Executive appointment and why it matters for CRA International (CRAI)

CRA International (CRAI) has brought in Margaret (Peggy) Loudermilk as a Vice President in its Antitrust & Competition Economics Practice, following her senior role at the U.S. Department of Justice’s Antitrust Division.

For investors, this kind of hire often prompts a closer look at how the firm’s antitrust and regulatory capabilities align with its current revenue base of US$731.1m and net income of US$56.5m.

At a share price of US$188.94, CRA International has seen a 5.94% 1 day share price gain after a weaker recent patch that included a 9.62% 7 day and 5.78% 30 day share price decline. Its 1 year total shareholder return of 4.05% and very large 5 year total shareholder return suggest long term holders have still been rewarded even as near term momentum has faded.

If this kind of regulatory expertise interests you, it could be a good moment to widen your search and check out fast growing stocks with high insider ownership.

With CRA International trading at US$188.94 against an analyst price target of US$252.50 and an indicated intrinsic discount of about 38%, you have to ask: is this a genuine value opportunity, or is the market already factoring in future growth?

Most Popular Narrative: 25.2% Undervalued

With CRA International last closing at $188.94 against a narrative fair value of $252.50, the current price sits well below those assumptions.

The surge in global regulatory complexity and heightened enforcement, especially in antitrust, is driving robust and sustained demand for CRA's advisory services, as evidenced by record performance in their Antitrust & Competition Economics practice; this is likely to support higher long-term revenue growth.

Curious what kind of revenue path, margin profile, and future earnings multiple need to line up for that fair value to hold? The core assumptions behind this narrative tie steady growth, disciplined profitability, and a richer future valuation together in a very specific way. The full piece breaks down exactly how those moving parts connect.

Result: Fair Value of $252.50 (UNDERVALUED)

However, the story could change if global M&A and antitrust work slow, or if competition for specialist talent pushes compensation higher than CRA International can pass through in fees.

Build Your Own CRA International Narrative

If you look at the numbers and reach a different conclusion, or simply prefer to test your own assumptions, you can build a custom view in just a few minutes with Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding CRA International.

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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.