Should Investors Reassess Globant After a 71% Drop in 2025?

Simply Wall St.

Oct 29, 2025

If you’ve been following Globant lately, you might be asking yourself whether to hold on, get in, or step aside. Investors have watched the stock ride a bit of a roller coaster over the last few years...

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Investors have watched the stock ride a bit of a roller coaster over the last few years...</p>\n\n<a href=\"https://simplywall.st/stocks/us/software/nyse-glob/globant/news/should-investors-reassess-globant-after-a-71-drop-in-2025\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Should Investors Reassess Globant After a 71% Drop in 2025?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nShould Investors Reassess Globant After a 71% Drop in 2025?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-10-29 18:20 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/software/nyse-glob/globant/news/should-investors-reassess-globant-after-a-71-drop-in-2025><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>If you’ve been following Globant lately, you might be asking yourself whether to hold on, get in, or step aside. Investors have watched the stock ride a bit of a roller coaster over the last few years...</p>\n\n<a href=\"https://simplywall.st/stocks/us/software/nyse-glob/globant/news/should-investors-reassess-globant-after-a-71-drop-in-2025\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU2125910500.SGD","symbol_name":"Natixis WCM Global Emerging Markets Equity H-R/A SGD","start_time":0,"source_url":"https://simplywall.st/stocks/us/software/nyse-glob/globant/news/should-investors-reassess-globant-after-a-71-drop-in-2025","article_id":"2579970155","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/8031000-choice2-main-header/1585186598236"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/software/nyse-glob/globant/news/should-investors-reassess-globant-after-a-71-drop-in-2025","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2579970155","pubTimestamp":1761733242,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you’ve been following Globant lately, you might be asking yourself whether to hold on, get in, or step aside. Investors have watched the stock ride a bit of a roller coaster over the last few years, with a recent 7-day dip of -0.8% but a healthy bounce of 4.8% over the past month. Of course, when you zoom out, it’s clear this isn’t just short-term noise: year-to-date, Globant is down a striking -71.5%, and the 1-year and 3-year returns tell a similar story with losses of -72.5% and -67.8%...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU2125910500.SGD":"Natixis WCM Global Emerging Markets Equity H-R/A SGD","FCF":"第一联邦金融","GLOB":"Globant","LU2045819591.USD":"Natixis WCM Global Emerging Markets Equity R/A USD","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","ISBC":"投资者银行","BK4134":"信息科技咨询与其它服务","IE00B0169N27.USD":"STEWARD INVESTORS GLOBAL EMERGING MARKETS LEADERS \"I\" (USD) ACC","BK4211":"区域性银行","IE00BF5LJ272.USD":"Legg Mason Martin Currie - Global Emerging Markets A Acc USD"},"translate_title":"2025年Globant下跌71%后，投资者是否应该重新评估？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"FCF":1,"GLOB":1,"DCF":1,"ISBC":1.5},"content_text":"If you’ve been following Globant lately, you might be asking yourself whether to hold on, get in, or step aside. Investors have watched the stock ride a bit of a roller coaster over the last few years, with a recent 7-day dip of -0.8% but a healthy bounce of 4.8% over the past month. Of course, when you zoom out, it’s clear this isn’t just short-term noise: year-to-date, Globant is down a striking -71.5%, and the 1-year and 3-year returns tell a similar story with losses of -72.5% and -67.8% respectively. Even over 5 years, the stock is off -66.4% from its former highs. It’s tempting to chalk that up simply to sector trends or macro concerns, but there’s more to the story. Recent industry buzz has shifted focus to how digital transformation spending is evolving, and Globant has been at the center of discussions about how tech consultants are adapting to new AI-powered client needs. While there haven’t been any major headline upheavals, investor sentiment has been swayed by how quickly companies like Globant can pivot and leverage growing demand for automation and digital experiences. With that backdrop, digging into how Globant stacks up on valuation gets interesting. Using six recognized methods to gauge whether a stock is undervalued, Globant scores a 4 out of 6, which signals there are real reasons to take a closer look. Next, let’s break down where those value opportunities might be, and before we wrap up, I’ll share an even deeper way of thinking about what the numbers really mean for investors like you. Why Globant is lagging behind its peers AdvertisementApproach 1: Globant Discounted Cash Flow (DCF) Analysis A Discounted Cash Flow (DCF) model estimates the underlying value of a business by projecting its future cash flows and discounting them back to their value today. For Globant, this approach uses current and expected Free Cash Flow (FCF) as the foundation for its calculation. Globant’s most recent FCF stands at $130.8 million. Analyst projections, supported by various sources, suggest that FCF could rise steadily over the next decade, reaching around $402.5 million by 2035. While detailed analyst forecasts focus on the first five years, subsequent annual FCF projections, such as $323.6 million in 2029, are extrapolated using established industry models. The output of this DCF analysis is a fair value estimate of $118.21 per share. Given that Globant stock currently trades at a discount of 48.6 percent to this intrinsic value, the DCF model suggests the company is meaningfully undervalued right now, especially considering both the trajectory of its cash generation and future growth potential. Result: UNDERVALUED Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Globant. GLOB Discounted Cash Flow as at Oct 2025 Our Discounted Cash Flow (DCF) analysis suggests Globant is undervalued by 48.6%. Track this in your watchlist or portfolio, or discover more undervalued stocks. Approach 2: Globant Price vs Earnings When it comes to valuing profitable companies like Globant, the Price-to-Earnings (PE) ratio is widely considered a go-to metric. It tells you how much investors are willing to pay today for each dollar of current earnings, making it especially useful for companies with a steady profit stream. The “right” or fair PE ratio can vary between companies and industries, depending on factors like expected earnings growth and perceived risk. A company growing rapidly, or one with lower risk, will often attract a higher PE multiple from investors than a slower-growing or riskier peer. Currently, Globant trades at a PE ratio of 24.3x, which is below the IT industry average of 29.9x, and also beneath the peer group average of 21.2x. However, Simply Wall St's proprietary “Fair Ratio” for Globant stands at 38.7x. This Fair Ratio is designed to capture a more nuanced view by looking beyond simple group averages to consider growth prospects, margins, inherent risks, and size. By capturing these extra elements, it offers a more comprehensive benchmark than industry averages alone. Comparing Globant’s current 24.3x PE with its fair value multiple of 38.7x suggests the stock is undervalued when you factor in the company’s growth outlook and risk profile. Result: UNDERVALUED NYSE:GLOB PE Ratio as at Oct 2025 PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your Globant Narrative Earlier we mentioned that there's an even better way to understand valuation, so let's introduce you to Narratives. A Narrative is your own story about a company, one that brings together your outlook on its future, your estimates for revenue or profit growth, and what you believe is a fair price for the stock. Instead of relying solely on the raw numbers, Narratives connect Globant's business journey to real-world forecasts and fair value estimates, making your decisions more grounded and personal. Narratives are easy to create and explore through Simply Wall St’s Community page, where millions of investors share their perspectives in a format that's accessible to everyone. By choosing or building a Narrative, you define the key drivers that matter to you and instantly see how your thesis stacks up against the current market price, helping you decide whether it's time to buy, hold, or sell. Best of all, Narratives are kept up to date as new information emerges, so your story evolves with every fresh earnings report or news headline. For example, investors who believe in Globant’s long-term post-AI margin expansion might set a high fair value near $240, while more cautious users who see lingering IT service risks prefer a value closer to $74. Both approaches give actionable context you can use right now. Do you think there's more to the story for Globant? Create your own Narrative to let the Community know! NYSE:GLOB Community Fair Values as at Oct 2025  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    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\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}