Is Now An Opportune Moment To Examine CyberArk Software Ltd. (NASDAQ:CYBR)?

Today we're going to take a look at the well-established CyberArk Software Ltd. (NASDAQ:CYBR). The company's stock saw a significant share price rise of 22% in the past couple of months on the NASDAQGS. The company is now trading at yearly-high levels following the recent surge in its share price. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s examine CyberArk Software’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

See our latest analysis for CyberArk Software

What's The Opportunity In CyberArk Software?

Great news for investors – CyberArk Software is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is $394.77, but it is currently trading at US$276 on the share market, meaning that there is still an opportunity to buy now. However, given that CyberArk Software’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What does the future of CyberArk Software look like?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. However, with a relatively muted profit growth of 2.8% expected over the next year, growth doesn’t seem like a key driver for a buy decision for CyberArk Software, at least in the short term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since CYBR is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on CYBR for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy CYBR. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. You'd be interested to know, that we found 1 warning sign for CyberArk Software and you'll want to know about it.

If you are no longer interested in CyberArk Software, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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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