Assessing Veeva Systems (VEEV) Valuation After Recent Share Price Weakness

Veeva Systems (VEEV) is back in focus after recent trading left the stock about 18% lower over the past month and roughly 24% lower over the past 3 months, prompting fresh questions about its valuation.

See our latest analysis for Veeva Systems.

At a latest share price of $180.31, Veeva Systems has seen its short term momentum cool, with a 30 day share price return of 18.78% and a 90 day share price return of 23.51%. The 3 year total shareholder return of 9.21% contrasts with a 1 year total shareholder return of 20.14%, suggesting recent sentiment has softened after earlier gains.

If this pullback has you rethinking your exposure to healthcare software, it could be a good time to scan 27 healthcare AI stocks as potential alternatives or complements to Veeva Systems.

With the share price down sharply in recent months and an indicated 31% intrinsic discount, the key question now is whether Veeva Systems is trading below its underlying potential or whether the market has already factored in its future growth potential.

Most Popular Narrative: 41.6% Undervalued

Against Veeva Systems' last close of $180.31, the most followed valuation narrative points to a fair value of $308.63, built on detailed revenue and margin forecasts and discounted at 8.18%.

The digital transformation and cloudification of healthcare workflows continues to be a powerful industry tailwind, with Veeva's role as a system of record for life sciences companies further reinforced by strong customer demand, ongoing wins among the top 20 pharma, and increased willingness of large customers (due to greater interoperability with IQVIA) to consolidate more spend with Veeva, positively impacting both revenue growth and gross margin over time.

Read the complete narrative.

Curious what kind of revenue run rate and margin profile support that fair value, and how long earnings would need to compound to get there? The full narrative lays out specific growth assumptions, a step up in profitability, and the earnings multiple required to connect those forecasts to today’s $308.63 estimate.

Result: Fair Value of $308.63 (UNDERVALUED)

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

However, that upside view could be derailed if competitive pressure in Commercial intensifies or if heavy AI and product investments fail to generate the expected payoff.

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

Another View: Earnings Multiple Sends a Different Signal

Our model points to Veeva Systems trading about 31.1% below its fair value, yet the current P/E of 34.5x sits above the fair ratio of 30.7x and the Global Healthcare Services average of 29.5x. That mix of discount and premium raises a simple question: which signal do you trust more?

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

Next Steps

With sentiment clearly divided in this piece, it is worth looking at the underlying numbers yourself and deciding where you stand. If you want to see what the optimism is built on, take a closer look at the 4 key rewards and weigh those positives against your own expectations.

Looking for more investment ideas?

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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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