Check Point Software Technologies Ltd.

NasdaqGS:CHKP Stock Report

Market Cap: US$20.7b

Check Point Software Technologies Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CHKP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CHKP ($189.5) is trading below our estimate of fair value ($193.3)

Significantly Below Fair Value: CHKP 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 CHKP?

Key metric: As CHKP is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for CHKP. This is calculated by dividing CHKP's market cap by their current earnings.
What is CHKP's PE Ratio?
PE Ratio24.9x
EarningsUS$837.40m
Market CapUS$20.69b

Price to Earnings Ratio vs Peers

How does CHKP's PE Ratio compare to its peers?

The above table shows the PE ratio for CHKP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average33.6x
GEN Gen Digital
29.6x15.1%US$18.4b
CVLT Commvault Systems
42.7x-15.3%US$7.6b
DLB Dolby Laboratories
29.3x8.3%US$7.6b
QLYS Qualys
32.7x3.3%US$5.6b
CHKP Check Point Software Technologies
24.9x5.1%US$20.7b

Price-To-Earnings vs Peers: CHKP is good value based on its Price-To-Earnings Ratio (24.9x) compared to the peer average (33.6x).


Price to Earnings Ratio vs Industry

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

11 CompaniesPrice / EarningsEstimated GrowthMarket Cap
YXT YXT.COM Group Holding
2.2xn/aUS$141.11m
GRRR Gorilla Technology Group
4x-8.3%US$91.50m
NISN Nisun International Enterprise Development Group
1.6xn/aUS$27.63m
NXTT Next Technology Holding
0.7xn/aUS$15.77m
CHKP 24.9xIndustry Avg. 43.0xNo. of Companies11PE020406080100+
11 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CHKP is good value based on its Price-To-Earnings Ratio (24.9x) compared to the US Software industry average (43x).


Price to Earnings Ratio vs Fair Ratio

What is CHKP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CHKP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.9x
Fair PE Ratio35.6x

Price-To-Earnings vs Fair Ratio: CHKP is good value based on its Price-To-Earnings Ratio (24.9x) compared to the estimated Fair Price-To-Earnings Ratio (35.6x).


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 CHKP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$189.50
US$193.24
+2.0%
11.4%US$230.00US$110.00n/a29
Dec ’25US$182.00
US$192.72
+5.9%
11.5%US$230.00US$110.00n/a29
Nov ’25US$170.50
US$194.12
+13.9%
11.1%US$230.00US$110.00n/a29
Oct ’25US$188.99
US$190.42
+0.8%
11.0%US$225.00US$110.00n/a30
Sep ’25US$192.50
US$189.35
-1.6%
10.7%US$215.00US$110.00n/a30
Aug ’25US$181.82
US$187.71
+3.2%
10.8%US$215.00US$110.00n/a30
Jul ’25US$165.00
US$171.78
+4.1%
9.9%US$205.00US$110.00n/a30
Jun ’25US$150.50
US$171.76
+14.1%
10.2%US$205.00US$110.00n/a29
May ’25US$148.97
US$172.01
+15.5%
10.1%US$205.00US$110.00n/a30
Apr ’25US$164.28
US$172.54
+5.0%
10.2%US$205.00US$110.00n/a30
Mar ’25US$158.05
US$170.44
+7.8%
9.6%US$200.00US$110.00n/a30
Feb ’25US$161.99
US$159.07
-1.8%
10.2%US$190.00US$110.00n/a28
Jan ’25US$152.79
US$148.96
-2.5%
9.5%US$190.00US$132.00n/a27
Dec ’24US$145.83
US$141.62
-2.9%
8.6%US$161.00US$103.00US$182.0026
Nov ’24US$136.26
US$140.65
+3.2%
8.3%US$161.00US$103.00US$170.5026
Oct ’24US$133.28
US$138.44
+3.9%
8.7%US$161.00US$103.00US$188.9927
Sep ’24US$133.14
US$138.22
+3.8%
8.6%US$161.00US$103.00US$192.5027
Aug ’24US$132.31
US$137.85
+4.2%
8.8%US$161.00US$103.00US$181.8227
Jul ’24US$125.62
US$133.69
+6.4%
8.9%US$164.00US$103.00US$165.0026
Jun ’24US$124.18
US$133.04
+7.1%
8.7%US$164.00US$103.00US$150.5025
May ’24US$118.52
US$135.19
+14.1%
9.9%US$164.00US$103.00US$148.9727
Apr ’24US$130.00
US$138.04
+6.2%
10.0%US$164.00US$103.00US$164.2828
Mar ’24US$123.78
US$138.45
+11.9%
9.9%US$164.00US$103.00US$158.0529
Feb ’24US$129.56
US$139.00
+7.3%
10.1%US$164.00US$103.00US$161.9928
Jan ’24US$126.16
US$137.23
+8.8%
10.9%US$164.00US$103.00US$152.7926
Dec ’23US$134.50
US$137.23
+2.0%
10.9%US$164.00US$103.00US$145.8326

Analyst Forecast: Target price is less than 20% higher than the current share price.


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