On August 27, 2026, NICE Ltd NICE shares increased by 3.9%, reaching a current price of $105.09. This price is situated between its 52-week low of $83.10 and its high of $153.68, indicating a notable volatility over the past year.
- GF Valueâ„¢ verdict: NICE is currently trading at $105.09, 58.1% below its GF Valueâ„¢ estimate of $251.00, indicating significant undervaluation.
- GF Scoreâ„¢: The company holds a strong GF Scoreâ„¢ of 81/100, suggesting solid fundamentals and growth potential.
- Most notable signal: Insider activity has shown a net selling of $0.1 million over the past year, with no buying activity noted.
Is NICE Overvalued or Undervalued?
NICE's current price of $105.09 presents a compelling case for undervaluation when juxtaposed with the GF Valueâ„¢ estimate of $251.00. This disparity highlights a substantial margin of safety of 58.1%, suggesting that the stock is significantly undervalued at this price point. The GF Valuation label indicates that NICE is "Significantly Undervalued," which points to potential opportunities for investors looking for stocks with solid fundamentals trading at a discount.
GF Valueâ„¢ is GuruFocus' proprietary estimate of intrinsic value, derived from an analysis of historical trading multiples, historical business growth, and expectations for future performance. This valuation method provides a comprehensive look at what the stock should be worth based on various financial metrics, making NICE's current valuation particularly appealing.
How Does NICE's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 15.3x | 48.9x |
| Forward P/E | 9.4x | N/A |
NICE's current P/E ratio of 15.3x stands in stark contrast to its 5-year median P/E of 48.9x, indicating that it is trading approximately 69% below its historical average. This analysis aligns with the GF Valueâ„¢ verdict of being undervalued, suggesting that NICE is not only a compelling investment based on intrinsic value but also based on historical valuation metrics.
What Does NICE's GF Scoreâ„¢ Tell Us?
The GF Scoreâ„¢ serves as a comprehensive gauge of a company's financial health and growth potential, taking into account various factors such as profitability, financial strength, growth, valuation, and momentum. With a robust GF Scoreâ„¢ of 81/100, NICE demonstrates strong fundamentals, characterized particularly by its profitability and growth ranks.
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 81/100 |
| Financial Strength | 7/10 |
| Profitability | 10/10 |
| Growth | 10/10 |
| Valuation | 2/10 |
| Momentum | 2/10 |
NICE's strongest areas lie within profitability and growth, each scoring a perfect 10/10, indicating that the company has successfully maintained high margins and is expected to grow. However, its valuation and momentum ranks are notably weaker at 2/10, suggesting that while the company has great potential for growth, its current market performance and valuation metrics appear less favorable.
What Are Gurus and Insiders Doing with NICE?
Currently, 8 gurus hold NICE stock, with 4 increasing their positions and 7 trimming their holdings in recent quarters. This mixed sentiment among institutional investors reflects a cautious approach towards the stock, considering its performance over the past year.
From an insider perspective, the activity indicates a net selling of $0.1 million over the past 12 months, with no insider purchases reported. This pattern of selling could suggest a lack of confidence among insiders regarding short-term growth prospects, which may be a point of concern for investors assessing the stock's future.
What This Means for Investors
Based on the GF Valueâ„¢ assessment, NICE Ltd NICE appears to be significantly undervalued at its current price of $105.09, with a substantial upside potential as indicated by its GF Valueâ„¢ of $251.00. However, the mixed signals from guru activity and insider selling suggest that investors should proceed with caution, balancing potential opportunities against perceived risks. For a detailed analysis, visit the NICE Ltd (NICE) stock page for further insights.
Frequently Asked Questions
What is NICE's GF Scoreâ„¢?
NICE has a GF Scoreâ„¢ of 81/100, indicating strong fundamentals and growth potential relative to its peers.
Is NICE overvalued or undervalued?
NICE is currently undervalued, trading at $105.09, which is 58.1% below its GF Valueâ„¢ estimate of $251.00.
What is NICE's P/E ratio?
NICE's P/E ratio is 15.3x, significantly lower than its 5-year median P/E of 48.9x, indicating that it is trading at a discount to its historical valuation metrics.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
