<div id="readability-page-1"><div><ul> <li>If you are wondering whether Clear Secure's share price still reflects good value after recent moves, this article walks through what the current market price might be implying about the business.</li> <li>The stock trades at US$34.13, with a 34.8% return over the last year and a 43.1% return over three years. This comes despite a 6.3% decline over the past week and a 13.0% decline over the last month, which can change how investors think about both upside and risk.</li> <li>Recent coverage has focused on Clear Secure's position in identity verification and airport security services, as investors weigh how its membership model and partnerships fit into long term growth expectations. This context helps explain why the share price has reacted over the short term while still sitting above levels from a year ago.</li> <li>Clear Secure currently holds a valuation score of 5 out of 6. This signals that several common valuation checks point to potential undervaluation. Next we will look at how different valuation methods line up on the stock before finishing with a simple framework that can help you interpret those results more confidently.</li> </ul> <p>Clear Secure delivered 34.8% returns over the last year. See how this stacks up to the rest of the Software industry.</p> <h3>Approach 1: Clear Secure Discounted Cash Flow (DCF) Analysis</h3> <p>A Discounted Cash Flow model estimates what a business might be worth today by projecting its future cash flows and then discounting those back to a present value.</p> <p>For Clear Secure, the model uses last twelve month Free Cash Flow of about $284.6 million as a starting point and applies a 2 Stage Free Cash Flow to Equity approach. Analysts provide explicit Free Cash Flow estimates up to 2027, including $370.1 million in 2026 and $426.5 million in 2027. Beyond that, Simply Wall St extrapolates cash flows through 2035, with projected Free Cash Flow of $676.2 million in that year. All cash flows are modeled in $ and discounted back using the DCF framework described.</p> <p>Based on these inputs, the DCF model arrives at an estimated intrinsic value of about $69.77 per share, compared with the current share price of $34.13. Under these assumptions, this suggests the shares trade at roughly a 51.1% discount to the model’s intrinsic value estimate.</p> <p><strong>Result: UNDERVALUED</strong></p> <p>Our Discounted Cash Flow (DCF) analysis suggests Clear Secure is undervalued by 51.1%. Track this in your watchlist or portfolio, or discover 869 more undervalued stocks based on cash flows.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/f0872d91-010c-4d66-8b62-49e7da1a57fb/chart/dcf?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/f0872d91-010c-4d66-8b62-49e7da1a57fb/chart/dcf"/><figcaption>YOU Discounted Cash Flow as at Jan 2026</figcaption></figure> <p>Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Clear Secure.</p> <h3>Approach 2: Clear Secure Price vs Earnings</h3> <p>For a profitable company like Clear Secure, the P/E ratio is a useful way to think about what you are paying for each dollar of current earnings. It links directly to the business you own today, rather than long range forecasts, which makes it a familiar anchor for many investors.</p> <p>What counts as a reasonable P/E often reflects how the market views a company’s growth prospects and risk profile. Higher expected growth or lower perceived risk can support a higher multiple, while more uncertainty usually calls for a lower one.</p> <p>Clear Secure currently trades on a P/E of 18.37x. That sits below the Software industry average of 32.35x and also below the peer group average of 27.37x. Simply Wall St’s Fair Ratio for Clear Secure is 25.72x. This is its proprietary estimate of what a “normal” P/E could look like given factors such as the company’s earnings growth, profit margins, industry, market value and risk characteristics. Because this Fair Ratio adjusts for these company specific factors, it can be more tailored than a simple comparison with broad industry or peer averages.</p> <p>Comparing the Fair Ratio of 25.72x with the current 18.37x suggests Clear Secure’s P/E sits below that benchmark. This points to potential undervaluation on this measure.</p> <p><strong>Result: UNDERVALUED</strong></p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/f0872d91-010c-4d66-8b62-49e7da1a57fb/chart/pe-multiple-vs-industry?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/f0872d91-010c-4d66-8b62-49e7da1a57fb/chart/pe-multiple-vs-industry"/><figcaption>NYSE:YOU P/E Ratio as at Jan 2026</figcaption></figure> <p>P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1442 companies where insiders are betting big on explosive growth.</p> <h3>Upgrade Your Decision Making: Choose your Clear Secure Narrative</h3> <p>Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. These are simple stories that you and other investors build around Clear Secure by linking your view of its business, your assumptions for future revenue, earnings and margins, and your own fair value estimate, all inside the Simply Wall St Community page where millions of investors share their views.</p> <p>Instead of looking at a single model, a Narrative connects the company’s story to a financial forecast and then to a fair value. This allows you to quickly compare that fair value with today’s share price and decide whether the gap between the two looks attractive or not for your approach.</p> <p>Because Narratives on Simply Wall St update as new information like earnings, guidance or news arrives, your view stays tied to the latest numbers without you needing to rebuild everything from scratch.</p> <p>For Clear Secure, one investor Narrative currently sets a fair value around US$46.66 per share while another sits closer to US$39.38. That spread reflects different views on how quickly enrolments, new verticals and international expansion might translate into revenue, margins and future P/E, giving you a concrete range to think about rather than a single “right” number.</p> <p>Do you think there's more to the story for Clear Secure? Head over to our Community to see what others are saying!</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/f0872d91-010c-4d66-8b62-49e7da1a57fb/chart/quote-price?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/f0872d91-010c-4d66-8b62-49e7da1a57fb/chart/quote-price"/><figcaption>NYSE:YOU 1-Year Stock Price Chart</figcaption></figure> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p></div></div>

<p>Clear Secure's stock trades at $34.13, reflecting a 34.8% return over the past year despite a recent decline. Analysts suggest the stock is undervalued, with a DCF model estimating an intrinsic value of $69.77 per share, indicating a 51.1% discount. The P/E ratio stands at 18.37, below industry averages, further suggesting potential undervaluation. Investors are weighing Clear Secure's growth prospects in identity verification and airport security services, with a focus on its membership model and partnerships for long-term growth expectations.</p>

Is Clear Secure (YOU) Pricing Reflect Identity Verification Growth After Recent Share Pullback