Confluent Valuation

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

Below Fair Value: CFLT ($26.06) is trading above our estimate of fair value ($24.87)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

CFLT 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/Revenue9.1x
Enterprise Value/EBITDA-19.5x
PEG Ration/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for CFLT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average6.5x
U Unity Software
3.3x2.9%US$6.9b
HCP HashiCorp
11.1x13.5%US$6.7b
PCOR Procore Technologies
10.3x16.0%US$10.5b
OTEX Open Text
1.4x-3.2%US$8.4b
CFLT Confluent
10.1x17.7%US$8.3b

Price-To-Sales vs Peers: CFLT is expensive based on its Price-To-Sales Ratio (10.1x) compared to the peer average (6.5x).


Price to Earnings Ratio vs Industry

How does CFLT's PE Ratio compare vs other companies in the US Software Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.4%
n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.4%
n/an/an/a
No more companies

Price-To-Sales vs Industry: CFLT is expensive based on its Price-To-Sales Ratio (10.1x) compared to the US Software industry average (4.8x).


Price to Sales Ratio vs Fair Ratio

What is CFLT'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.

CFLT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio10.1x
Fair PS Ratio7.7x

Price-To-Sales vs Fair Ratio: CFLT is expensive based on its Price-To-Sales Ratio (10.1x) compared to the estimated Fair Price-To-Sales Ratio (7.7x).


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 CFLT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$26.06
US$35.20
+35.1%
10.6%US$42.00US$28.00n/a31
Jul ’25US$28.54
US$35.30
+23.7%
10.6%US$42.00US$28.00n/a31
Jun ’25US$25.97
US$35.31
+35.9%
10.8%US$42.00US$28.00n/a30
May ’25US$28.21
US$33.97
+20.4%
12.5%US$42.00US$27.00n/a29
Apr ’25US$29.84
US$34.04
+14.1%
12.6%US$42.00US$27.00n/a29
Mar ’25US$34.30
US$33.39
-2.7%
15.0%US$42.00US$19.27n/a29
Feb ’25US$22.77
US$26.26
+15.3%
16.6%US$40.00US$19.27n/a28
Jan ’25US$23.40
US$24.89
+6.4%
14.3%US$34.00US$19.00n/a25
Dec ’24US$22.83
US$24.61
+7.8%
14.6%US$34.00US$19.00n/a25
Nov ’24US$28.13
US$38.24
+35.9%
11.2%US$45.00US$30.00n/a21
Oct ’24US$29.61
US$39.45
+33.2%
8.7%US$45.00US$30.00n/a20
Sep ’24US$33.25
US$39.38
+18.4%
8.6%US$45.00US$30.00n/a21
Aug ’24US$33.20
US$37.32
+12.4%
14.4%US$45.00US$24.00n/a19
Jul ’24US$35.31
US$37.16
+5.2%
14.8%US$45.00US$24.00US$28.5419
Jun ’24US$32.41
US$28.50
-12.1%
13.6%US$35.00US$20.00US$25.9720
May ’24US$21.61
US$28.32
+31.0%
13.2%US$33.00US$19.00US$28.2119
Apr ’24US$24.07
US$29.75
+23.6%
26.3%US$60.00US$19.00US$29.8420
Mar ’24US$23.61
US$29.84
+26.4%
26.9%US$60.00US$19.00US$34.3019
Feb ’24US$24.69
US$29.84
+20.9%
26.9%US$60.00US$19.00US$22.7719
Jan ’24US$22.24
US$35.82
+61.1%
25.9%US$60.00US$25.00US$23.4017
Dec ’23US$22.71
US$36.18
+59.3%
25.2%US$60.00US$25.00US$22.8317
Nov ’23US$25.74
US$38.94
+51.3%
25.0%US$65.00US$30.00US$28.1317
Oct ’23US$23.77
US$38.19
+60.7%
21.5%US$65.00US$30.00US$29.6116
Sep ’23US$25.75
US$38.40
+49.1%
22.0%US$65.00US$30.00US$33.2515
Aug ’23US$25.95
US$43.31
+66.9%
62.0%US$135.00US$27.00US$33.2016
Jul ’23US$24.54
US$44.63
+81.8%
59.2%US$135.00US$27.00US$35.3116

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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