Five9 Valuation

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

Below Fair Value: FIVN ($58.25) is trading below our estimate of fair value ($177.21)

Significantly Below Fair Value: FIVN is trading below fair value by more than 20%.


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

FIVN 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/Revenue4.8x
Enterprise Value/EBITDA-106.5x
PEG Ration/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for FIVN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average6.7x
WK Workiva
6.9x14.2%US$4.3b
CWAN Clearwater Analytics Holdings
9.8x16.2%US$4.1b
BL BlackLine
6.1x9.5%US$3.6b
PWSC PowerSchool Holdings
4.1x10.8%US$3.5b
FIVN Five9
4.7x15.0%US$4.3b

Price-To-Sales vs Peers: FIVN is good value based on its Price-To-Sales Ratio (4.7x) compared to the peer average (6.7x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.7%
n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.7%
n/an/an/a
No more companies

Price-To-Sales vs Industry: FIVN is expensive based on its Price-To-Sales Ratio (4.7x) compared to the US Software industry average (4.1x).


Price to Sales Ratio vs Fair Ratio

What is FIVN'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.

FIVN PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio4.7x
Fair PS Ratio3.9x

Price-To-Sales vs Fair Ratio: FIVN is expensive based on its Price-To-Sales Ratio (4.7x) compared to the estimated Fair Price-To-Sales Ratio (3.9x).


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 FIVN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$58.25
US$84.79
+45.6%
13.6%US$100.00US$60.00n/a23
Apr ’25US$61.35
US$85.73
+39.7%
13.0%US$100.00US$60.00n/a22
Mar ’25US$62.32
US$86.00
+38.0%
13.2%US$100.00US$60.00n/a21
Feb ’25US$75.36
US$88.10
+16.9%
14.2%US$105.00US$59.00n/a21
Jan ’25US$78.69
US$87.05
+10.6%
15.2%US$105.00US$59.00n/a21
Dec ’24US$79.59
US$84.67
+6.4%
15.9%US$105.00US$59.00n/a21
Nov ’24US$55.69
US$88.14
+58.3%
14.1%US$105.00US$59.00n/a21
Oct ’24US$64.30
US$89.33
+38.9%
14.4%US$105.00US$59.00n/a21
Sep ’24US$72.67
US$88.23
+21.4%
15.2%US$105.00US$59.00n/a22
Aug ’24US$87.68
US$85.82
-2.1%
15.9%US$105.00US$59.00n/a22
Jul ’24US$82.45
US$83.43
+1.2%
14.6%US$105.00US$59.00n/a23
Jun ’24US$66.60
US$83.82
+25.9%
14.7%US$105.00US$59.00n/a22
May ’24US$66.07
US$84.85
+28.4%
14.4%US$105.00US$59.00n/a20
Apr ’24US$72.29
US$85.25
+17.9%
14.5%US$105.00US$59.00US$61.3520
Mar ’24US$65.83
US$85.26
+29.5%
14.8%US$105.00US$59.00US$62.3219
Feb ’24US$81.98
US$78.25
-4.5%
17.6%US$100.00US$52.00US$75.3620
Jan ’24US$67.86
US$72.37
+6.6%
18.6%US$100.00US$52.00US$78.6921
Dec ’23US$67.45
US$71.65
+6.2%
19.2%US$100.00US$52.00US$79.5921
Nov ’23US$59.85
US$109.89
+83.6%
23.3%US$160.00US$70.00US$55.6921
Oct ’23US$74.98
US$133.19
+77.6%
16.8%US$175.00US$90.00US$64.3020
Sep ’23US$96.12
US$137.44
+43.0%
14.1%US$175.00US$90.00US$72.6718
Aug ’23US$107.18
US$138.69
+29.4%
14.4%US$175.00US$90.00US$87.6816
Jul ’23US$94.73
US$146.56
+54.7%
15.4%US$180.00US$90.00US$82.4516
Jun ’23US$98.77
US$146.56
+48.4%
15.4%US$180.00US$90.00US$66.6016
May ’23US$110.10
US$146.20
+32.8%
17.1%US$180.00US$90.00US$66.0715
Apr ’23US$116.50
US$146.47
+25.7%
16.0%US$180.00US$90.00US$72.2917

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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