Is It Time To Reassess Intuit (INTU) After A 31.7% One Year Share Price Slide

• Are you wondering whether Intuit at around US$416 per share still makes sense for your portfolio, or if the recent price leaves too little potential upside?
• The stock has seen a 1.8% return over the past 30 days, compared with a much steeper 8.9% decline over the last week and a 31.7% drop over the past year. These moves can influence how the market views both its potential and its risks.
• Recent attention on Intuit has focused on its position as a core software provider to individuals and small businesses, along with ongoing interest in how tax and accounting software usage trends might affect longer term expectations for the company. This backdrop helps frame the sharp year to date decline of 33.8% and the modest 3 year decline of 3.6%.
• Right now, Intuit earns a valuation score of 5 out of 6, which suggests most of our checks view the shares as undervalued. The rest of this article will walk through the key valuation approaches, then finish with a broader way to think about what that score may mean for you.

Find out why Intuit's -31.7% return over the last year is lagging behind its peers.

Approach 1: Intuit Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow model estimates what a business could be worth by projecting its future cash flows and then discounting them back to today’s dollars. For Intuit, the model used here is a 2 Stage Free Cash Flow to Equity approach, which starts with recent free cash flow and then applies forecasts and longer term projections.

Intuit’s latest twelve month free cash flow is about $6.76b. Analyst and extrapolated projections, expressed in today’s money, show discounted free cash flows ranging from about $6.85b in 2026 to $7.77b in 2030, with additional extrapolated values through 2035. Using these cash flows, the model arrives at an estimated intrinsic value of about $773.81 per share.

Compared with the current share price of around $416, the DCF output suggests the shares trade at a 46.2% discount to this estimate. This points to Intuit being undervalued on this specific cash flow based view.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Intuit is undervalued by 46.2%. Track this in your watchlist or portfolio, or discover 62 more high quality undervalued stocks.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Intuit.

Approach 2: Intuit Price vs Earnings

For a profitable business like Intuit, the P/E ratio is a useful way to think about what you are paying for each dollar of current earnings. It ties the share price directly to earnings today, which many investors see as a core anchor for valuation.

What counts as a “normal” P/E often reflects how the market views a company’s growth potential and risk. Higher growth and lower perceived risk can justify a higher multiple, while slower growth or higher uncertainty can point to a lower one.

Intuit currently trades on a P/E of 26.54x. That sits below the Software industry average of 28.21x and well below the peer group average of 42.24x. Simply Wall St’s Fair Ratio for Intuit is 35.53x, which is the P/E level suggested by its combination of earnings growth profile, industry, profit margins, market cap and risk factors. This tailored Fair Ratio is more informative than simple peer or industry comparisons because it adjusts for the company’s own characteristics rather than assuming all software names deserve the same multiple. Compared with the Fair Ratio, Intuit’s current 26.54x P/E indicates that the shares are trading at a lower level than this model would imply.

Result: UNDERVALUED

P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 20 top founder-led companies.

Upgrade Your Decision Making: Choose your Intuit Narrative

Earlier the article mentioned that there is an even better way to understand valuation. This is where Narratives come in, giving you a simple way to connect your view of Intuit’s story to a forecast and then to a fair value that you can compare with today’s price.

A Narrative on Simply Wall St is the story you believe about a company, written into numbers like future revenue, earnings, margins and a fair value, so the discussion is not just opinions but tied directly to a financial model.

On the Community page, many investors use Narratives as an accessible tool to set their own assumptions, see the fair value those assumptions imply, and then compare that fair value with the current Intuit share price to decide whether the stock appears expensive, cheap or roughly in line with their expectations.

Because Narratives update as new information such as earnings, price moves or news is added, your fair value view can adjust automatically instead of sitting in a static spreadsheet.

For Intuit, one investor Narrative currently anchors on a fair value of about US$330 per share while another points to around US$843. That wide range shows how different views on AI, mid market adoption or margins can coexist, giving you a clear spectrum of expectations to measure your own stance against.

Do you think there's more to the story for Intuit? Head over to our Community to see what others are saying!

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com