NASDAQ · HQY

HealthEquity, Inc.

Healthcare · Medical - Healthcare Information Services

$94.55▲ 2.04% ($1.89)at close

As of 4:00 PM ET

52-week

$72.76$107.62

Market cap

$7.90B

What the market price implies · Reverse DCF

To support a price of $94.55, this model requires revenue to grow by 5.37%/yr over the next 10 years, compounded annually.

Historical revenue grew by 14.79%/yr over the past 4 years. The required annual growth rate is 9.41 percentage points lower.

Selected forecast · Base scenario

8.17%/yr · actual 10-year annualized revenue growth

Year 1 growth: 12.81%

Market-implied · Base operating assumptions + edited margins

5.37%/yr · flat 10-year annualized revenue growth

Reverse DCF solves revenue growth itself using Base operating assumptions and your edited margins. Changing forecast growth alone does not change the implied rate. This is a model-implied requirement, not an analyst forecast.

Valuation

Recommended · Revenue & margin DCF

Price used

$94.55

Estimated value / share

$121.88

Base scenario

This estimate is 28.9% above the price used.

USD · TTM ending 2026-07-31

Year 1 growth 12.81% · Ending margin 26.67% · Discount rate 7.34%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future revenue, operating margins, and the investment needed to support them.

Price timestamp: Sep 10, 2026, 8:00 PM UTC
Financial statement period: TTM ending 2026-07-31
Data refreshed: Sep 11, 2026, 5:16 AM UTC · provider

Why this method?

FCFF is positive, but the series is too unstable to anchor a direct cash-flow CAGR and the business still fails the steady-state comparability checks. Use a revenue-and-margin transition model instead of normalizing and compounding current FCFF.

Is FCFF positive and has it been for 3+ consecutive years? 10 consecutive positive FCFF years are available.

Is FCFF stable (not swinging >30% year to year)? The largest recent FCFF swing is 339.5%.

Do you have 5+ years of positive FCFF history? 10 consecutive positive FCFF years are available.

Is the business model structurally similar to what it should be in 10 years? Operating margin moved 20.2 percentage points across the last five years, above the 10.0-point stability threshold, so steady-state FCFF is not a reliable anchor yet.

Price vs Fundamentals

Why The Stock Is Moving

Mixed / unclearLow confidence

1Y Price: 3.32%Revenue (TTM): 7.34%FCF (TTM): 38.88%P/FCF: 3rd pct

What changed

The stock rose 3.32% over the last year. Revenue grew 7.34% over the trailing twelve months. Operating margin moved from 23.71% to 25.61%. Free cash flow grew 38.88% over the trailing twelve months.

What the market seems to be pricing

The stock has moved higher against modestly improving underlying metrics. The operating data does not yet tell a clear story — the move may reflect sentiment, sector rotation, or macro factors rather than company-specific earnings power.

What would invalidate this read

Operating margin currently stands at 25.61%. A decisive move in revenue — currently up 7.34% — would be the clearest signal to resolve the ambiguity.

Performance

Return analysis

Company profile

Headquartered in Draper, Utah, and established in 2002, HealthEquity, Inc. furnishes technology-powered service platforms to both individual consumers and employers across the United States.

CEOScott R. Cutler

SectorHealthcare

IndustryMedical - Healthcare Information Services

Employees2,814

IPO dateJul 31, 2014

https://www.healthequity.com

Market multiples

Forward P/E—

EV/EBITDA16.48

Enterprise value$8.06B

Stock splits

No stock splits recorded for this ticker.

Profitability & growth

Revenue growth7.64%

Gross margin75.21%▲11.8ppvs FY2025

Operating margin25.61%▲5.4ppvs FY2025

ROE11.43%▲1.2ppvs FY2026

Analyst consensus

RatingBuy

Target price$115.33▲21.98%

Buy

Hold

Sell

Analyst ratings tend to be lagging indicators. Use as one signal among many.

Earnings

Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.

Next report

Dec 2, 2026

Q4 FY26 · EPS est $1.16 · Revenue est $347.18M

View