Sprout Social Valuation

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

Below Fair Value: SPT ($31) is trading below our estimate of fair value ($98.47)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

SPT 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/Revenue4.4x
Enterprise Value/EBITDA-28x
PEG Ration/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for SPT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.7x
OPRA Opera
3.6x13.8%US$1.5b
SUMO Sumo Logic
5x14.1%US$1.5b
PD PagerDuty
4.2x9.7%US$1.8b
SEMR Semrush Holdings
6.2x16.4%US$2.0b
SPT Sprout Social
4.7x14.7%US$1.7b

Price-To-Sales vs Peers: SPT is expensive based on its Price-To-Sales Ratio (4.7x) compared to the peer average (4.7x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.9%
n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.9%
n/an/an/a
No more companies

Price-To-Sales vs Industry: SPT is good value based on its Price-To-Sales Ratio (4.7x) compared to the US Software industry average (5.2x).


Price to Sales Ratio vs Fair Ratio

What is SPT'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.

SPT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio4.7x
Fair PS Ratio4.7x

Price-To-Sales vs Fair Ratio: SPT is good value based on its Price-To-Sales Ratio (4.7x) compared to the estimated Fair Price-To-Sales Ratio (4.7x).


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 SPT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$31.00
US$41.17
+32.8%
17.7%US$55.00US$25.00n/a12
Nov ’25US$26.97
US$41.17
+52.6%
17.7%US$55.00US$25.00n/a12
Oct ’25US$28.40
US$42.50
+49.6%
16.2%US$55.00US$28.00n/a12
Sep ’25US$31.10
US$43.00
+38.3%
15.0%US$55.00US$28.00n/a12
Aug ’25US$37.26
US$44.73
+20.0%
10.4%US$55.00US$38.00n/a11
Jul ’25US$37.27
US$45.64
+22.4%
10.5%US$55.00US$38.00n/a11
Jun ’25US$32.65
US$49.36
+51.2%
18.8%US$76.00US$40.00n/a11
May ’25US$49.91
US$72.81
+45.9%
6.6%US$83.00US$65.00n/a14
Apr ’25US$58.60
US$73.18
+24.9%
6.0%US$83.00US$66.00n/a13
Mar ’25US$63.95
US$71.25
+11.4%
7.1%US$80.00US$58.00n/a13
Feb ’25US$62.00
US$70.02
+12.9%
10.4%US$81.00US$55.00n/a13
Jan ’25US$61.44
US$64.00
+4.2%
13.0%US$78.00US$48.00n/a12
Dec ’24US$59.78
US$62.92
+5.3%
12.2%US$78.00US$48.00n/a13
Nov ’24US$42.63
US$62.54
+46.7%
13.0%US$78.00US$48.00US$26.9713
Oct ’24US$49.88
US$61.58
+23.5%
11.4%US$75.00US$48.00US$28.4012
Sep ’24US$52.81
US$61.25
+16.0%
12.6%US$75.00US$44.00US$31.1012
Aug ’24US$56.13
US$61.58
+9.7%
14.1%US$76.00US$46.00US$37.2612
Jul ’24US$46.16
US$62.09
+34.5%
15.7%US$78.00US$46.00US$37.2711
Jun ’24US$43.14
US$62.09
+43.9%
15.7%US$78.00US$46.00US$32.6511
May ’24US$50.15
US$74.18
+47.9%
14.9%US$100.00US$52.00US$49.9111
Apr ’24US$60.88
US$74.18
+21.8%
14.9%US$100.00US$52.00US$58.6011
Mar ’24US$60.88
US$73.80
+21.2%
15.7%US$100.00US$52.00US$63.9510
Feb ’24US$64.35
US$69.64
+8.2%
15.9%US$100.00US$60.00US$62.0011
Jan ’24US$56.46
US$69.64
+23.3%
15.9%US$100.00US$60.00US$61.4411
Dec ’23US$59.60
US$69.36
+16.4%
16.3%US$100.00US$60.00US$59.7811
Nov ’23US$55.94
US$74.82
+33.7%
12.0%US$100.00US$65.00US$42.6311

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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