Is CyberArk Software Ltd. overvalued or undervalued?
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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