We’ve recently updated our valuation analysis.

Cloudflare Valuation

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

[object Object] Score

0/6

Valuation Score 0/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

NET 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/Revenue17.7x
Enterprise Value/EBITDA-121.2x
PEG Ration/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for NET vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average5.7x
MDB MongoDB
10.2x23.4%US$11.0b
TWLO Twilio
2.5x15.4%US$9.0b
OKTA Okta
6x17.9%US$10.4b
AKAM Akamai Technologies
4.1x6.5%US$14.7b
NET Cloudflare
17.8x27.3%US$15.9b

Price-To-Sales vs Peers: NET is expensive based on its Price-To-Sales Ratio (17.8x) compared to the peer average (5.7x).


Price to Earnings Ratio vs Industry

How does NET's PE Ratio compare vs other companies in the US IT Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.7%
n/an/an/a

Price-To-Sales vs Industry: NET is expensive based on its Price-To-Sales Ratio (17.8x) compared to the US IT industry average (2.4x)


Price to Sales Ratio vs Fair Ratio

What is NET'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.

NET PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio17.8x
Fair PS Ratio11.3x

Price-To-Sales vs Fair Ratio: NET is expensive based on its Price-To-Sales Ratio (17.8x) compared to the estimated Fair Price-To-Sales Ratio (11.3x).


Share Price vs Fair Value

What is the Fair Price of NET when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NET ($48.37) is trading above our estimate of fair value ($47.69)

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


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 NET forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$48.37
US$61.82
+27.8%
18.3%US$95.00US$42.00n/a22
Nov ’23US$55.58
US$82.71
+48.8%
27.0%US$150.00US$57.00n/a21
Oct ’23US$55.31
US$89.95
+62.6%
37.8%US$200.00US$50.00n/a20
Sep ’23US$59.32
US$90.80
+53.1%
37.0%US$200.00US$50.00n/a20
Aug ’23US$51.16
US$89.68
+75.3%
43.3%US$200.00US$42.00n/a19
Jul ’23US$45.90
US$99.89
+117.6%
33.8%US$200.00US$55.00n/a19
Jun ’23US$55.11
US$102.26
+85.6%
32.1%US$200.00US$55.00n/a19
May ’23US$86.14
US$151.25
+75.6%
30.4%US$250.00US$95.00n/a20
Apr ’23US$123.50
US$154.00
+24.7%
29.0%US$250.00US$95.00n/a20
Mar ’23US$117.65
US$158.16
+34.4%
28.1%US$250.00US$100.00n/a19
Feb ’23US$102.43
US$162.37
+58.5%
34.1%US$250.00US$91.00n/a19
Jan ’23US$131.50
US$207.56
+57.8%
20.0%US$250.00US$91.00n/a16
Dec ’22US$164.21
US$215.56
+31.3%
16.8%US$250.00US$91.00US$49.5716
Nov ’22US$194.26
US$140.27
-27.8%
21.5%US$200.00US$91.00US$55.5815
Oct ’22US$114.98
US$124.13
+8.0%
10.5%US$140.00US$91.00US$55.3115
Sep ’22US$126.86
US$125.47
-1.1%
10.0%US$140.00US$91.00US$59.3215
Aug ’22US$118.63
US$104.60
-11.8%
15.3%US$135.00US$77.00US$51.1615
Jul ’22US$104.39
US$98.63
-5.5%
12.8%US$135.00US$77.00US$45.9016
Jun ’22US$83.07
US$96.20
+15.8%
9.1%US$110.00US$77.00US$55.1115
May ’22US$84.74
US$97.64
+15.2%
8.6%US$110.00US$77.00US$86.1414
Apr ’22US$71.79
US$100.38
+39.8%
5.9%US$110.00US$88.00US$123.5013
Mar ’22US$76.90
US$98.27
+27.8%
8.1%US$105.00US$75.00US$117.6515
Feb ’22US$80.48
US$79.13
-1.7%
11.4%US$97.00US$67.00US$102.4315
Jan ’22US$75.99
US$72.60
-4.5%
19.7%US$97.00US$30.00US$131.5015
Dec ’21US$72.29
US$69.06
-4.5%
19.1%US$87.00US$30.00US$164.2116

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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