Varonis Systems, Inc.

LSE:0VOU Stock Report

Market Cap: US$5.1b

Varonis Systems Valuation

Is 0VOU undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 0VOU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0VOU ($45.41) is trading below our estimate of fair value ($72.91)

Significantly Below Fair Value: 0VOU is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0VOU?

Key metric: As 0VOU is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 0VOU. This is calculated by dividing 0VOU's market cap by their current revenue.
What is 0VOU's PS Ratio?
PS Ratio9.3x
SalesUS$546.54m
Market CapUS$5.10b

Price to Sales Ratio vs Peers

How does 0VOU's PS Ratio compare to its peers?

The above table shows the PS ratio for 0VOU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.5x
BLTG Blancco Technology Group
3.9x9.7%UK£173.0m
CNS Corero Network Security
5.3x12.4%UK£100.9m
SGE Sage Group
5.5x8.0%UK£12.8b
SCT Softcat
3.2x10.2%UK£3.1b
0VOU Varonis Systems
9.3x11.6%US$5.1b

Price-To-Sales vs Peers: 0VOU is expensive based on its Price-To-Sales Ratio (9.3x) compared to the peer average (4.7x).

Price to Sales Ratio vs Industry

How does 0VOU's PS Ratio compare vs other companies in the GB Software Industry?

12 CompaniesPrice / SalesEstimated GrowthMarket Cap
RM. RM
0.5xn/aUS$109.00m
SWG Shearwater Group
0.4xn/aUS$11.93m
PEG Petards Group
0.5x34.5%US$6.08m
MBO MobilityOne
0.01xn/aUS$2.86m
0VOU 9.3xIndustry Avg. 2.3xNo. of Companies13PS02.44.87.29.612+
12 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 0VOU is expensive based on its Price-To-Sales Ratio (9.3x) compared to the UK Software industry average (2.3x).

Price to Sales Ratio vs Fair Ratio

What is 0VOU'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.

0VOU PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio9.3x
Fair PS Ratio9.1x

Price-To-Sales vs Fair Ratio: 0VOU is expensive based on its Price-To-Sales Ratio (9.3x) compared to the estimated Fair Price-To-Sales Ratio (9.1x).

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 0VOU forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$45.41
US$58.32
+28.4%
16.5%US$70.00US$37.00n/a19
Dec ’25US$49.78
US$60.20
+20.9%
13.0%US$70.00US$37.00n/a19
Nov ’25US$51.61
US$60.20
+16.7%
13.0%US$70.00US$37.00n/a19
Oct ’25US$54.92
US$56.99
+3.8%
14.8%US$67.00US$33.00n/a18
Sep ’25US$56.63
US$56.99
+0.6%
14.8%US$67.00US$33.00n/a18
Aug ’25US$53.07
US$56.76
+7.0%
15.2%US$67.00US$33.00n/a17
Jul ’25US$47.07
US$51.65
+9.7%
15.0%US$65.00US$30.00n/a17
Jun ’25US$42.66
US$51.41
+20.5%
15.0%US$65.00US$30.00n/a17
May ’25US$43.40
US$51.65
+19.0%
14.5%US$65.00US$30.00n/a20
Apr ’25US$47.83
US$51.41
+7.5%
14.8%US$65.00US$30.00n/a20
Mar ’25US$51.06
US$51.16
+0.2%
14.8%US$65.00US$30.00n/a20
Feb ’25US$45.99
US$46.53
+1.2%
18.5%US$63.00US$25.00n/a21
Jan ’25US$45.48
US$40.75
-10.4%
23.2%US$63.00US$25.00n/a20
Dec ’24US$43.36
US$37.00
-14.7%
20.1%US$63.00US$25.00US$49.7819
Nov ’24US$33.33
US$36.68
+10.1%
19.6%US$63.00US$25.00US$51.6119
Oct ’24US$30.80
US$34.37
+11.6%
21.8%US$63.00US$25.00US$54.9219
Sep ’24US$31.99
US$34.37
+7.4%
21.8%US$63.00US$25.00US$56.6319
Aug ’24US$31.95
US$34.11
+6.8%
22.4%US$63.00US$25.00US$53.0719
Jul ’24US$26.52
US$30.53
+15.1%
28.0%US$63.00US$22.00US$47.0719
Jun ’24US$25.52
US$30.53
+19.6%
28.0%US$63.00US$22.00US$42.6619
May ’24US$23.16
US$30.61
+32.2%
29.0%US$63.00US$22.00US$43.4018
Apr ’24US$25.00
US$30.78
+23.1%
28.7%US$63.00US$22.00US$47.8318
Mar ’24US$27.41
US$31.24
+14.0%
28.3%US$63.00US$24.00US$51.0617
Feb ’24US$26.17
US$28.94
+10.6%
32.4%US$63.00US$20.00US$45.9918
Jan ’24US$23.77
US$28.76
+21.0%
35.7%US$63.00US$20.00US$45.4817
Dec ’23US$22.10
US$28.76
+30.2%
35.7%US$63.00US$20.00US$43.3617

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/27 12:43
End of Day Share Price 2024/12/26 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

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 here.

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 .

Analyst Sources

Varonis Systems, Inc. is covered by 38 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
Shrenik KothariBaird
Ishan MajumdarBaptista Research
Saket KaliaBarclays