Context for Manhattan Associates after recent share performance
Manhattan Associates (MANH) has attracted fresh attention after a recent share pullback, with the stock down about 18% over the past month and 21% over the past 3 months.
See our latest analysis for Manhattan Associates.
That recent pullback sits within a tougher stretch for the stock, with a 7 day share price return of 2.74% decline and a year to date share price return of 16.54% decline, while the 1 year total shareholder return is 20.31% decline. Together, these figures suggest momentum has faded after earlier gains over the past five years.
If this kind of volatility has you looking further afield, it could be a good moment to broaden your watchlist with our screener of 19 top founder-led companies.
With Manhattan Associates now trading at $139.61, well below some intrinsic value and analyst estimates, the key question is whether this pullback leaves the stock undervalued or if the market is already pricing in future growth.
Most Popular Narrative: 12.7% Undervalued
At $139.61, the most followed narrative suggests Manhattan Associates trades below an estimated fair value of $160, with that gap shaped by detailed growth and margin assumptions.
The assumed bearish price target for Manhattan Associates is $176.29, which represents one standard deviation below the consensus price target of $205.11. This valuation is based on what can be assumed as the expectations of Manhattan Associates’s future earnings growth, profit margins and other risk factors from analysts on the more bearish end of the spectrum.
Curious what underpins that $160 fair value? The narrative leans on measured revenue growth, steady earnings expansion and a premium future earnings multiple. Want the full playbook behind those assumptions?
Result: Fair Value of $160 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, some analysts flag that slower cloud transitions and higher operating expenses could pressure margins, while any reset in warehouse automation demand may challenge the growth assumptions behind that $160 fair value.
Find out about the key risks to this Manhattan Associates narrative.
Another View: Is The P/E Ratio Sending A Different Signal?
That $160 fair value uses detailed growth and margin assumptions, but the market is also putting a P/E of about 38x on Manhattan Associates today. That is higher than the US Software industry at 25.8x and above its own fair ratio of 27.7x, even though it sits below peer levels of 56.2x.
In simple terms, you are looking at a company that screens cheaper than some peers, yet still carries a richer tag than the wider industry and the fair ratio the market could move toward. This raises a straightforward question for you as an investor: is that premium a risk you are comfortable paying for?
See what the numbers say about this price — find out in our valuation breakdown.
NasdaqGS:MANH P/E Ratio as at Feb 2026Next Steps
If the mixed signals in this article leave you undecided, take a closer look at the numbers yourself and decide where you stand. To frame the upside case more clearly, review the 4 key rewards that investors are currently watching.
Looking for more investment ideas?
Before you move on, use this pullback as a prompt to refresh your watchlist with a few new names that might fit your style and risk tolerance.
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.
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