Is CyberArk Software Ltd. overvalued or undervalued?

Sep 20 2025 06:17 PM IST
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As of February 13, 2025, CyberArk Software Ltd. is considered risky due to high valuation ratios and financial struggles, indicating it may be overvalued despite a recent 81.30% stock return.
As of 13 February 2025, the valuation grade for CyberArk Software Ltd. has moved from fair to risky, indicating a deteriorating outlook. The company appears to be overvalued, given its significant negative valuation ratios, including a Price to Book Value of 8.36 and an EV to Sales ratio of 17.86, which are considerably high for a loss-making entity. Additionally, the EV to EBIT ratio stands at -277.09, further highlighting the company's financial struggles.

In comparison to its peers, CyberArk's valuation metrics are concerning; Nutanix, Inc. has a P/E ratio of 106.60 and an EV to EBITDA of 78.35, while Toast, Inc. shows a fair valuation with a P/E of 99.50 and an EV to EBITDA of 84.83. Despite CyberArk's recent stock performance, with a 1Y return of 81.30% compared to the S&P 500's 17.14%, the underlying valuation suggests that the stock may not be sustainable at its current price levels.
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