INTU在大跌后被低估，其低估值倍数和持续增长使其成为具有吸引力的长期买入标的。

Now, full transparency, I don't own into it stock in my personal portfolio and I am not buying it today as I make this video. However, this company is on my watch list and I have been following them for a few years now

and if you're a dividend growth investor or a value investor into its stock is looking pretty attractive on most metrics. So, first let's just start on the big picture. Over the long run, INT has proven to have very good returns in the market. In fact, even after selling off 56% from its all-time high, if we go back to its IPO back in 1993, the stock is up 14,857%, which is a 16.15% compound annual growth rate. And if we take the stock back to 2024, the total return was a 19.39% compound annual growth rate. That's well ahead of the broader market in that time.

And over the past decade, the stock has been on a fantastic tear of earnings growth. Adjusted earnings per share is up 536% over the past 10 years, which is a 20.86% compound annual growth rate. Now, this has slowed down a little bit over the past 3 years, but not that much. It's up 59% that time, which is an 18.59% compound annual growth rate.

And the company generates serious cash flows now. $ 8.62 billion of free cash flow over the trailing 12 months. That's up 41% year-over-year. Over the past 10 years, their free cash flow is up 97% which is a 26.75% compound annual growth rate.

And this is why at scale software companies like into it can be very attractive. They have super high margins and they have low capex. This is a capexike business. So all the profits they generate for the most part turn into free cash flow. That means they can reward shareholders with share repurchases and a growing dividend payment.

Over the trailing 12 months, they spent $5.53 billion in share repurchases, which if you're a long-term believer in the stock and you think it's at a low valuation right now, honestly, is a great deal.

As I mentioned, INT is a dividend growth stock, and that's a big part of their shareholder returns. They've been paying a quarterly dividend since 2011, and they've raised it every single year. The dividend has doubled over the past 5 years with a 15.26% compound annual growth rate. And the company just approved another dividend increase, which is a 15% increase from the prior year. And they have remaining authorization for $7.9 billion of additional share repurchases.

And if the company keeps growing their earnings and free cash flow like they have been, then this dividend payment is going to keep going up in the years to come. They have a 15% free cash flow payout ratio right now and a 29.5% earnings payout ratio. That's based on GAAP earnings per share.

And if you're a dividend investor who likes to optimize your yield on cost and entry point to the stock, this is the best time to buy into its stock in over 10 years. It's currently in the 98th percentile dividend yield with a 1.41% for 1% forward-looking dividend yield. And aside from the absolute low, which happened a few weeks ago on into it stock, there has never been a higher yield you could have bought the company. Even if you go back to 2011 when they started paying the dividend, it's always a 1% yield or less. Over the past 10 years, the median dividend yield has been 0.72%.

So, the stock is definitely in deep value territory and trading at a lower multiple than it ever has. That's true with earnings per share as well. Over the trailing 12 months, GAP earnings per share gives you a PE ratio of 20.8. This is the second lowest percentile over the past 10 years.

This is a reliable software company with very high margins and steady growth. Previously, software stocks have commanded a premium multiple in the market. Over the past 10 years, the median multiple for trailing 12 months P ratio is 48.27. This 20.8 multiple is historically low.

However, on a forward-looking basis, into it is expected to continue growing. It's currently trading at a 12.5 forward-looking P ratio. This is one of the lowest P ratios you could have bought the stock at in over 10 years. And I think you can make the argument that into it stock is in deep value territory.

So, I'm going to give you some thoughts of how you could value into it stock, what kind of returns you could see if you bought it here in the long run, assuming that the business continues to maintain, slowly grow, or even grow at its current rate. also give you an idea for price projections going forward.

So adjusted earnings per share over the trailing 12 months, it's $24.32. At today's price, that implies a 14.05 PE ratio. If we look over 10 years, the median multiple in that time for trailing 12 months adjusted earnings per share has been 37.08. So you can see the stock is currently trading 59% that implied fair value. If they return to the median multiple they usually trade at. This is the largest gap over the past 10 years and on an all-time basis this is a historically low valuation.

As you can see during 2020 and 2021 into it IT stock was trading well above its implied fair value. Even in 2025 it was trading above its fair value. And that's why even if you're buying a great company that's continually growing over time, you can't overpay for the stock because if sentiment switches up and growth doesn't accelerate to match that more premium multiple, you're going to see a sharp decline like you have with in it stock.

The sentiment has completely shifted on it and the broader software sector. They're no longer paying a premium multiple for software stocks. And while most investors are now scared off of the sector and into it stock for the long-term investor who does their homework and feels comfortable about the long-term prospects of into it, this could prove to be a great buying opportunity.

Because what you have to keep in mind is that the actual fair value and intrinsic value of in it continues to grow year after year after year. That's because their earnings and cash flow are growing year after year.

So going back to 2007 here, the median adjusted earnings per share trailing 12 months P ratio has been 30.7. And if in its stock were to return to that 30 times multiple, that would give it an implied fair value of $747, which would be $118% upside from here. And that would just be from a rerating of the multiple back to its historical median. You would then have the compounding of actual earnings growth underneath it.

From a dividend perspective, if we want to go back to 2011 when they initiated their dividend payment, the median dividend yield for Inuit stock in that time has been 0.88%. We're talking forward-looking dividend yield. It's currently 1.41% and that's prior to their new 15% dividend increase. And you can see that the company has been trading above that historical median for quite a while. But now it's at the largest discount since they've started paying their dividend. If they returned to that 0.88 88% median multiple. That would give it an implied fair value of $545, which would be 59% upside from here. Free cash flow is the most extreme metric to look at here for the value graph. As I mentioned earlier, their free cash flow growth has been outpacing all the other metrics. $3168 over the trailing 12 months. That's currently a 10.7 price to free cash flow multiple. And if we look all time on Inu IT stock back to 2007, the median price to free cash flow multiple has been 25.82. That makes into it stock today priced 57% below its implied fair value. If the company return to that median multiple, it would give an implied fair value of $817, which would be $139.5% upside from here. But again, into its stock is growing, making more free cash flow in the long run year-over-year. So the fair value is growing on top of that.

Now, I'm going to give you a price projection on into its stock given a base case where they don't get the multiple expansion back to the historical median. And then I'll give you an example of prices you could expect if they get a rerating higher. And this will be based on analysts expectations for earnings per share growth in the coming years.

So, right now, we're assuming a forward-looking P ratio of 12.7. So, we're using that as the target benchmark. So, just to outline this here, in 2028, analysts are expecting a consensus non-GAAP earnings per share for the year of $30.80. And if you apply a 12.7 multiple to that, so you're taking 30.8 * 12.7, that would give a projected price of $391.

So we're taking this all the way through through 2030. Now, it should be noted there's only three analyst estimates for earnings per share in 2030, at least according to my data. I'm sure we'll update as we get closer to it. The implied price projection by 2030 would be $511. That would be 47% upside from here, 10.4% annualized growth.

And again, this is assuming that in it IT stock does not get any rerating upwards. You're assuming that software stocks are going to stay trading at this low multiple while they're continually growing 10 to 20% a year. So that means that into it would be trading at significant discount to a lot of slower growth kind of consumer staple companies, things like Coca-Cola, Proctor and Gamble, PepsiCo.

And this rewriting downward has to do with investors being concerned about the long-term cash flows of software companies like into it. And that's up for you to determine in your analysis buying the stock. Do you think into it 5 or 10 years from now will be the same kind of business or will AI just completely erode all software companies? That's up for you to determine and that's why the stock is cheap.

However, if in it does get rerated even slightly higher, the returns could be very impressive. Let's say they trade at a 20p ratio, then that would give a 2030 price target of $85, which would be 132% upside from here. That's 24% annualized growth. That will likely be well ahead of the market. If they trade at 25 PE ratio, that would be a $1,72030 price target, which would be 190% upside. That'd be 31.2% 2% a year. And if they go back to the median historic of 30, that'd be $1,28 a share, 248% upside, 37.5% growth annualized.

That's part of the opportunity here with buying a stock that has sold off a ton and is in deep value territory relative to its historic multiples, especially when it's expected to continue growing at a high rate going forward. But what is Wall Street saying about into its stock? We're going to be taking a look at the latest 12-month price targets. This is coming right after their latest earnings report. We just got a bunch of new price targets. And part of the reason why the stock was going down is a lot of the price targets got lowered following this earnings report. We just had seven analysts lower their price targets. But for context, those two who raised the price target, both of them are still below the current stock price. As you can see, we have a $300 one when the current price is $357 and a $290 one. And most of the analysts who lowered the price targets, they were actually well above the current stock price. You had a prior one that was $450, lowered to 400, and we're talking a one-year out price target here. We have a 350 lowered to 300, 406 lowered to 380, 427 lowered to 415, 443 lowered to 408.

So overall, I'd say Wall Street is still pretty mixed on into its stock. I did read through the company's earnings report and the growth seems to be pretty good even with their outlook. They gave guidance for Q1 2027 and on the bottom line, so operating income and earnings per share, they're expecting pretty solid growth. Although GAAP earnings per share, they're only expecting 8 to 10% annually.

And one of the big reasons for that is that non-GAAP earnings per share excludes stockbased compensation. And a lot of these big software companies, they do a lot of stockbased compensation to incentivize their employees to stay with them in the long run. So that's excluding $521 million of stockbased compensation. So it's definitely something to consider and software stocks definitely are not getting away with that anymore.

That said, in recent years, into its share count is going down and they are ramping up share repurchases, so you should expect that to go down even more. Shares are down 2.5% year-over-year. So, they definitely are more than offsetting dilution from employee stockbased compensation.

But when you're analyzing into its stock, that's where you get the difference between the adjusted earnings per shares, the non-GAAP, and the GAP earnings per share.

The other thing that I noticed is that revenue growth is decelerating at into it. For the first quarter of fiscal 2027 in their guidance, they put 11% year-over-year growth. And here you can see for the full year, they're expecting 9 to 10% annual growth.

But in the big picture, the cash generation of into it is growing very strong for a mature company. 20% annual increases and they're actually guiding above that. That's pretty impressive at this multiple.

So overall in terms of valuation looking at IN it stock right now after earnings after it sold off this is probably one of the best times to buy into it IT stock in over a decade.