Truecaller (OM:TRUE B): Valuation Check After Family Protection Launch and Push Toward Subscription-Led Growth
Truecaller (OM:TRUE B) just rolled out its new Family Protection feature, turning scam defense into a shared family experience and quietly redefining how its app can drive engagement and recurring subscription revenue.
See our latest analysis for Truecaller.
Yet despite the promising Family Protection rollout and a continuing share buyback program, Truecaller’s 1 year total shareholder return is down about 61 percent, with a year to date share price return of roughly minus 63 percent. This signals that confidence and momentum are still rebuilding rather than roaring back.
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With shares down sharply but revenue and earnings still growing, and the stock trading at a steep discount to analyst targets, is Truecaller now mispriced upside, or simply reflecting tougher ad trends and slower future growth?
Most Popular Narrative Narrative: 62.3% Undervalued
With the narrative fair value near SEK 50.8 against a last close of SEK 19.17, the gap implies markets are deeply discounting Truecaller’s long term potential.
The ongoing pivot towards higher margin, recurring subscription revenue with notable acceleration on iOS (25% QoQ subscriber growth/50% YoY) and expansion of B2B offerings (Truecaller for Business, identity APIs) are diversifying revenue streams, lowering reliance on cyclical ad spend, and creating more stable, predictable cash flows and long term profit growth.
Want to see how this shift to subscriptions, B2B services, and richer margins translates into that fair value estimate? The narrative’s cash flow blueprint may surprise you.
Result: Fair Value of $50.83 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, a sharper slowdown in programmatic ad demand or sustained FX and tax headwinds could quickly cap margin expansion and challenge the undervaluation case.
Find out about the key risks to this Truecaller narrative.
Build Your Own Truecaller Narrative
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A great starting point for your Truecaller research is our analysis highlighting 3 key rewards and 2 important warning signs 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.
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