IDT (IDT) Launches ESIM Plans, Is It Still 9% Undervalued?

Why IDT stock is back in focus

IDT (IDT) has moved onto more investor watchlists after launching eSIM data plans inside its BOSS Revolution app. The product is aimed at international travelers looking to cut roaming costs.

The announcement sits alongside fresh data from NRSInsights, which reported a 1.1% year over year decline in August 2026 same store sales across the National Retail Solutions network. Together, these updates give readers two current touchpoints for assessing IDT’s broader ecosystem exposure.

The eSIM launch follows a strong run in IDT’s share price, with a 90-day share price return of 23.49% and a year-to-date gain of 34.41%. The 3-year total shareholder return of 197.15% points to momentum that has built over a longer period, even as the 1-year total shareholder return of 6.37% has been more muted.

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IDT now looks like a stronger telecom and fintech platform than its small cap suggests after the eSIM launch and NRS footprint, but are you paying a fair price for that story today or stretching on valuation?

Most Popular IDT Narrative: 9.4% Undervalued

With IDT last closing at $67.97 against a narrative fair value of $75, the story centers on whether cash generation and AI driven services can support that gap.

The company's intention to continue repurchasing shares and increasing dividends, backed by strong cash generation, suggests improved earnings per share (EPS) growth potential.

With ongoing subscription revenue growth and strategic investments in AI and digital channels, net2phone's future performance is expected to boost revenue and improve adjusted EBITDA margins.

Read the complete narrative.

Want to see what really underpins that $75 figure for IDT? The narrative leans on a careful mix of shrinking top line, firmer margins, and a richer future earnings multiple. Curious how those moving parts fit together without breaking the valuation math? The full story lays out the specific revenue, profit, and discount rate assumptions that have to line up.

Result: Fair Value of $75 (UNDERVALUED)

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

Still, IDT’s dependence on working capital in BOSS Money and its exposure to foreign exchange swings could quickly challenge the cash flow story backing that $75 narrative.

Find out about the key risks to this IDT narrative.

Another View on IDT’s Valuation

IDT may look 9.4% undervalued against the $75 fair value, yet the simple P/E story points in a different direction. The stock trades on 20.7x earnings compared with US Telecom at 20.8x, peers at 2.8x, and a fair ratio of 17.2x. That gap leans toward valuation risk rather than a clear bargain, so which signal do you put more weight on?

To pressure test that earnings multiple against real cash generation, it helps to step through how future profits and payouts stack up in detail, then compare them with other businesses on your watchlist. See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

If the mixed read on IDT leaves you torn between upside and risk, move quickly, review the numbers yourself, and then weigh the 2 key rewards and 2 important warning signs.

Looking for more ideas beyond IDT?

If IDT has sharpened your focus, now is the moment to expand your watchlist with other clear, data backed opportunities before the crowd catches on.

• Scan for potential bargains that pair quality with price discipline by zeroing in on our curated set of 31 high quality undervalued stocks.
• Build a payments oriented income stream by reviewing companies that aim to sustain yield and balance sheet support through the 6 dividend fortresses.
• Reduce portfolio stress by concentrating on businesses that score well on resilience and financial robustness using the 10 resilient stocks with low risk scores.

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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