Lightspeed Commerce Estimated Fair Value CA$20.91, Current Price Suggests 20% Undervaluation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 27 2025
0mins
Source: Yahoo Finance
- Fair Value Assessment: Based on a two-stage free cash flow model, Lightspeed Commerce's estimated fair value is CA$20.91, while the current share price of CA$16.71 indicates a 20% undervaluation, suggesting the market may underestimate its future growth potential.
- Cash Flow Forecast: Projected free cash flow is expected to grow from US$10.8 million in 2026 to US$144.7 million by 2035, reflecting the company's gradual financial improvement and potential to attract more investor interest.
- Terminal Value Calculation: Using the Gordon Growth model, the terminal value is calculated at US$3.1 billion, with a present value of US$1.5 billion, indicating the company's stable long-term growth potential which could enhance its market valuation.
- Investment Risk Warning: Although the company is currently debt-free and has sufficient cash flow, it is not expected to become profitable in the next three years, prompting investors to carefully assess potential risks when formulating investment strategies.
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Analyst Views on LSPD
Wall Street analysts forecast LSPD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LSPD is 15.29 USD with a low forecast of 12.00 USD and a high forecast of 21.60 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
6 Buy
8 Hold
1 Sell
Moderate Buy
Current: 11.450
Low
12.00
Averages
15.29
High
21.60
Current: 11.450
Low
12.00
Averages
15.29
High
21.60
About LSPD
Lightspeed Commerce Inc. is a provider of point of sale (POS) and payments platform. The Company helps businesses accelerate growth, deliver customer experience, and run smarter across all channels and locations. Through its flexible omnichannel technology, the Company brings together POS, e-commerce, embedded payments, inventory, reporting, staff and supplier management, financial services, and an exclusive wholesale retail network. Its flagship solutions include Lightspeed Restaurant, a unified hospitality commerce offering, and Lightspeed Retail, a retail commerce offering that unites advanced POS, payments, and e-commerce into one cohesive solution. In addition, Lightspeed eCommerce allows merchants to enhance omnichannel reach and increase selling flexibility, including through social media platforms and digital marketplaces. To complement its core cloud solutions, it offers a merchant cash advance program called Lightspeed Capital.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- AI Assistant Launch: Lightspeed Commerce has introduced Lightspeed AI, aimed at integrating agentic artificial intelligence directly into the workflows of independent businesses, enhancing decision-making efficiency and business intelligence.
- Conversational Assistant Features: The new system incorporates conversational assistants within Lightspeed Retail and Lightspeed Restaurant, enabling merchants to ask questions and receive answers quickly, thereby allowing them to make smarter business decisions.
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