Five9 (FIVN) is back in focus after Regal integrated its autonomous AI voice agents into the Five9 AI Agent Connect program, alongside fresh quarterly results and updated guidance that give investors more operational detail.
Over the past year, Five9 has seen a strong 75.44% year to date share price return and a 30 day share price return of 29.01%. However, the 3 year total shareholder return is down 53.31%, which suggests recent momentum has picked up following the Regal integration and earnings update.
If the recent AI voice integration caught your attention, it may be a good time to scan the wider opportunity set through the Simply Wall St screener for 75 profitable AI stocks that aren’t just burning cash
Five9 has just delivered a sharp rebound and fresh AI news, yet the stock is still well below its 3 year highs. Is this the moment to lean into the reset, or does patience on the entry price make more sense?
Most Popular Narrative: 12.4% Overvalued
The most followed narrative for Five9 places fair value at $29.35 compared with the last close of $33. This frames the current rally against a model that blends revenue growth, margin expansion and a specific discount rate of 9.49%.
Five9’s accelerated adoption of AI driven solutions highlighted by 42% Enterprise AI revenue growth and a surge in AI bookings (representing over 20% of Enterprise new ACV) positions the company to benefit from increasing enterprise investment in AI and automation for customer experience, supporting higher recurring revenues and expanded net margins as AI products command premium pricing.
Want to see what is sitting behind that confidence in AI driven revenue streams? The narrative leans heavily on compounding earnings, firmer margins and a lower future earnings multiple than many investors might expect.
Result: Fair Value of $29.35 (OVERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, Five9 still faces competitive pressure from larger software providers and ongoing executive turnover, which could unsettle customer demand and weaken the AI-driven growth narrative.
Another View on Five9 Using Cash Flows
The first narrative around Five9 leans on analyst targets and earnings multiples, which point to a modest 12.4% overvaluation at $33. In contrast, the Simply Wall St DCF model suggests Five9 is trading well below its estimated future cash flow value of $74.68 and looks undervalued.
That is a wide gap between an earnings based view and a cash flow model. The key question is which set of assumptions you trust more for a contact center AI stock like this.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Five9 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 52 high quality undervalued stocks. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.
Next Steps
After weighing both the optimism around Five9’s AI potential and the concerns flagged in recent results, it makes sense to move quickly and test the data for yourself. To balance both sides of the story, start by reviewing the 3 key rewards and 2 important warning signs.
Looking for more ideas beyond Five9?
If you stop with Five9, you risk missing other opportunities that fit your style. Use the Simply Wall St screener to quickly surface focused shortlists.
- Target potential mispricing by scanning high quality companies that look cheap on fundamentals with the 52 high quality undervalued stocks.
- Strengthen your portfolio core by filtering for businesses with resilient finances through the solid balance sheet and fundamentals stocks screener (51 results).
- Spot underfollowed opportunities early by checking the screener containing 20 high quality undiscovered gems before the crowd catches on.
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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About NasdaqGM:FIVN
Five9
Provides intelligent cloud software for contact centers in the United States and internationally.
Flawless balance sheet with reasonable growth potential.
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