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Pitney Bowes (PBI): Revisiting Valuation After a Strong Multi‑Year Share Price Run

Simply Wall St · 2d ago

Pitney Bowes (PBI) has quietly outperformed many small caps this year, and that recent climb is catching investors attention. With the share price up sharply and fundamentals mixed, the setup invites a closer look.

See our latest analysis for Pitney Bowes.

At a share price of $10.55, Pitney Bowes has stacked up a strong year to date, with a 46.12% year to date share price return and a standout 212.32% three year total shareholder return. This suggests momentum is still broadly on its side despite some recent volatility.

If Pitney Bowes has you rethinking where the next big movers might come from, now is a good moment to explore fast growing stocks with high insider ownership.

With Pitney Bowes trading at a steep discount to analyst targets yet boasting hefty multi year returns, investors face a dilemma: is the market still underestimating its earnings power, or already pricing in the next leg of growth?

Most Popular Narrative Narrative: 18.8% Undervalued

With Pitney Bowes closing at $10.55 against a narrative fair value of $13, the valuation case leans positive and hinges on future earnings power.

The analysts have a consensus price target of $17.0 for Pitney Bowes based on their expectations of its future earnings growth, profit margins and other risk factors.

In order for you to agree with the analyst's consensus, you would need to believe that by 2028, revenues will be $1.9 billion, earnings will come to $348.2 million, and it would be trading on a PE ratio of 9.1x, assuming you use a discount rate of 8.6%.

Read the complete narrative.

Curious how shrinking top line expectations can still coexist with sharply higher profits and a lower future earnings multiple than today? The full narrative unpacks a tightly engineered margin story, bold EPS compounding, and a valuation reset that challenges how the market currently prices Pitney Bowes.

Result: Fair Value of $13 (UNDERVALUED)

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

However, structural mail decline and high leverage could quickly overwhelm margin gains and derail earnings progress if SaaS growth or refinancing plans disappoint.

Find out about the key risks to this Pitney Bowes narrative.

Build Your Own Pitney Bowes Narrative

If these assumptions do not quite match your view, or you would rather dig into the data yourself, you can build a tailored narrative in just a few minutes, Do it your way.

A great starting point for your Pitney Bowes 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.