Assessing Booz Allen Hamilton’s (BAH) Valuation After a Year of Share Price Weakness

Booz Allen Hamilton Holding (BAH) has been drifting lower this year, with the stock down about 32% year to date and roughly 34% over the past year, despite modest revenue growth.

See our latest analysis for Booz Allen Hamilton Holding.

That slide has left Booz Allen with a 1 year total shareholder return of about negative 34%, and a negative 3 year total shareholder return, even though the 1 month share price return has turned positive. This suggests sentiment may be stabilising rather than collapsing.

If this shift in momentum has you rethinking your options in the sector, it is worth exploring other aerospace and defense stocks that might offer a different balance of growth and resilience.

So with the shares now trading well below analyst targets despite steady revenue, is Booz Allen quietly drifting into undervalued territory, or is the market already discounting any future growth that might lie ahead?

Most Popular Narrative: 14.7% Undervalued

With the narrative fair value at $101.50 versus a last close of $86.55, the valuation case leans supportive, not euphoric, and rests on specific long term assumptions.

Analysts are assuming Booz Allen Hamilton Holding's revenue will grow by 4.1% annually over the next 3 years. Analysts assume that profit margins will shrink from 8.7% today to 5.7% in 3 years time.

Read the complete narrative.

Curious how modest growth, thinner margins, and a richer future earnings multiple can still add up to upside from here? See which expectations power this fair value call.

Result: Fair Value of $101.50 (UNDERVALUED)

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

However, persistent federal funding delays and intense competition for complex tech contracts could cap revenue growth and pressure margins, which may challenge the current undervaluation thesis.

Find out about the key risks to this Booz Allen Hamilton Holding narrative.

Build Your Own Booz Allen Hamilton Holding Narrative

If you would rather dig into the numbers yourself and challenge these assumptions, you can quickly build a custom view in just minutes: Do it your way.

A great starting point for your Booz Allen Hamilton Holding research is our analysis highlighting 2 key rewards and 3 important warning signs 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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