Klaviyo (KVYO) shares nudged up around 3% in the last trading session after the company announced its latest quarterly results. Investors immediately focused on revenue gains and what the report might signal for growth going forward.

See our latest analysis for Klaviyo.

After a choppy few months and a tough start to the year, Klaviyo’s 1-day share price gain clearly caught some attention. However, it follows a year-to-date share price return of -33.6% and a 1-year total shareholder return of -25%. The current moves suggest investors are weighing renewed growth prospects against lingering uncertainties, with recent revenue momentum starting to shift sentiment.

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With shares still well below analyst price targets despite recent gains, the question for investors is whether Klaviyo is an undervalued growth play or if the market has already priced in its future potential.

Compared to its last close at $27.64, the most widely followed narrative places Klaviyo’s fair value much higher, setting the bar at $43.68. These valuation calls set the tone for an ongoing debate about Klaviyo’s real growth runway.

The rapid innovation and rollout of new AI-first products, including Conversational Agent, Helpdesk, and analytics, expands Klaviyo's addressable market from just marketing automation into broader B2C CRM and customer service. This sets up significant opportunities for higher ARPU and long-term revenue growth.

Read the complete narrative.

This fair value is built atop a bold vision of Klaviyo riding new product launches to turbocharged recurring revenue. The real game changer may be surging margins and ambitious profit targets that drive this narrative, but what is the secret source behind such a premium valuation? Get the answers hiding behind these aggressive growth assumptions.

Result: Fair Value of $43.68 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing competition from AI-native platforms and uncertainty around new product adoption may put pressure on Klaviyo’s growth story in the quarters ahead.

Find out about the key risks to this Klaviyo narrative.

While the fair value narrative points to Klaviyo being undervalued, our SWS DCF model offers a sharp contrast. It estimates a fair value of just $11.66 per share, far below the current price. This suggests the market may be pricing in a lot of future growth. Is sentiment running ahead of fundamentals, or is the DCF model too conservative for fast-evolving tech stocks?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Klaviyo 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 918 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

If you see Klaviyo’s story differently or want to dig into the numbers yourself, you can easily craft and share your own take in just minutes. Do it your way

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Klaviyo.

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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.

Companies discussed in this article include KVYO.

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