Vertex (VERX): Valuation Check After Expanded AI Tax Compliance Partnership With CPA.com
Vertex (VERX) has expanded its long-running partnership with CPA.com, rolling out an AI-powered sales tax compliance platform built with Kintsugi. The move directly targets accounting firms looking to automate complex, recurring tax workflows.
See our latest analysis for Vertex.
Despite solid revenue growth and the new AI collaboration with CPA.com and Kintsugi, Vertex’s 90 day share price return of minus 24.1 percent and 1 year total shareholder return of minus 65.05 percent suggest sentiment has cooled. However, the 3 year total shareholder return of 26.64 percent hints that longer term holders are still ahead overall.
If this AI tax story has you rethinking where software growth could come from next, it might be worth exploring high growth tech and AI stocks for other potential opportunities in the space.
With revenue still growing double digits and shares trading roughly 40 percent below analyst targets, investors now face a pivotal question: Is Vertex a misunderstood AI tax winner in waiting, or is the market already pricing in its future growth?
Most Popular Narrative: 29.4% Undervalued
With Vertex last closing at $19.68 versus a narrative fair value near $27.86, the story leans toward a significant upside if the projections play out.
Significant near-term acceleration is expected as regulatory mandates for e-invoicing begin in major European economies like France and Germany in 2026-2027, forcing multinational enterprises to adopt advanced tax automation solutions. This dynamic is presented as a potential driver of robust new customer wins and recurring revenue expansion for Vertex.
Curious how this narrative turns regulatory deadlines and cloud migrations into a sharply higher profit profile and premium future multiple? Want to see the exact roadmap behind that fair value?
Result: Fair Value of $27.86 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, lingering execution risks around the CEO transition and slower than hoped ARR momentum could easily derail the market’s recovery narrative.
Find out about the key risks to this Vertex narrative.
Build Your Own Vertex Narrative
If this perspective does not fully align with your own view, or you prefer to dig into the metrics independently, you can build a customized thesis in just a few minutes: Do it your way.
A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Vertex.
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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.
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