Snowflake Valuation

Is SNOW 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 SNOW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SNOW (ARS6320) is trading below our estimate of fair value (ARS6899.17)

Significantly Below Fair Value: SNOW 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 SNOW?

Key metric: As SNOW is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for SNOW. This is calculated by dividing SNOW's market cap by their current revenue.
What is SNOW's PS Ratio?
PS Ratio	16.8x
Sales	US$3.41b
Market Cap	US$43.28b

SNOW 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/Revenue	12.2x
Enterprise Value/EBITDA	-34.9x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for SNOW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	11.7x
NET Cloudflare	22.8x	19.9%	US$33.1b
MDB MongoDB	12.8x	15.4%	US$20.8b
GDDY GoDaddy	6x	7.6%	US$26.7b
OKTA Okta	5.2x	10.5%	US$12.5b
SNOW Snowflake	16.8x	18.2%	AR$43.3b

Price-To-Sales vs Peers: SNOW is expensive based on its Price-To-Sales Ratio (16.8x) compared to the peer average (11.7x).

Price to Sales Ratio vs Industry

How does SNOW's PS Ratio compare vs other companies in the Global IT Industry?

148 Companies	Price / Sales	Estimated Growth	Market Cap

148 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: SNOW is expensive based on its Price-To-Sales Ratio (16.8x) compared to the Global IT industry average (1.5x).

Price to Sales Ratio vs Fair Ratio

What is SNOW'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.

SNOW PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	16.8x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate SNOW's Price-To-Sales Fair Ratio for valuation analysis.

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.