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New Relic Valuation
Is NEWR * undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
3/6Valuation Score 3/6
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 NEWR * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: NEWR * (MX$1453.51) is trading below our estimate of fair value (MX$2066.91)
Significantly Below Fair Value: NEWR * is trading below fair value by more than 20%.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for NEWR *?
Key metric: As NEWR * is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.
| What is NEWR *'s PS Ratio? | |
|---|---|
| PS Ratio | 6.4x |
| Sales | US$967.64m |
| Market Cap | US$6.18b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 6x |
| Enterprise Value/EBITDA | -101.7x |
| PEG Ratio | n/a |
Price to Sales Ratio vs Peers
How does NEWR *'s PS Ratio compare to its peers?
| Company | Forward PS | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 13.7x | ||
ALU Altium | 20.8x | 15.7% | AU$9.0b |
VERX Vertex | 13.4x | 14.2% | US$8.6b |
SPSC SPS Commerce | 11.9x | 14.2% | US$7.3b |
CCCS CCC Intelligent Solutions Holdings | 8.5x | 7.8% | US$8.0b |
NEWR * New Relic | 6.4x | 13.6% | Mex$6.2b |
Price-To-Sales vs Peers: NEWR * is good value based on its Price-To-Sales Ratio (6.4x) compared to the peer average (10.3x).
Price to Sales Ratio vs Industry
How does NEWR *'s PS Ratio compare vs other companies in the Global Software Industry?
| 246 Companies | Price / Sales | Estimated Growth | Market Cap |
|---|---|---|---|
| 246 Companies | Estimated Growth | Market Cap | |
|---|---|---|---|
Price-To-Sales vs Industry: NEWR * is expensive based on its Price-To-Sales Ratio (6.4x) compared to the Global Software industry average (2.9x).
Price to Sales Ratio vs Fair Ratio
What is NEWR *'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.
| Fair Ratio | |
|---|---|
| Current PS Ratio | 6.4x |
| Fair PS Ratio | n/a |
Price-To-Sales vs Fair Ratio: Insufficient data to calculate NEWR *'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.
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