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 Average10.3x
VERX Vertex
13.4x14.2%US$8.6b
SPSC SPS Commerce
11.9x14.2%US$7.3b
CCCS CCC Intelligent Solutions Holdings
8.5x7.8%US$8.0b
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?

76 CompaniesPrice / SalesEstimated GrowthMarket Cap
VYX NCR Voyix
0.6x-23.2%US$2.15b
PGY Pagaya Technologies
0.8x15.8%US$773.38m
XPER Xperi
0.8x1.8%US$418.27m
EGHT 8x8
0.6x1.1%US$415.50m
NEWR 6.4xIndustry Avg. 5.5xNo. of Companies76PS048121620+
76 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
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
Dec ’23US$58.18
US$67.18
+15.5%
13.8%US$80.00US$55.00n/a11
Nov ’23US$58.92
US$70.45
+19.6%
11.9%US$81.00US$57.00US$86.6411

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

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