BILL Holdings, Inc. (BILL): A Bull Case Theory

We came across a bullish thesis on BILL Holdings, Inc. on Value investing subreddit by danieljapps. In this article, we will summarize the bulls’ thesis on BILL. BILL Holdings, Inc.'s share was trading at $49.60 as of October 13th. BILL’s forward P/E was 25.38 according to Yahoo Finance.

Bill.com (BILL), also known as Bill Holdings, has established itself as a leading SaaS provider for small and medium-sized businesses (SMBs) in the U.S., addressing a market where 90% of SMBs still rely on manual processes, checks, and spreadsheets. The company’s platform facilitates accounting, payroll, and finance operations, processing nearly $300 billion annually—roughly 1% of U.S. GDP—surpassing even PayPal domestically.

Founded by René Lacerte, whose deep family background in accounting informs his understanding of SMB needs, BILL has grown rapidly since its 2019 IPO, with revenue rising from $157.6 million in 2020 to $1.29 billion in 2024, and has recently achieved profitability, boasting an 84% gross margin and positive cash flow.

Despite this, the stock trades at a market capitalization of $4 billion, roughly in line with book value, resulting in a P/B of just 1.03. This valuation appears attractive, particularly in light of recent acquisitions like Xero’s $2.5 billion purchase of Melio, a smaller competitor with fewer customers and lower revenue than BILL. While recent quarterly results fell slightly short due to SMB uncertainty amid trade policy concerns, broader trends—including a rebound in the NFIB Small Business Optimism Index and increased Google search activity—suggest a more favorable environment ahead.

BILL’s strong financial position, clear SMB focus, and newly reinforced management team support continued growth and the potential for earnings acceleration. Given its undervaluation and robust fundamentals, the company offers compelling upside, with a 12-month price target of $80, implying potential for a significant re-rating and near-term upside for investors seeking a combination of growth and profitability.

Previously we covered a bullish thesis on PayPal Holdings, Inc. (PYPL) by Sergey in May 2025, which highlighted the company’s strategic transformation, AI integration, and Venmo growth. The company's stock price has appreciated approximately by 3.82% since our coverage. The thesis still stands as PayPal continues to expand its payments ecosystem. Danieljapps shares a similar focus on SMBs but emphasizes BILL’s SaaS dominance and attractive valuation.

BILL Holdings, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held BILL at the end of the second quarter which was 53 in the previous quarter. While we acknowledge the potential of BILL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.