New Relic, Inc.

NYSE:NEWR Stock Report

Market Cap: US$6.2b

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

New Relic Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: NEWR ($86.99) is trading below our estimate of fair value ($152.88)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for NEWR. This is calculated by dividing NEWR's market cap by their current revenue.
What is NEWR's PS Ratio?
PS Ratio6.4x
SalesUS$967.64m
Market CapUS$6.18b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for NEWR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average9.8x
VERX Vertex
12.8x14.1%US$8.3b
SPSC SPS Commerce
11.3x15.1%US$6.9b
CCCS CCC Intelligent Solutions Holdings
7.8x8.7%US$7.2b
COUP Coupa Software
7.5x16.0%US$6.1b
NEWR New Relic
6.4x13.6%US$6.2b

Price-To-Sales vs Peers: NEWR is good value based on its Price-To-Sales Ratio (6.4x) compared to the peer average (10.4x).

Price to Sales Ratio vs Industry

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

70 CompaniesPrice / SalesEstimated GrowthMarket Cap
VYX NCR Voyix
0.6x-22.3%US$2.01b
PGY Pagaya Technologies
0.7x15.5%US$668.79m
XPER Xperi
0.9x1.8%US$445.16m
EGHT 8x8
0.5x1.5%US$346.25m
NEWR 6.4xIndustry Avg. 5.3xNo. of Companies70PS048121620+
70 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: NEWR is expensive based on its Price-To-Sales Ratio (6.4x) compared to the US Software industry average (4.3x).

Price to Sales Ratio vs Fair Ratio

What is NEWR'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.

NEWR PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio6.4x
Fair PS Ratio5.9x

Price-To-Sales vs Fair Ratio: NEWR is expensive based on its Price-To-Sales Ratio (6.4x) compared to the estimated Fair Price-To-Sales Ratio (5.9x).

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 NEWR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
US$86.30
0%
4.7%US$92.00US$75.00n/a10
Jan ’26n/a
US$86.30
0%
4.7%US$92.00US$75.00n/a10
Dec ’25n/a
US$86.30
0%
4.7%US$92.00US$75.00n/a10
Nov ’25n/a
US$86.30
0%
4.7%US$92.00US$75.00n/a10
Oct ’25n/a
US$86.30
0%
4.7%US$92.00US$75.00n/a10
Sep ’25n/a
US$86.30
0%
4.7%US$92.00US$75.00n/a10
Aug ’25n/a
US$86.30
0%
4.7%US$92.00US$75.00n/a10
Jul ’25n/a
US$86.30
0%
4.7%US$92.00US$75.00n/a10
Jun ’25n/a
US$86.30
0%
4.7%US$92.00US$75.00n/a10
May ’25n/a
US$86.30
0%
4.7%US$92.00US$75.00n/a10
Apr ’25n/a
US$86.30
0%
4.7%US$92.00US$75.00n/a10
Mar ’25n/a
US$86.30
0%
4.7%US$92.00US$75.00n/a10
Feb ’25n/a
US$86.30
0%
4.7%US$92.00US$75.00n/a10
Jan ’25n/a
US$86.30
0%
4.7%US$92.00US$75.00n/a10
Dec ’24n/a
US$86.30
0%
4.7%US$92.00US$75.00n/a10
Nov ’24US$86.64
US$86.30
-0.4%
4.7%US$92.00US$75.00n/a10
Oct ’24US$85.62
US$86.30
+0.8%
4.7%US$92.00US$75.00n/a10
Sep ’24US$85.35
US$87.09
+2.0%
5.3%US$95.00US$75.00n/a11
Aug ’24US$83.96
US$87.36
+4.1%
5.4%US$95.00US$75.00n/a11
Jul ’24US$65.44
US$86.38
+32.0%
12.8%US$113.00US$73.00n/a13
Jun ’24US$69.34
US$86.38
+24.6%
12.8%US$113.00US$73.00n/a13
May ’24US$71.51
US$81.31
+13.7%
12.2%US$100.00US$65.00n/a13
Apr ’24US$75.29
US$79.75
+5.9%
10.9%US$90.00US$65.00n/a12
Mar ’24US$74.37
US$79.75
+7.2%
10.9%US$90.00US$65.00n/a12
Feb ’24US$64.54
US$65.17
+1.0%
13.1%US$78.00US$55.00n/a12
Jan ’24US$56.45
US$67.25
+19.1%
13.2%US$80.00US$55.00n/a12
Analyst Price Target
Consensus Narrative from 10 Analysts
US$86.30
Fair Value
0.8% overvalued intrinsic discount
10
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2023/11/09 16:25
End of Day Share Price 2023/11/07 00:00
Earnings2023/09/30
Annual Earnings2023/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

New Relic, Inc. is covered by 24 analysts. 15 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Joseph BonnerArgus Research Company
William Kingsley CraneBerenberg
Keith BachmanBMO Capital Markets Equity Research