CyberArk Software (CYBR): Exploring Valuation After a 67% One-Year Total Return

CyberArk Software (CYBR) has caught the attention of long-term investors, with its stock seeing a 67% rise over the past year. The company has also delivered strong annual revenue growth, which reflects ongoing confidence in its cybersecurity solutions.

See our latest analysis for CyberArk Software.

After a robust rally over the past year, CyberArk Software’s share price has surged by 47% year-to-date, while its one-year total shareholder return sits at an impressive 67%. This upswing reflects building momentum around the company’s role in cybersecurity, supported further by strong investor confidence and positive business developments.

If the latest moves in cybersecurity are on your radar, this is a great opportunity to discover See the full list for free.

With shares reaching new highs and trading slightly above analyst price targets, investors may wonder if CyberArk remains an undervalued opportunity or if the market has already factored in its future growth potential.

Most Popular Narrative: 6.7% Overvalued

At $493.52, CyberArk Software's share price stands above the most popular narrative's fair value estimate of $462.53, spotlighting a high-conviction valuation that is slightly exceeded by recent market enthusiasm.

The evolving machine identity market, coupled with CyberArk’s focus on AI-driven identity security through its machine identity capabilities and Secrets Management, is expected to drive significant revenue growth as organizations seek integrated solutions to manage increasingly complex identity security needs. CyberArk's unified identity security platform, which includes privileged access management and workforce security, is expected to drive higher average deal sizes, revenue growth, and improved net margins as customers increasingly consolidate their identity security solutions with trusted vendors.

Read the complete narrative.

Curious what sets this price above fair value? The narrative is anchored by bold projections for margin expansion and future earnings, defying typical software sector multiples. Want to see which numbers cause this ambitious valuation to spike? Peek inside the narrative's assumptions; some may surprise you.

Result: Fair Value of $462.53 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, integration hurdles from recent acquisitions or intensifying competition could challenge CyberArk’s upbeat outlook and affect future growth assumptions.

Find out about the key risks to this CyberArk Software narrative.

Build Your Own CyberArk Software Narrative

If you have your own view or want to dig deeper into the numbers, you can build a unique perspective in just a few minutes. Do it your way

A great starting point for your CyberArk Software research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

Don’t limit your portfolio’s potential when there may be standout opportunities waiting just beyond your watchlist. Challenge yourself to find the next big winner with these tailored ideas:

• Tap into new trends in artificial intelligence by following these 24 AI penny stocks as they transform entire industries and redefine what’s possible with advanced technology.
• Secure passive income for your future through these 19 dividend stocks with yields > 3% with strong yields and stable returns in any market climate.
• Position yourself ahead of the market with these 79 cryptocurrency and blockchain stocks which have the potential to shape the next wave of financial innovation.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com