Assessing Rubrik’s Valuation After CrowdStrike Partnership and Raised Full-Year Guidance

Rubrik (RBRK) just shook things up with its new, deeper integration with CrowdStrike’s Falcon cybersecurity platform. By linking Rubrik Identity Resilience with Falcon Next-Gen Identity Security, the company is not only making it easier for organizations to roll back malicious identity changes, but also arming security teams with more tools to identify and outpace emerging threats. For investors who have been waiting for Rubrik to prove its edge in the competitive identity security landscape, this alliance positions the company as a serious player in defending hybrid cloud environments at a time when cyberattacks are increasing in sophistication.

This strategic move comes right on the heels of an upbeat earnings report and even raised guidance for the year, showing that Rubrik is innovating in cybersecurity while also growing sales and shrinking losses. Over the past year, Rubrik’s stock has more than doubled with a 141% return, buoyed by strong annual revenue growth of 19% and shrinking net losses. While there was a dip in the past month and quarter, momentum for the year seems clear, especially against a backdrop of high-profile partnerships and new product launches.

With all this recent attention and a share price that has come a long way, some may be wondering if Rubrik is ready for another move higher or if investors have already factored in the company’s growth story.

Most Popular Narrative: 30.1% Undervalued

The most widely followed narrative places Rubrik at a significant discount to its estimated fair value. This outlook is driven by strong product innovation, strategic partnerships, and expanding revenue opportunities.

Strategic partnerships, such as with Microsoft, support Rubrik's offerings in Azure and M365 environments. These alliances can foster growth in the adoption of their data security solutions, positively impacting revenue and customer expansion opportunities.

There is a pivotal growth story hiding in plain sight. Behind the headline price target is a bold projection for where Rubrik’s margins and future earnings could rise, if everything aligns as analysts expect. Want the full blueprint behind this high-stakes valuation call? Explore the surprising combination of aggressive revenue forecasts and ambitious profit margin improvements that drive this narrative.

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 and unpredictable shifts in cloud or AI strategy could quickly dampen Rubrik’s impressive growth story and investor optimism.

Find out about the key risks to this Rubrik narrative.

Another View: What Do Market Metrics Tell Us?

Looking at Rubrik through the lens of its sales-based valuation, things appear less optimistic. Compared to the industry norm, the company’s price looks steep. Could the market be getting ahead of itself on growth expectations?

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

Stay updated when valuation signals shift by adding Rubrik to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Rubrik Narrative

Not sold on these perspectives or want to dive into the numbers yourself? It takes just a few minutes to create your own view on Rubrik's story. Do it your way

A great starting point for your Rubrik research is our analysis highlighting 2 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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