2 models fit Vertex Inc. Class A Common Stock and they disagree: 0 of 2 land within 15% of the average. The price is above every model.
Two or more of our models back this value.
Large premium(i)Bronze56
Valued as a growth company: Discounted cash flow, P/E comparison, and EV/EBITDA comparison.
ACCE opinionVertex Inc. Class A Common Stock (VERX)
Fair value (2 models)
$6.57
ACCE price target
$13.00
Rating
Overvalued
Horizon
12 months
Fair value published on 20 Oct 2026, 16:04 CEST; previously $6.47 since 16 Oct 2026, 00:00 CEST.
ACCE price target published on 11 Oct 2026, 00:00 CEST.
Rating published on 20 Oct 2026, 16:04 CEST.
Price used: $15.39 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow and EV/EBITDA comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
134.1% above
-57.3% to fair value
ACCE score
50
out of 100
Analysts
47% buy
15 covering
P/E
1532.0x
forward 10.0x
1-year return
-39.2%
Dividend yield
0.00%
Vertex Inc. Class A Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Vertex sells cloud tax-calculation and compliance software (indirect tax engines, e-invoicing and tax-determination tools) to corporates that need sales and use tax, VAT and GST computed correctly across jurisdictions. The moat is embedded integration: its engine sits inside ERP and order-to-cash workflows, so switching costs are high and revenue is recurring. Revenue is growing 10.5%, and at roughly 10x forward earnings the market is pricing the stock as if that growth is not going to convert into profit, which the 3.4% operating margin and 1.5% ROE confirm is true today. The question for a deeper look is whether the margin gap closes as the cloud transition matures, since a 64% gross margin leaves a lot of room for operating leverage if costs are controlled. At a 2.2B market cap with no index membership, the name is under the radar, so the work is mostly in the margin trajectory and retention data.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
moderate
Thin earnings and margins
Net margin is +0.4% and operating margin +3.4%, with earnings down 44.0% YoY despite 10.5% revenue growth. Trailing P/E of 1272 reflects this, though forward P/E is 12.4.
moderate
Leveraged balance sheet
Debt/equity of 1.39 against FCF of $48M and ROE of +1.5%. Debt load is meaningful for a company with this little bottom-line profit.
moderate
Elevated short interest
Short interest sits at 6.2% of float. Not extreme, but worth weighing alongside the earnings decline.
AI research notes
AI-assisted·How I use AIWritten Oct 14, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Revenue grew 10.5% over the past year, and the five-year average annual growth rate is 14.8%.
Free cash flow over the last twelve months came to $48M, and the stock's free cash flow yield is 2.3%.
Analysts' mean price target of $17.15 sits 34.9% above the current share price.
Why it could disappoint
Net margin is only 0.4%, and return on equity is 1.5%, so little of each sale reaches shareholders as profit.
The trailing P/E is 1272.0x, far above the sector median forward P/E of 29.3x, even though the forward P/E is 12.4x.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 4, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where VERX's valuation models land
Price
$15.39
Model fair value
$6.57
Model range
$3.40 to $9.22
Fair value $6.57
Price $15.39
The price is above the whole model range.
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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