funding streams, Bentley is poised to benefit from a secular wave of infrastructure digitization, supporting several years of robust ARR growth and reduced revenue volatility, far exceeding companies exposed to more cyclical end markets.

Read the complete narrative.

Curious what earnings path needs to play out to support that kind of gap to fair value? The narrative leans on faster recurring revenue growth, higher margins, and a rich future earnings multiple.

Result: Fair Value of $63.00 (UNDERVALUED)

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

However, those upbeat assumptions could be knocked off course if tighter data rules raise costs or if the integration of past acquisitions drags on earnings quality.

Find out about the key risks to this Bentley Systems narrative.

Another Angle On Valuation: Paying Up For Quality?

While the SWS fair value model suggests Bentley Systems is trading about 11.5% below its estimated value, the current P/E of 39.5x looks rich next to a fair ratio of 28.5x and the US Software average of 25.4x, as well as a peer average at 63.4x. That mix of signals raises a simple question for you: is the quality premium here comfortable or a stretch given the recent earnings wobble?

See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

All of this paints a mixed picture, so if you have a view on Bentley Systems it helps to move quickly and check the underlying numbers for yourself. To see how the balance of concerns and potential upsides really looks, take a moment to review the detailed breakdown of 3 key rewards and 2 important warning signs.

Looking for more investment ideas?

If Bentley Systems is on your radar, do not stop there. The real edge comes from lining it up against a wider watchlist of strong alternatives.

• Target potential mispricings by checking our list of 54 high quality undervalued stocks that combine solid fundamentals with prices that may not fully reflect their strengths.
• Lock in more dependable cash flows by reviewing income ideas across our 15 dividend fortresses, built for investors who care about payout strength and resilience.
• Prioritise resilience by scanning companies in the 87 resilient stocks with low risk scores, where balance sheets and risk scores can help you sleep better at night.

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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