Is Qualys (QLYS) Undervalued? A Fresh Look at Recent Share Price Gains and Long-Term Growth Potential

Qualys (QLYS) shares have seen modest movement lately, with the stock up nearly 5% over the past month. Investors are watching closely as the cybersecurity firm continues to post steady annual growth in both revenue and net income.

See our latest analysis for Qualys.

Qualys’s share price has bounced around this year, with recent momentum turning modestly positive. However, the 1-year total shareholder return stands at -8.2%. Despite near-term volatility, the longer-term view shows the company has still delivered a 50% total return over five years, which suggests that investors remain optimistic about its fundamental strength and room for growth.

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The question now is whether Qualys’s recent gains signal an undervalued opportunity in a steadily growing cybersecurity firm, or if the market has already priced in all its future potential and left little room for upside.

Most Popular Narrative: 3.3% Undervalued

With Qualys closing at $137.90, the prevailing narrative places fair value at $142.56, suggesting buyers may have a slight edge on price. This context centers on operational momentum and strategic growth, highlighting factors that could elevate expectations for future performance.

Adoption of Qualys' new cloud-native risk operations center (ROC) and Agentic AI platform positions the company as a leading pre-breach risk management provider, offering unified orchestration, automation, and remediation across both Qualys and non-Qualys data. This opens incremental greenfield opportunities and should support higher ARPU and expanded TAM, leading to durable revenue and earnings growth.

Read the complete narrative.

Discover what the experts are betting on here; one core technology move is driving the math behind this valuation. Bewildered by how ambitious growth and margin expectations blend with Wall Street’s cautious optimism? Uncover the numbers and assumptions that make or break the case for upside.

Result: Fair Value of $142.56 (UNDERVALUED)

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

However, rapid shifts in AI security and unpredictable customer adoption patterns could threaten Qualys’s growth narrative. This leaves room for a reversal in sentiment.

Find out about the key risks to this Qualys narrative.

Build Your Own Qualys Narrative

If you see things differently or want to dig into the numbers on your own, building a personalized take on Qualys is quick and straightforward. Do it your way.

A great starting point for your Qualys research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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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.

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