Varonis Systems, Inc.

DB:VS2 Stock Report

Market Cap: €5.3b

Varonis Systems Valuation

Is VS2 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 VS2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VS2 (€46.98) is trading above our estimate of fair value (€39.74)

Significantly Below Fair Value: VS2 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VS2?

Key metric: As VS2 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for VS2. This is calculated by dividing VS2's market cap by their current revenue.
What is VS2's PS Ratio?
PS Ratio10.2x
SalesUS$546.54m
Market CapUS$5.58b

Price to Sales Ratio vs Peers

How does VS2's PS Ratio compare to its peers?

The above table shows the PS ratio for VS2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.6x
SUSE SUSE
3x7.4%€1.9b
IXX init innovation in traffic systems
1.4x13.2%€356.5m
IVU IVU Traffic Technologies
1.7xn/a€231.1m
NEM Nemetschek
12.1x14.1%€11.2b
VS2 Varonis Systems
10.2x11.6%€5.6b

Price-To-Sales vs Peers: VS2 is expensive based on its Price-To-Sales Ratio (10.2x) compared to the peer average (5.1x).

Price to Sales Ratio vs Industry

How does VS2's PS Ratio compare vs other companies in the DE Software Industry?

6 CompaniesPrice / SalesEstimated GrowthMarket Cap
CSH CENIT
0.3x5.2%US$71.98m
CLIQ Cliq Digital
0.09x13.2%US$25.26m
LSX LS telcom
0.5x5.0%US$21.40m
8DQ GetSwift Technologies
0.07xn/aUS$2.53m
VS2 10.2xIndustry Avg. 2.1xNo. of Companies7PS02.44.87.29.612+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: VS2 is expensive based on its Price-To-Sales Ratio (10.2x) compared to the German Software industry average (2.1x).

Price to Sales Ratio vs Fair Ratio

What is VS2'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.

VS2 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio10.2x
Fair PS Ratio7.6x

Price-To-Sales vs Fair Ratio: VS2 is expensive based on its Price-To-Sales Ratio (10.2x) compared to the estimated Fair Price-To-Sales Ratio (7.6x).

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 VS2 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€46.98
€57.12
+21.6%
13.0%€66.42€35.11n/a19
Nov ’25€46.35
€55.44
+19.6%
13.0%€64.46€34.07n/a19
Oct ’25€50.56
€51.74
+2.3%
14.8%€60.82€29.96n/a18
Sep ’25€50.70
€51.74
+2.0%
14.8%€60.82€29.96n/a18
Aug ’25€51.04
€52.51
+2.9%
15.2%€61.98€30.53n/a17
Jul ’25€44.49
€48.08
+8.1%
15.0%€60.52€27.93n/a17
Jun ’25€40.12
€47.28
+17.9%
15.0%€59.78€27.59n/a17
May ’25€41.81
€48.48
+16.0%
14.5%€61.02€28.16n/a20
Apr ’25€43.62
€46.97
+7.7%
14.8%€59.38€27.41n/a20
Mar ’25€47.02
€47.21
+0.4%
14.8%€59.98€27.68n/a20
Feb ’25€41.52
€43.07
+3.7%
18.5%€58.31€23.14n/a21
Jan ’25€41.14
€37.33
-9.3%
23.2%€57.71€22.90n/a20
Dec ’24€38.26
€34.01
-11.1%
20.1%€57.92€22.98n/a19
Nov ’24€31.68
€34.71
+9.6%
19.6%€59.62€23.66€46.3519
Oct ’24€28.78
€31.47
+9.4%
21.8%€57.69€22.89€50.5619
Sep ’24€29.38
€31.47
+7.1%
21.8%€57.69€22.89€50.7019
Aug ’24€26.54
€31.05
+17.0%
22.4%€57.36€22.76€51.0419
Jul ’24€24.38
€28.16
+15.5%
28.0%€58.12€20.30€44.4919
Jun ’24€24.54
€28.16
+14.8%
28.0%€58.12€20.30€40.1219
May ’24€20.64
€27.90
+35.2%
29.0%€57.42€20.05€41.8118
Apr ’24€22.48
€28.52
+26.8%
28.7%€58.37€20.38€43.6218
Mar ’24€25.49
€29.16
+14.4%
28.3%€58.80€22.40€47.0217
Feb ’24€23.63
€26.60
+12.6%
32.4%€57.90€18.38€41.5218
Jan ’24€22.12
€29.26
+32.3%
35.7%€64.09€20.35€41.1417
Dec ’23€20.21
€29.26
+44.8%
35.7%€64.09€20.35€38.2617
Nov ’23€17.53
€31.27
+78.4%
35.0%€63.78€20.25€31.6817

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

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