What Is CyberArk Software Ltd.'s (NASDAQ:CYBR) Share Price Doing?

Let's talk about the popular CyberArk Software Ltd. (NASDAQ:CYBR). The company's shares saw a significant share price rise of 25% in the past couple of months on the NASDAQGS. The recent share price gains has brought the company back closer to its yearly peak. 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.

View our latest analysis for CyberArk Software

Is CyberArk Software Still Cheap?

Good news, investors! CyberArk Software is still a bargain right now. Our valuation model shows that the intrinsic value for the stock is $362.94, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, CyberArk Software’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

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. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Though in the case of CyberArk Software, it is expected to deliver a relatively unexciting earnings growth of 9.7%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for CyberArk Software, at least in the near 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.

If you'd like to know more about CyberArk Software as a business, it's important to be aware of any risks it's facing. At Simply Wall St, we found 1 warning sign for CyberArk Software and we think they deserve your attention.

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.