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Is ServiceTitan (TTAN) Below Fair Value On Earnings And New Guidance?

Simply Wall St · 1d ago

ServiceTitan (TTAN) is back in focus after its latest quarterly results showed higher revenue and a narrower net loss, while new guidance and a leadership transition added fresh variables for investors to weigh.

The share price reaction has been sharp. ServiceTitan is trading at US$81.58 after a 1-day share price return that declined 7.21% and a 7-day share price return down 14.53% following the earnings, guidance, and CRO transition headlines.

The 90-day share price return is up 14.27%. However, the year-to-date share price return is down 19.70%, and the 1-year total shareholder return has fallen 31.80%, which points to fading momentum despite the recent operational updates.

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After a 1-year slide and a sharp post earnings drop, ServiceTitan now trades at a sizeable discount to both analyst targets and some intrinsic value estimates. Is that market caution well founded, or has pricing swung too far?

Most Popular Narrative: 25.8% Undervalued

Against the last close of $81.58, the most widely followed narrative for ServiceTitan points to a fair value of $109.93, which implies a sizeable valuation gap that hinges on specific growth and margin assumptions.

Long term shift in the trades toward data driven and automated operations, coupled with ServiceTitan’s entrenched role as the system of action and ecosystem hub, should reinforce pricing power and help expand operating margins as R&D and go to market spend scales more slowly than revenue.

Read the complete narrative. Read the complete narrative.

Want to understand why that fair value sits well above today’s price? The narrative leans on compound revenue expansion, a sharp swing in profitability, and a premium future earnings multiple. Curious which specific growth path and margin profile need to line up for that to work?

Result: Fair Value of $109.93 (UNDERVALUED)

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

Still, the fair value story for ServiceTitan could unravel if AI and Max adoption fail to deliver clear customer ROI, or if fintech and payments face regulatory or economic setbacks.

Find out about the key risks to this ServiceTitan narrative.

Another View: What Multiples Say About ServiceTitan

There is a different read on ServiceTitan when you move away from fair value models and look at simple sales multiples. The stock trades on a P/S of 7.7x, which is higher than the US Software industry average of 4x and above an estimated fair ratio of 5.7x.

That gap suggests the market is already paying a premium versus the broader sector, even though the fair ratio points to a lower level that prices could gravitate toward over time. For anyone weighing the recent share price slide against longer term narratives, the key question is whether that premium survives if sentiment on growth or software valuations cools again.

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

NasdaqGS:TTAN P/S Ratio as at Sep 2026
NasdaqGS:TTAN P/S Ratio as at Sep 2026

Next Steps

Mixed feelings about ServiceTitan after reviewing all this data and narrative detail. Use the full risk and reward breakdown to stress test your own thesis quickly with 4 key rewards and 2 important warning signs

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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.