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EXL’s new NVIDIA powered transaction models catch investor attention
ExlService Holdings (EXLS) is in focus after announcing it will embed NVIDIA’s Build Your Own Transaction Foundation Model developer example into its EXLerate.ai platform for financial institutions.
The move gives banks and other financial clients tools to train transformer based models on large volumes of transaction data, targeting use cases such as fraud detection, risk management, personalization and recommendation engines.
See our latest analysis for ExlService Holdings.
Despite the AI collaboration headlines, the stock’s short term share price return has been weak. The year to date share price is down 28% and the 1 year total shareholder return is down 38.17%, even though the 5 year total shareholder return is up 41.07%. This suggests recent momentum has faded compared with a stronger longer term record.
If this kind of AI focused update has your attention, it could be a good moment to scan a wider set of opportunities through our screen of 48 AI infrastructure stocks
With EXL’s shares down sharply over 1 year, but revenue and net income both growing around 10% annually and the stock trading at a discount to analyst and intrinsic estimates, is there mispricing here, or is the market already baking in future growth?
Most Popular Narrative: 28.9% Undervalued
At a last close of $29.67 versus a fair value narrative of $41.75, the current pricing sits well below what the most followed view implies.
The accelerated global adoption of AI and digital transformation in regulated industries is expanding the addressable market for ExlService, driving strong double-digit pipeline and growing annuity-like revenues; this trend supports sustained revenue growth and improved earnings visibility.
Curious what kind of revenue mix, margin profile and future earnings multiple need to line up to justify that gap between price and fair value? The full narrative lays out the growth, profitability and valuation bridge in a way that joins today’s $29.67 share price to a materially higher long term earnings run rate.
Result: Fair Value of $41.75 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, the AI led upside story can quickly be challenged if rising wage costs squeeze margins, or if tighter data regulations make cross border growth less profitable.
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Another View: Earnings Multiple Sends A Different Signal
The earlier fair value narrative points to EXL as undervalued, yet the current P/E of 18x sits above peers at 13.7x and only slightly below the US Professional Services average of 19.7x. At the same time, it lines up closely with a fair ratio of 18.8x. That mix hints at less obvious upside and more valuation debate than the discount story alone suggests. Which signal carries more weight for you?
See what the numbers say about this price — find out in our valuation breakdown.
NasdaqGS:EXLS P/E Ratio as at Jun 2026 Next Steps
With sentiment clearly mixed, this is a good moment to move quickly, review the full picture yourself, and decide how convincing those rewards really are by checking the 4 key rewards.
Looking for more investment ideas?
If EXL has sparked your curiosity, do not stop here. Broaden your watchlist now so you are not relying on a single stock or story.
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.
Companies discussed in this article include EXLS.
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