Manhattan Associates (MANH) is back on investors’ radar after a noticeable pullback this year, prompting renewed discussions about its true value and prospects. While there was not a single headline-grabbing event to spark the slide, the recent movement in the share price has been hard to ignore for anyone weighing their next move with the stock. For those following Manhattan Associates, the story now seems less about major surprises and more about whether the market is recalibrating its expectations for future growth. Looking at the bigger picture, Manhattan Associates has posted reliable revenue and net income growth over the past year, growing both metrics at a steady clip. Still, its share price tells a contrasting tale, sliding nearly 17% over the past year despite a strong three- and five-year performance. Short-term momentum appears mixed, with a decent bounce over the past month and quarter, but fading compared to the highs seen in previous years. With the stock drifting lower this year even as the business itself seems to keep improving, the big question now is whether Manhattan Associates is trading at a bargain compared to its long-term potential or if investors are rightly cautious about what lies ahead.

Most Popular Narrative: 5% Undervalued

According to the most popular narrative, Manhattan Associates is undervalued by about 5%. This reflects analysts' belief that the company's long-term earnings and margin progression could outpace current market expectations given ongoing technology shifts.

Enhanced investments in AI, automation, and unified product development (such as Agentic AI and the Manhattan Active Agent Foundry) position Manhattan to capture increasing customer demand for real-time analytics and next-generation supply chain automation. This could potentially drive new bookings, average contract value, and expansion into underpenetrated markets, supporting sustainable double-digit top-line growth.

Want to discover the secret sauce behind Manhattan Associates’ high valuation call? The narrative hinges on ambitious projections for both the company’s top and bottom line. There are bold assumptions baked into this fair value target. Are they realistic or wishful thinking? The answers just might surprise you.

Result: Fair Value of $227.89 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, cloud migration delays and services revenue volatility could quickly challenge even the most optimistic long-term views on Manhattan Associates’ future growth.

Find out about the key risks to this Manhattan Associates narrative.

Another View: What Do Other Valuation Methods Say?

While the most popular approach pegs Manhattan Associates as undervalued, taking a fresh look using our DCF model reveals only a slight disconnect between price and fair value. It is possible that the real answer lies somewhere in the middle.

Stay updated when valuation signals shift by adding Manhattan Associates to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Manhattan Associates Narrative

If you have a different perspective or want to dig deeper into Manhattan Associates’ story, you can create your own narrative in just a few minutes. Do it your way.

A great starting point for your Manhattan Associates research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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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.