Rubrik (RBRK): Evaluating Valuation After New AI-Powered Resilience Solutions and Cognizant Partnership Announcement

Rubrik (NYSE:RBRK) just expanded its partnership with Cognizant, introducing a new Business Resilience-as-a-Service (BRaaS) solution. This offering is designed to help companies recover quickly from cyberattacks while also enabling safer AI adoption.

See our latest analysis for Rubrik.

Rubrik’s latest moves with Cognizant and its new Agent Cloud platform have come as momentum in its total shareholder return continues to impress. The return is up nearly 92% over the past year, far outpacing its 17% year-to-date share price gain. That said, shares have cooled somewhat in recent weeks, suggesting the market is absorbing all the excitement over AI-fueled resilience and cyber protections as investors look for the next big catalyst.

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With shares still trading at a notable discount to analyst targets but recent gains cooling, the big question is whether Rubrik has more room to run or if the market has already factored in its future growth potential.

Most Popular Narrative: 32.5% Undervalued

Rubrik’s most widely followed narrative sees its fair value at $115.20, significantly above the last close of $77.79. That spread reflects bold revenue ambitions and a bet on margin transformation over the next few years.

Rubrik’s strategic focus on cyber resilience, particularly through innovations like their Rubrik Security Cloud and integration with DSPM, positions them strongly against competitors, suggesting potential future gains in market share and revenue growth.

Read the complete narrative.

Curious what drives this bullish outlook? The narrative hinges on aggressive revenue expansion and a predicted profit turnaround that most of the market isn’t betting on yet. One or two bold assumptions could make or break everything investors expect about the company’s future. Want to see exactly how these forecasts turn into a much higher fair value? Dig in for the detailed playbook behind the headline number.

Result: Fair Value of $115.20 (UNDERVALUED)

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

However, if aggressive competition or unexpected setbacks in Rubrik’s AI and cloud strategies occur, the bullish outlook could be quickly undermined.

Find out about the key risks to this Rubrik narrative.

Another View: Looking Through the Lens of Sales Multiples

While analysts see Rubrik as undervalued, the company's price-to-sales ratio tells a more expensive story. At 14.2x, it is far above both the US Software industry average (5.3x) and its peers (10.7x). It is also higher than the fair ratio of 11.9x that the market could move towards. This signals potential valuation risk if growth slows. Is the premium truly justified?

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

Build Your Own Rubrik Narrative

If you’ve got your own take or want to dig into the numbers for yourself, shaping your own Rubrik story is fast and easy. 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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