A Look at Rubrik (RBRK) Valuation Following Strategic AWS Partnership for Cloud Cybersecurity and AI

Rubrik (RBRK) just revealed a new strategic collaboration agreement with Amazon Web Services, aimed at boosting cyber resilience and secure AI adoption for organizations operating in the cloud. This partnership highlights Rubrik’s Preemptive Recovery Engine and enhanced data protection features.

See our latest analysis for Rubrik.

Rubrik’s strategic partnership with AWS comes on the heels of impressive growth, backed by rising demand for cybersecurity and AI-driven solutions. Despite a short-term pullback—the 30-day share price return stands at -9.75%—Rubrik has delivered a standout 59% total return over the past year, signaling that long-term investors are still seeing momentum build.

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With new strategic partnerships fueling momentum and shares pulling back from recent highs, is Rubrik trading at a bargain with upside left on the table, or has the market already priced in its future growth prospects?

Most Popular Narrative: 39.5% Undervalued

Rubrik’s most popular narrative sets a fair value at $115.20, which is significantly above the last close price of $69.69. This suggests substantial upside potential if the underlying projections and catalysts play out as expected.

Rubrik's innovations and strategic cybersecurity focus enhance market share, revenue growth, and competitive positioning while expanding their total addressable market. Partnerships and enhanced recovery capabilities leverage enterprise needs, improving customer retention and profitability, fueling earnings growth and expanding their data security footprint.

Read the complete narrative.

Curious what bold assumptions drive this eye-catching valuation? The narrative is built around aggressive future growth, successful customer expansion, and profit margin changes that challenge the typical path for young tech companies. Want to see the numbers behind the optimism?

Result: Fair Value of $115.20 (UNDERVALUED)

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

However, aggressive competition in the cybersecurity sector and uncertain adoption timelines for new AI solutions could challenge Rubrik’s ambitious growth outlook.

Find out about the key risks to this Rubrik narrative.

Another View: Market Multiples Tell a Cautionary Story

While Rubrik appears undervalued based on future growth projections, looking at its current price-to-sales ratio paints a more conservative picture. Rubrik trades at 12.7 times sales, much higher than the US Software industry average of 4.6 times and above a fair ratio of 11.8. This could expose investors to more downside if high expectations are not met. The question remains, does the optimism risk outpacing reality?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Rubrik Narrative

If you have a different view or want to dig into the data yourself, you can build your own Rubrik story in under three minutes with Do it your way.

A great starting point for your Rubrik research is our analysis highlighting 3 key rewards and 2 important warning signs 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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