Are you ready to dive into the world of financial technology and find out just how much a powerhouse like QuickBooks is worth? Let's get started!
Step 1: Understand the Big Picture - QuickBooks is Part of Something Much Bigger
Before we can even begin to answer the question, we need to clarify a crucial point. Intuit QuickBooks is not a standalone company. It is a flagship product and a major business segment of a much larger, publicly traded company called Intuit Inc. (NASDAQ: INTU).
Think of it this way: You're not asking how much the iPhone is worth as a company; you're asking how much it contributes to the valuation of Apple. Similarly, QuickBooks' worth is intertwined with the overall value of Intuit. So, to determine the "worth" of QuickBooks, we must analyze the worth of its parent company, Intuit.
Step 2: Calculate the Market Capitalization of Intuit Inc.
The most direct and widely accepted way to determine a company's worth is through its market capitalization.
What is market capitalization?
It's a simple calculation: current stock price multiplied by the number of outstanding shares. It represents the total market value of all of the company's shares.
Let's do the math together.
As of June 28, 2025, Intuit's stock price (INTU) is approximately $776.57 per share.
The number of outstanding shares is approximately 278.95 million.
So, the calculation is:
$776.57 (per share) * 278,947,000 (outstanding shares) = $216.62 billion
Therefore, the market capitalization of Intuit Inc. is approximately $216.62 billion.
This is a very important number, as it represents the total value of the entire company, including all of its products and services, such as QuickBooks, TurboTax, Credit Karma, and Mailchimp.
Step 3: Analyze Intuit's Revenue Streams to Isolate QuickBooks' Contribution
Now that we know the total value of Intuit, we can try to estimate the contribution of QuickBooks. While Intuit doesn't break out a separate valuation for each product, we can look at its revenue segments to understand their relative importance.
How does Intuit make money?
Intuit's business model is primarily based on a Software as a Service (SaaS) subscription model, which provides a stable and predictable stream of recurring revenue. Their revenue is generated from several key segments:
Small Business and Self-Employed Group: This is the segment where QuickBooks resides. It includes QuickBooks Online, QuickBooks Desktop, QuickBooks Self-Employed, and the company's payroll and payments solutions.
Consumer Group: This segment is dominated by TurboTax, Intuit's tax preparation software.
Credit Karma: A personal finance platform.
Mailchimp: An email marketing and automation platform.
QuickBooks's Dominance in the Market
QuickBooks is not just a major revenue driver; it holds a commanding market position. According to recent reports, Intuit controls a significant portion of the small business accounting software market in the United States, with a market share often cited to be around 81%. This dominance is a key factor in its valuation.
Revenue Breakdown and Growth
Intuit has been experiencing robust growth. In its recent fiscal Q3 2025 earnings report, Intuit's revenue increased by 15% to $7.8 billion. The company has a diverse revenue stream, with a strong emphasis on subscriptions. The "Small Business and Self-Employed Group" is a huge part of this success.
Intuit's recurring revenue model, with over 77% of total revenues coming from subscriptions, provides exceptional business stability and predictability. This model allows the company to continuously reinvest in product development and innovation, especially in AI-powered features.
Step 4: Consider Key Valuation Metrics and Analyst Insights
Beyond market capitalization, investors and analysts use several other metrics to evaluate a company's worth and potential for growth. Let's explore some of them.
1. Price-to-Earnings (P/E) Ratio: Intuit's P/E ratio is currently around 63.45. A high P/E ratio, especially one over 60, indicates that investors have high expectations for the company's future growth. They are willing to pay a premium for each dollar of earnings, believing that earnings will continue to grow significantly in the future.
2. Price-to-Sales (P/S) Ratio: Intuit's P/S ratio is around 11.96. This metric compares the company's stock price to its revenue. A high P/S ratio, like the one for Intuit, suggests that investors value the company's revenue highly, often because of its strong brand, high profit margins, and growth potential.
3. Enterprise Value to EBITDA (EV/EBITDA): This metric is often used to compare companies with different capital structures. Intuit's EV/EBITDA is around 39.89. This is a high multiple, again signaling that the market has a strong belief in Intuit's profitability and future earnings.
4. The "Rule of 40": This is a metric commonly used to evaluate SaaS companies. It suggests that a healthy SaaS company's revenue growth rate and EBITDA margin should sum to at least 40%. Intuit's "Rule of 40" is a strong 41%, demonstrating both healthy revenue growth and profitability.
Analyst Recommendations: A significant majority of financial analysts recommend to 'Buy' Intuit stock, with a smaller percentage recommending to 'Hold'. The consensus is that the company's strong performance, especially in its QuickBooks segment, justifies its premium valuation and offers future growth potential.
Step 5: The Final Conclusion - Putting It All Together
So, how much is Intuit QuickBooks worth?
While there is no a separate "QuickBooks" stock or market cap, we can confidently say that QuickBooks is a foundational pillar of Intuit's multi-billion dollar valuation. It is a dominant player in the small business accounting software market, a primary driver of Intuit's recurring revenue, and a key contributor to the parent company's impressive profitability and growth.
Based on Intuit's current market capitalization of over $210 billion, QuickBooks' value is a significant portion of that total. Analysts and investors clearly believe in the long-term potential of the QuickBooks ecosystem, especially as Intuit continues to integrate advanced AI features and expand into new markets. The company's stable subscription model and market dominance create a strong economic moat, making QuickBooks a highly valuable and indispensable asset within the Intuit portfolio.
10 Related FAQ Questions
How to determine the market capitalization of a company? Market capitalization is calculated by multiplying the current stock price by the total number of outstanding shares. You can find this information on financial news websites, stock market trackers, and the company's investor relations website.
How to find Intuit's financial statements? Intuit's official financial statements, including their Income Statement, Balance Sheet, and Cash Flow Statement, are available on the Intuit Investor Relations website. You can find their quarterly and annual reports (10-Q and 10-K filings).
How to calculate a company's Price-to-Earnings (P/E) ratio? The P/E ratio is calculated by dividing the current share price by the earnings per share (EPS). It is a common metric used to assess a company's valuation.
How to understand the Price-to-Sales (P/S) ratio? The P/S ratio is the company's market capitalization divided by its total revenue. It is useful for valuing growth companies, as it does not rely on earnings, which may be low or negative during a growth phase.
How to interpret a high P/E ratio? A high P/E ratio typically suggests that investors are willing to pay a higher price for the stock because they anticipate high future growth in earnings. It can indicate a company that is seen as a "growth stock."
How to invest in Intuit stock? To invest in Intuit (INTU) stock, you need to open a brokerage account with a platform that allows you to trade on the NASDAQ stock exchange. You can then purchase shares of INTU through your account.
How to identify the main competitors of QuickBooks? QuickBooks' main competitors in the accounting software market include Xero, FreshBooks, Zoho Books, Wave, and Sage. These companies offer various accounting and financial management solutions for small to medium-sized businesses.
How to know if Intuit is profitable? You can determine if Intuit is profitable by looking at its net income and net margin on its financial statements. Intuit has a strong net profit margin, indicating its profitability.
How to find out Intuit's revenue breakdown by segment? Intuit provides a breakdown of its revenue by business segment (Small Business and Self-Employed, Consumer Group, Credit Karma, and Mailchimp) in its quarterly and annual earnings reports, which are available on its investor relations website.
How to evaluate a SaaS company like Intuit? To evaluate a SaaS company, you can use metrics like the "Rule of 40" (revenue growth rate + EBITDA margin), churn rate, and customer lifetime value (LTV) to customer acquisition cost (CAC) ratio. These metrics are crucial for understanding the health and efficiency of a subscription-based business model.