Manhattan Associates (MANH) has been drawing attention after a mixed stretch in its share performance, with the stock showing modest recent moves but a weaker past 3 months and 1 year total return.
For investors, that contrast sits alongside current fundamentals, including annual revenue of US$1,066.8m and net income of US$216.0m, as they assess how the business is currently being valued in the market.
See our latest analysis for Manhattan Associates.
At a share price of US$173.70, Manhattan Associates has seen its short term share price momentum cool, with a roughly 12% share price decline over the past 90 days. The 1 year total shareholder return of about a 36% decline contrasts with a 3 year total shareholder return of about 43%, which hints that longer term holders have still seen meaningful gains even as recent sentiment has softened.
If you are comparing Manhattan Associates with other software names, it could be a good moment to scan the market for other high growth tech and AI opportunities through high growth tech and AI stocks.
So with recent returns under pressure but analysts assigning higher price targets and some investors flagging an intrinsic discount, is Manhattan Associates quietly undervalued right now, or is the market already taking future growth into account?
On a P/E of 48.5x at a last close of US$173.70, Manhattan Associates screens as expensive compared with peers and its own estimated fair level.
The P/E ratio compares the company’s share price to its earnings per share and is a common way investors gauge how much they are paying for each dollar of profit in the software space. For a business with high quality earnings and strong profitability metrics, a higher P/E often reflects expectations that those profits will continue.
Here, Manhattan Associates trades on a P/E of 48.5x, compared with a US software industry average of 32.7x and a peer average of 41x. This suggests the market is paying a premium relative to sector norms. It is also above an estimated fair P/E of 31.3x, which indicates a level the market could potentially move toward if sentiment or growth expectations were to cool.
Explore the SWS fair ratio for Manhattan Associates
Result: Price-to-Earnings of 48.5x (OVERVALUED)
However, that premium P/E could come under pressure if the 36% 1 year total return decline signals deeper concerns, or if revenue and net income growth rates ease.
Find out about the key risks to this Manhattan Associates narrative.
While the 48.5x P/E suggests Manhattan Associates looks expensive versus peers and its own fair ratio, our DCF model points the other way, with an estimated fair value of US$252.07 per share versus the current US$173.70. On that basis, the shares screen as undervalued. Which signal matters more to you: the earnings multiple or the cash flow math?
Look into how the SWS DCF model arrives at its fair value.
MANH Discounted Cash Flow as at Jan 2026
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Manhattan Associates for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 872 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.
If you look at the numbers and reach a different conclusion, or simply want to test your own assumptions, you can build a personalised view in just a few minutes, starting with Do it your way.
A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Manhattan Associates.
If Manhattan Associates has sharpened your thinking, do not stop here. Use the screener to pinpoint other opportunities that match how you like to invest.
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 MANH.
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