Tenable Holdings (TENB): Evaluating Valuation Following Q3 Profitability and Updated Growth Guidance

Tenable Holdings (TENB) released its third-quarter earnings, which included higher sales and a swing to profitability for the quarter. The company also issued updated guidance for the next quarter and the year.

See our latest analysis for Tenable Holdings.

After last week’s earnings beat and fresh guidance, momentum around Tenable Holdings is still uncertain. The stock’s 1-year total shareholder return stands at -33.8%, and the latest $27.67 share price leaves it well off prior highs. Short-term selling pressure has eased somewhat, but longer-term investors are still waiting for real signs of a turnaround as the company transitions from losses to profitability.

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With shares still well below previous highs and fresh earnings in hand, the big question now is whether Tenable Holdings is trading at a discount that offers upside, or if the market has already considered its future growth prospects.

Most Popular Narrative: 28.7% Undervalued

The most widely followed narrative sees considerable upside versus Tenable Holdings' recent $27.67 close, as the consensus fair value sits more than a quarter higher. Investors are watching how aggressive long-term projections play out amid changing industry dynamics.

The accelerating shift towards digital transformation and cloud adoption is expanding organizations' attack surfaces, driving sustained demand for Tenable's unified exposure management platform. This is expected to grow total addressable market and provide strong long-term revenue tailwinds.

Read the complete narrative.

Curious about what powers such a bullish scenario? Find out which forecasts, margin assumptions, and future growth levers are fueling this ambitious valuation. Dive in to discover the bold projections that could reshape how Tenable is valued on Wall Street.

Result: Fair Value of $38.79 (UNDERVALUED)

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

However, challenges such as intense competition and heavy reliance on government contracts could quickly shift optimism if growth or renewals falter in coming quarters.

Find out about the key risks to this Tenable Holdings narrative.

Build Your Own Tenable Holdings Narrative

If you would rather dig into the numbers and form your own opinion, you can build a personalized growth story in under three minutes. Do it your way

A great starting point for your Tenable Holdings research is our analysis highlighting 5 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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