Bill.com Holdings, Inc. (BILL)
Valuation Overview•Is Bill.com Holdings, Inc. Overvalued or Undervalued?
Commands a premium valuation multiple over its peers, likely pricing in superior execution.
Moderate quality score of 57/100, reflecting stable operating margins and manageable leverage.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street is highly bullish, projecting significant upside. This outlook is strongly supported by highly attractive capital returns, driven predominantly by aggressive share repurchases.
Returns capital exclusively via buybacks — no active dividend
BILL demonstrates adequate business quality with stable profitability. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company is driving exceptional top-line expansion (31.6% 3Y CAGR) paired with stable bottom-line earnings. However, profitability remains a major concern with severely compressed operating margins (-3.5%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $406.6M | +13.4% | +31.6% | +56.1% | — | |
| EBITDA | $33.0M | — | — | — | — | |
| Net Income | $12.8M | +182.4% | — | — | — | |
| EPS (Diluted) | $0.12 | +185.2% | — | — | — | |
| Free Cash Flow | $128.5M | +20.1% | — | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 80.7% | 81.6% | 79.3% | 76.8% |
| Operating Margin | -3.5% | -15.7% | -28.8% | -23.4% |
| Net Margin | 0.0% | -7.2% | -22.8% | -18.9% |
| FCF Margin | 23.9% | 18.7% | 8.7% | 1.2% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.55 | $0.68 | +23.6% | ||
| Q1'26 | $0.56 | $0.64 | +14.3% | ||
| Q4'25 | $0.51 | $0.61 | +19.1% | ||
| Q3'25 | $0.41 | $0.53 | +29.3% | ||
| Q2'25 | $0.37 | $0.50 | +35.1% | ||
| Q1'25 | $0.43 | $0.56 | +30.2% | ||
| Q4'24 | $0.51 | $0.63 | +23.5% | ||
| Q3'24 | $0.46 | $0.57 | +23.9% |
Total return is -23.9% (1Y), lagging the benchmark by -48.9%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -35.8% | -45.1% | — |
| 1Y | -23.9% | -48.9% | — |
| 3YCAGR | -33.8% | -53.5% | — |
| 5YCAGR | -28.9% | -41.0% | — |
| 10YCAGR | -0.9% | -14.6% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Bill.com Holdings, Inc. (BILL) valuation, health, and returns.
Bill.com Holdings, Inc. is estimated to be fair under our discounted cash flow framework. relative multiples indicate the stock is Expensive versus peers compared to industry peers. trading near fair value (DCF: $35.84)
Bill.com Holdings, Inc. has multiple valuation anchors: DCF Intrinsic Value: $35.84 | Peer Relative Fair Value: $18.08 | Wall Street Analyst Target: $51.56 (implying +58.8% upside). A convergence of these signals offers higher conviction.
Bill.com Holdings, Inc. displays fair financial health with a composite quality score of 57/100, supported by a Altman Z-Score of 0.4 (distress zone), Piotroski F-Score of 7/9, Return on Invested Capital (ROIC) of -1.4%.
Bill.com Holdings, Inc. returns capital via buybacks instead of dividends, carrying a 13.3% buyback yield and reducing outstanding shares by -2.1% in the last 12 months.
Bill.com Holdings, Inc.'s current growth trajectory is Decelerating. The company achieved +13.4% 1Y revenue growth and +185.2% 1Y EPS growth, compared to its 3Y revenue CAGR of +31.6%.
Wall Street consensus is Buy based on 32 analysts, beating EPS expectations in 100% of recent quarters with a 17-quarter streak. The consensus price target represents a +58.8% change from current levels.
Investment risks for Bill.com Holdings, Inc. include: -42.9% 1-year max drawdown, high beta (1.80x market volatility), elevated distress risk. Volatility risk is characterized by a beta of 1.80x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.