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Agilysys (AGYS): Revisiting Valuation After a Recent Share Price Pullback

Simply Wall St · 2d ago

Agilysys (AGYS) has quietly delivered strong multi year gains even as the stock has slipped this year, and that disconnect is exactly what has investors taking a fresh look at the story.

See our latest analysis for Agilysys.

At around $122.73, the recent pullback sits uneasily beside Agilysys impressive three year total shareholder return of over 50 percent, hinting that sentiment has cooled even as the longer term story remains firmly intact.

If this kind of resilient growth story has your attention, it could be a good moment to see what else is out there with fast growing stocks with high insider ownership.

With revenue and earnings still growing briskly, but the share price lagging and trading below analyst targets, the key question now is whether Agilysys is temporarily misunderstood or whether the market is already discounting all that future growth.

Most Popular Narrative: 13.6% Undervalued

With Agilysys last closing at $122.73 versus a narrative fair value of $142, the storyline leans toward upside built on powerful recurring growth.

The company's focused and increasingly differentiated AI driven enhancements (such as personalized upselling, dynamic pricing, and AI powered guest engagement tools) are expected to meaningfully elevate product value, drive upsell opportunities, and improve operational efficiency, positively impacting both revenue growth and net margins.

Read the complete narrative.

Curious how this shift to richer subscriptions, fatter margins, and a punchy future earnings multiple can still support that higher price tag? The details may surprise you.

Result: Fair Value of $142 (UNDERVALUED)

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

However, sustained cost inflation and any slowdown in hospitality demand could pressure margins and recurring revenue, challenging expectations built into that upbeat valuation story.

Find out about the key risks to this Agilysys narrative.

Another Take on Valuation

While the narrative fair value of $142 points to upside, a simple earnings based view tells a more cautious story. Agilysys trades on a steep 140.5 times earnings, versus about 34 times for peers and a fair ratio of 37.5 times, suggesting meaningful downside risk if sentiment cools.

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

NasdaqGS:AGYS PE Ratio as at Dec 2025
NasdaqGS:AGYS PE Ratio as at Dec 2025

Build Your Own Agilysys Narrative

If you see the story differently or simply want to dig into the numbers yourself, you can build a custom narrative in minutes: Do it your way.

A great starting point for your Agilysys research is our analysis highlighting 1 key reward and 2 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.