Pure Storage, Inc.

NYSE:PSTG Stock Report

Market Cap: US$18.7b

Pure Storage Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Discounted Cash Flow
Simply Wall St
US$98.87
Fair Value
42.4% undervalued intrinsic discount
19
Number of Analysts

Below Fair Value: PSTG ($56.96) is trading below our estimate of fair value ($98.87)

Significantly Below Fair Value: PSTG is trading below fair value by more than 20%.

Key Valuation Metric

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

Key metric: As PSTG is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for PSTG. This is calculated by dividing PSTG's market cap by their current earnings.
What is PSTG's PE Ratio?
PE Ratio145.7x
EarningsUS$127.75m
Market CapUS$18.73b

Price to Earnings Ratio vs Peers

How does PSTG's PE Ratio compare to its peers?

The above table shows the PE ratio for PSTG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.4x
NTAP NetApp
17.7x5.39%US$21.2b
HPE Hewlett Packard Enterprise
19.6x47.96%US$27.2b
HPQ HP
9.6x5.79%US$24.3b
WDC Western Digital
22.7x5.79%US$24.2b
PSTG Pure Storage
145.7x33.96%US$18.7b

Price-To-Earnings vs Peers: PSTG is expensive based on its Price-To-Earnings Ratio (145.7x) compared to the peer average (17.4x).

Price to Earnings Ratio vs Industry

How does PSTG's PE Ratio compare vs other companies in the Global Tech Industry?

10 CompaniesPrice / EarningsEstimated GrowthMarket Cap
PSTG 145.7xIndustry Avg. 22.0xNo. of Companies39PE020406080100+
10 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PSTG is expensive based on its Price-To-Earnings Ratio (145.7x) compared to the Global Tech industry average (22x).

Price to Earnings Ratio vs Fair Ratio

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

PSTG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio145.7x
Fair PE Ratio43.7x

Price-To-Earnings vs Fair Ratio: PSTG is expensive based on its Price-To-Earnings Ratio (145.7x) compared to the estimated Fair Price-To-Earnings Ratio (43.7x).

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 PSTG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$56.96
US$70.40
+23.59%
13.75%US$93.00US$50.00n/a19
Jul ’26US$55.22
US$69.68
+26.18%
14.27%US$93.00US$50.00n/a20
Jun ’26US$53.59
US$69.68
+30.02%
14.27%US$93.00US$50.00n/a20
May ’26US$46.46
US$67.06
+44.33%
19.14%US$93.00US$40.00n/a20
Apr ’26US$45.39
US$71.51
+57.54%
14.06%US$93.00US$50.00n/a20
Mar ’26US$52.47
US$71.52
+36.31%
14.01%US$93.00US$50.00n/a20
Feb ’26US$67.79
US$72.12
+6.39%
14.59%US$93.00US$47.00n/a20
Jan ’26US$61.43
US$71.78
+16.85%
14.46%US$93.00US$47.00n/a21
Dec ’25US$52.99
US$64.86
+22.39%
16.02%US$93.00US$45.00n/a20
Nov ’25US$50.95
US$65.28
+28.13%
16.36%US$93.00US$45.00n/a18
Oct ’25US$48.77
US$64.12
+31.47%
13.28%US$80.00US$45.00n/a18
Sep ’25US$51.29
US$65.80
+28.28%
12.83%US$80.00US$45.00n/a19
Aug ’25US$56.82
US$70.90
+24.78%
12.27%US$80.00US$47.00n/a19
Jul ’25US$65.51
US$70.74
+7.99%
12.93%US$80.00US$44.00US$55.2219
Jun ’25US$60.29
US$70.56
+17.03%
13.02%US$80.00US$44.00US$53.5918
May ’25US$50.13
US$56.11
+11.93%
12.92%US$66.00US$44.00US$46.4618
Apr ’25US$52.06
US$53.56
+2.87%
12.36%US$66.00US$44.00US$45.3918
Mar ’25US$55.33
US$51.06
-7.71%
8.44%US$60.00US$44.00US$52.4716
Feb ’25US$40.65
US$42.69
+5.01%
12.28%US$58.00US$35.00US$67.7916
Jan ’25US$35.66
US$41.75
+17.08%
11.94%US$58.00US$35.00US$61.4318
Dec ’24US$33.15
US$41.38
+24.83%
11.81%US$58.00US$35.00US$52.9917
Nov ’24US$34.07
US$43.91
+28.89%
10.20%US$58.00US$38.00US$50.9517
Oct ’24US$35.62
US$43.26
+21.46%
6.75%US$50.00US$38.00US$48.7717
Sep ’24US$38.36
US$43.36
+13.04%
6.61%US$50.00US$38.00US$51.2918
Aug ’24US$37.62
US$40.81
+8.47%
10.33%US$47.00US$31.00US$56.8218
Jul ’24US$36.82
US$40.76
+10.71%
10.63%US$47.00US$31.00US$65.5117
AnalystConsensusTarget
Consensus Narrative from 19 Analysts
US$70.40
Fair Value
19.1% undervalued intrinsic discount
19
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/07/24 21:57
End of Day Share Price 2025/07/24 00:00
Earnings2025/05/04
Annual Earnings2025/02/02

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Pure Storage, Inc. is covered by 41 analysts. 20 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jayson NolandBaird
Timothy LongBarclays
Timothy LongBMO Capital Markets Equity Research