Sumo Logic, Inc.

NasdaqGS:SUMO Stock Report

Market Cap: US$1.5b

Sumo Logic Valuation

Is SUMO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

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

Below Fair Value: SUMO ($12.04) is trading above our estimate of fair value ($11.15)

Significantly Below Fair Value: SUMO is trading above our estimate of fair value.

Key Valuation Metric

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

Key metric: As SUMO is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for SUMO. This is calculated by dividing SUMO's market cap by their current revenue.
What is SUMO's PS Ratio?
PS Ratio5x
SalesUS$300.67m
Market CapUS$1.49b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for SUMO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average5.6x
OPRA Opera
3.8x13.7%US$1.7b
MTTR Matterport
9.1x12.4%US$1.5b
AMPL Amplitude
4.5x9.0%US$1.3b
ENFN Enfusion
4.8x16.7%US$1.2b
SUMO Sumo Logic
5x14.1%US$1.5b

Price-To-Sales vs Peers: SUMO is expensive based on its Price-To-Sales Ratio (5x) compared to the peer average (3.2x).

Price to Sales Ratio vs Industry

How does SUMO's PS Ratio compare vs other companies in the US Software Industry?

81 CompaniesPrice / SalesEstimated GrowthMarket Cap
VYX NCR Voyix
0.6x-23.2%US$2.04b
PGY Pagaya Technologies
0.7x15.8%US$634.91m
XPER Xperi
0.8x1.8%US$378.82m
EGHT 8x8
0.5x1.1%US$351.48m
SUMO 5.0xIndustry Avg. 5.1xNo. of Companies81PS048121620+
81 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: SUMO is expensive based on its Price-To-Sales Ratio (5x) compared to the US Software industry average (4.3x).

Price to Sales Ratio vs Fair Ratio

What is SUMO'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.

SUMO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio5x
Fair PS Ratio3.7x

Price-To-Sales vs Fair Ratio: SUMO is expensive based on its Price-To-Sales Ratio (5x) compared to the estimated Fair Price-To-Sales Ratio (3.7x).

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 SUMO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
US$12.04
0%
0.2%US$12.05US$12.00n/a4
Nov ’25n/a
US$12.04
0%
0.2%US$12.05US$12.00n/a4
Oct ’25n/a
US$12.04
0%
0.2%US$12.05US$12.00n/a4
Sep ’25n/a
US$12.04
0%
0.2%US$12.05US$12.00n/a4
Aug ’25n/a
US$12.04
0%
0.2%US$12.05US$12.00n/a4
Jul ’25n/a
US$12.04
0%
0.2%US$12.05US$12.00n/a4
Jun ’25n/a
US$12.04
0%
0.2%US$12.05US$12.00n/a4
May ’25n/a
US$12.04
0%
0.2%US$12.05US$12.00n/a4
Apr ’25n/a
US$12.04
0%
0.2%US$12.05US$12.00n/a4
Mar ’25n/a
US$12.04
0%
0.2%US$12.05US$12.00n/a4
Feb ’25n/a
US$12.04
0%
0.2%US$12.05US$12.00n/a4
Jan ’25n/a
US$12.04
0%
0.2%US$12.05US$12.00n/a4
Dec ’24n/a
US$12.04
0%
0.2%US$12.05US$12.00n/a4
Nov ’24n/a
US$12.04
0%
0.2%US$12.05US$12.00n/a4
Oct ’24n/a
US$12.04
0%
0.2%US$12.05US$12.00n/a4
Sep ’24n/a
US$12.04
0%
0.2%US$12.05US$12.00n/a4
Aug ’24n/a
US$12.04
0%
0.2%US$12.05US$12.00n/a4
Jul ’24n/a
US$12.04
0%
0.2%US$12.05US$12.00n/a4
Jun ’24n/a
US$12.04
0%
0.2%US$12.05US$12.00n/a4
May ’24US$12.03
US$12.04
+0.06%
0.2%US$12.05US$12.00n/a4
Apr ’24US$11.98
US$12.04
+0.5%
0.2%US$12.05US$12.00n/a4
Mar ’24US$11.88
US$12.03
+1.3%
0.2%US$12.05US$12.00n/a5
Feb ’24US$12.06
US$11.43
-5.2%
24.7%US$18.00US$9.00n/a7
Jan ’24US$8.10
US$11.07
+36.7%
27.1%US$18.00US$8.50n/a7
Dec ’23US$7.94
US$11.14
+40.3%
27.3%US$18.00US$8.00n/a7
Nov ’23US$7.59
US$11.43
+50.6%
26.4%US$18.00US$8.00n/a7

Analyst Forecast: Target price is lower than the current share price.

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