Bill (BILL) Valuation Check as Activist Barington Pushes Cost Cuts and Strategic Alternatives

BILL Holdings (BILL) is back in the spotlight after activist shareholder Barington Capital publicly urged the board to cut costs and seriously evaluate strategic options, including a potential sale or merger.

See our latest analysis for BILL Holdings.

The activist push lands after a volatile stretch for shareholders, with a 30 day share price return of 17.8 percent but a one year total shareholder return of minus 38.2 percent. This suggests short term momentum is firming while the longer term story still needs rebuilding.

If this kind of activist interest has you thinking more broadly about opportunities in software and automation, it may be worth exploring high growth tech and AI stocks as potential next candidates for your watchlist.

With shares still trading at a steep discount to some valuation models, but growth clearly decelerating and profitability elusive, is BILL now an overlooked turnaround story or simply fairly valued for slower future expansion?

Most Popular Narrative: 8.7% Undervalued

Compared with BILL Holdings’ last close at $55.59, the most widely followed narrative points to a modest upside, anchored by a higher fair value estimate.

Launch of Supplier Payments Plus and broader ad valorem fee monetization is expected to increase BILL's transaction-based revenues and take rates, leading to improved revenue growth and expanding gross and operating margins over time.

Read the complete narrative.

Curious how modest margin gains and faster earnings growth can still justify a premium style valuation multiple, even after recent multiple compression, and why the discount rate barely moved? Dive in to see which growth levers, profitability assumptions, and capital allocation moves are doing the heavy lifting in this fair value math.

Result: Fair Value of $60.86 (UNDERVALUED)

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

However, softer SMB spending or fiercer competition from larger fintechs could cap transaction growth and margins and challenge the case for a rerating.

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

Build Your Own BILL Holdings Narrative

If you see the story differently or want to stress test the assumptions yourself, you can build a complete narrative in just a few minutes: Do it your way.

A great starting point for your BILL Holdings research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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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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