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When InvestingPro’s Fair Value models identified National Vision Holdings (NASDAQ:EYE) as significantly undervalued in October 2024, the optical retail chain was trading at just $9.80 per share. Seven months later, this analysis has proven remarkably accurate, with the stock delivering a 60% return and reaching $15.63, demonstrating the power of systematic valuation analysis in identifying market opportunities.
National Vision Holdings, one of America’s largest optical retailers, operates over 1,000 retail locations across the United States. When InvestingPro’s models flagged the stock, the company was experiencing volatile trading despite stable fundamentals, with revenue of $2.17 billion and EBITDA of $127.38 million. For investors seeking similar opportunities today, InvestingPro maintains a regularly updated Most undervalued list featuring stocks with significant upside potential.
The Fair Value analysis proved prescient as National Vision’s business fundamentals strengthened throughout 2025. The company recently beat Q1 2025 estimates and raised its full-year outlook, validating InvestingPro’s original thesis. This improvement caught Wall Street’s attention, with Bank of America raising its price target to $22, suggesting further upside potential even after the substantial gains.
Recent developments have reinforced the investment case, including strategic store closures to boost profitability and executive restructuring to strengthen operations. While revenue has shown some fluctuation, the company’s core business metrics remain solid, with EBITDA holding steady at $125.36 million in the latest quarter.
InvestingPro’s Fair Value methodology combines multiple valuation approaches, including discounted cash flow analysis, peer comparisons, and analyst consensus targets, to identify mispriced securities. This comprehensive approach helped detect National Vision’s undervaluation when market sentiment was overly negative, providing members with a clear signal to act.
The success of this analysis exemplifies why systematic valuation tools are crucial for investors seeking to identify market inefficiencies. InvestingPro offers subscribers access to these powerful Fair Value models, along with real-time alerts, fundamental analysis, and proprietary indicators that can help identify similar opportunities across the market. As National Vision’s case demonstrates, combining comprehensive analysis with timely execution can lead to substantial investment returns.