Extreme Networks (EXTR) is in focus after launching a suite of E-Rate eligible networking solutions for K 12 schools and libraries, anchored by its AI powered Extreme Platform ONE, an all in one networking platform.

At a share price of US$15.24, Extreme Networks has recorded a 4.53% share price return over the past 7 days. Its 90 day share price return shows a 14.91% decline, and its 1 year total shareholder return shows a 0.97% decline, indicating recent momentum has been weak. This contrasts with its longer term 5 year total shareholder return of 57.28%.

If this education focused AI news has you thinking about where else intelligent networking is taking hold, our screener of 33 AI infrastructure stocks is a practical way to spot other potential candidates.

With the shares down over the past year but still ahead over five years, and trading below some intrinsic and analyst value estimates, the real question is whether Extreme Networks is mispriced today or whether the market already reflects future growth.

Most Popular Narrative: 36.1% Undervalued

On the most followed narrative, Extreme Networks' fair value of $23.83 sits well above the last close at $15.24, which raises questions about how much future growth is built into that gap.

Successful roll out and growing adoption of AI powered Extreme Platform 1 and automated cloud management solutions position the company to capitalize on the acceleration of edge computing, automation, and AI driven networking, which should drive higher SaaS ARR growth, recurring revenue, and improved net margins.

Curious what kind of revenue mix, margin lift, and earnings ramp would need to stack up to support that valuation gap? The narrative leans on ambitious growth in recurring software income and a rich future profit multiple that is usually reserved for top tier communications names. The full story connects these assumptions into one detailed fair value roadmap.

Result: Fair Value of $23.83 (UNDERVALUED)

However, that roadmap could be knocked off course if large government contracts prove lumpy or if bigger rivals use their scale to pressure pricing and margins.

Build Your Own Extreme Networks Narrative

If you look at this and think the assumptions do not quite fit, or you would rather stress test the numbers yourself, you can build a fresh Extreme Networks story in just a few minutes and shape the inputs your way, all in one place with Do it your way.

A great starting point for your Extreme Networks research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

Ready for more investment ideas?

If Extreme Networks has sharpened your thinking, do not stop there. Widen your watchlist with a few more focused sets of ideas that could round out your research.

• Spot potential value setups before they move by scanning our list of 52 high quality undervalued stocks filtered for quality and pricing signals in one place.
• Prioritize resilience by checking companies in the 82 resilient stocks with low risk scores that score well on risk metrics and may help steady a volatile portfolio.
• Hunt for newer names that many investors might be overlooking with our screener containing 24 high quality undiscovered gems, where fundamentals, not headlines, drive the list.

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.