Cloudflare, Inc.

NYSE:NET Stock Report

Market Cap: US$29.9b

Cloudflare Valuation

Is NET undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of NET when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NET ($86.49) is trading below our estimate of fair value ($92.49)

Significantly Below Fair Value: NET is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NET?

Other financial metrics that can be useful for relative valuation.

NET key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue20x
Enterprise Value/EBITDA-615.5x
PEG Ration/a

Price to Sales Ratio vs Peers

How does NET's PS Ratio compare to its peers?

The above table shows the PS ratio for NET vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average8.3x
SNOW Snowflake
11.9x18.7%US$38.7b
MDB MongoDB
10.9x15.3%US$20.1b
GDDY GoDaddy
5.2x7.6%US$22.9b
OKTA Okta
5.1x10.6%US$12.4b
NET Cloudflare
20x21.2%US$29.9b

Price-To-Sales vs Peers: NET is expensive based on its Price-To-Sales Ratio (20x) compared to the peer average (8.3x).

Price to Earnings Ratio vs Industry

How does NET's PE Ratio compare vs other companies in the US IT Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.4%
 n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.4%
 n/an/an/a
No more companies

Price-To-Sales vs Industry: NET is expensive based on its Price-To-Sales Ratio (20x) compared to the US IT industry average (2.2x).

Price to Sales Ratio vs Fair Ratio

What is NET's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NET PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio20x
Fair PS Ratio13.8x

Price-To-Sales vs Fair Ratio: NET is expensive based on its Price-To-Sales Ratio (20x) compared to the estimated Fair Price-To-Sales Ratio (13.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst NET forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$86.49
US$91.52
+5.8%
18.6%US$135.00US$57.00n/a30
Oct ’25US$78.11
US$91.85
+17.6%
17.8%US$135.00US$57.00n/a29
Sep ’25US$82.14
US$91.92
+11.9%
17.5%US$135.00US$57.00n/a30
Aug ’25US$74.40
US$90.22
+21.3%
18.9%US$135.00US$50.00n/a30
Jul ’25US$83.95
US$90.39
+7.7%
19.3%US$135.00US$50.00n/a29
Jun ’25US$67.69
US$89.98
+32.9%
19.6%US$135.00US$50.00n/a28
May ’25US$88.04
US$101.29
+15.1%
18.9%US$135.00US$52.00n/a29
Apr ’25US$95.66
US$102.42
+7.1%
19.0%US$135.00US$52.00n/a30
Mar ’25US$99.92
US$102.28
+2.4%
19.0%US$135.00US$52.00n/a30
Feb ’25US$79.59
US$76.45
-3.9%
21.3%US$110.00US$45.00n/a30
Jan ’25US$83.26
US$68.83
-17.3%
20.6%US$110.00US$45.00n/a27
Dec ’24US$78.78
US$65.55
-16.8%
16.6%US$85.00US$45.00n/a26
Nov ’24US$54.95
US$68.21
+24.1%
17.3%US$90.00US$43.00US$87.5525
Oct ’24US$63.04
US$68.77
+9.1%
18.4%US$90.00US$43.00US$78.1125
Sep ’24US$63.99
US$69.08
+8.0%
18.1%US$90.00US$43.00US$82.1424
Aug ’24US$68.63
US$61.71
-10.1%
19.8%US$80.00US$38.00US$74.4024
Jul ’24US$65.37
US$56.22
-14.0%
17.4%US$80.00US$38.00US$83.9523
Jun ’24US$69.65
US$56.05
-19.5%
17.7%US$80.00US$38.00US$67.6922
May ’24US$44.72
US$56.42
+26.2%
19.5%US$80.00US$38.00US$88.0424
Apr ’24US$61.66
US$67.32
+9.2%
19.1%US$95.00US$43.00US$95.6625
Mar ’24US$58.51
US$67.32
+15.1%
19.1%US$95.00US$43.00US$99.9225
Feb ’24US$55.51
US$59.39
+7.0%
22.9%US$95.00US$36.00US$79.5923
Jan ’24US$45.21
US$63.04
+39.4%
19.7%US$95.00US$42.00US$83.2623
Dec ’23US$49.57
US$63.04
+27.2%
19.7%US$95.00US$42.00US$78.7823
Nov ’23US$55.58
US$82.71
+48.8%
27.0%US$150.00US$57.00US$54.9521

Analyst Forecast: Target price is less than 20% higher than the current share price.

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