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Investing.com’s Fair Value analysis proved remarkably prescient for Steelcase Inc. (NYSE:SCS), delivering a 63% return in just over six months. This office furniture manufacturer’s stock was identified as significantly undervalued by InvestingPro models in May 2025, months before a major acquisition announcement sent shares soaring. Fair Value analysis helps investors identify better entry points, understand a stock’s intrinsic value, and make more informed decisions by combining multiple valuation methodologies. For investors seeking similar opportunities, the Most undervalued list provides a curated selection of stocks our models currently identify as trading below their intrinsic value.
Steelcase, a leading manufacturer of office furniture and workspace solutions with a market capitalization of $1.85 billion, operates primarily in the Industrials sector. When InvestingPro’s Fair Value model flagged the stock as undervalued on May 4, 2025, Steelcase had reported annual revenue of $3.17 billion with positive earnings per share of $1.02. The company’s stock had been underperforming in the months leading up to this analysis, with volatile monthly returns ranging from -11.5% to +12%. Despite this uneven performance, InvestingPro’s models detected strong fundamentals, assigning the company a positive financial health score of 3.47, suggesting resilience beneath the market volatility.
The InvestingPro Fair Value model identified Steelcase at $10.14 per share, calculating a fair value of $15 and projecting nearly 48% potential upside. This analysis proved remarkably accurate when, just three months later, HNI Corporation announced a $2.2 billion acquisition of Steelcase, sending shares soaring. By November 23, 2025, the stock was trading at $16.12, delivering a 63% total return to investors who followed the Fair Value signal. The stock hit multiple 52-week highs following the acquisition news, validating InvestingPro’s early assessment of the company’s true value.
Recent quarterly results have continued to support the initial thesis, with Steelcase’s Q2 earnings and revenue topping estimates as demand strengthened. The company reported slight revenue growth to $3.26 billion in its latest financials. Interestingly, InvestingPro’s current Fair Value estimate for Steelcase stands at $21.65, suggesting the stock still has 31% upside potential from current levels, even after its substantial gain. This indicates that despite the acquisition premium already reflected in the share price, the company’s fundamental value continues to grow.
InvestingPro’s Fair Value methodology aggregates multiple valuation approaches to determine a stock’s intrinsic worth. This comprehensive analysis considers discounted cash flow models, comparable company analyses, dividend discount models, and analyst consensus targets. By applying these varied methodologies and incorporating a margin of safety, InvestingPro can identify opportunities like Steelcase where market prices significantly diverge from fundamental value.
The Steelcase success story demonstrates the power of data-driven investment analysis in identifying opportunities before they become obvious to the broader market. InvestingPro subscribers had access to this valuable insight months before the acquisition announcement that drove the stock’s significant appreciation. For investors seeking similar opportunities to get ahead of major market moves, Learn more about InvestingPro to access Fair Value analyses, financial health metrics, and customized investment ideas that could help identify the next undervalued acquisition target.