What Recent Price Rebound Means for SentinelOne Stock Valuation in 2025

Thinking about what to do with SentinelOne stock right now? You are definitely not alone. With the cybersecurity sector evolving rapidly, the market appears uncertain about this stock. SentinelOne has had a volatile year, with the price declining significantly over the past 12 months, down nearly 29.4%. Even year-to-date, it has slipped about 24.9%. However, just in the past week, the stock rebounded almost 4%, which could indicate a possible sentiment shift or renewed optimism regarding growth prospects.

While many investors get caught up in the excitement, it is important to look beyond short-term swings and focus on what truly matters: valuation. SentinelOne currently trades at $16.95 per share, which represents a discount of roughly 36.3% compared to the latest analyst price target of $23.10. Additionally, if you use a discounted cash flow approach, there is an additional 33.9% intrinsic discount. When reviewing all key valuation checks, SentinelOne scores a 4 out of 6, suggesting it is undervalued in most relevant categories.

So, is now the time to act, or is caution still the smartest approach? Next, we will break down the various ways analysts and investors evaluate a company’s true worth. And just when you think you have seen every method available, we will introduce a fresh perspective on valuation you may find valuable.

SentinelOne delivered -29.4% returns over the last year. See how this stacks up to the rest of the Software industry.

Approach 1: SentinelOne Cash Flows

The Discounted Cash Flow (DCF) model estimates a company's value by projecting its future free cash flows and then discounting them back to their present value. This method provides a clearer picture of intrinsic worth based on underlying fundamentals rather than market noise.

SentinelOne's latest reported free cash flow stands at $15.7 million. Looking ahead, analysts project significant growth, with free cash flow expected to reach $703.8 million in 2035. This upward trajectory reflects a robust expansion in business operations and efficient cash generation over the next decade.

Using a two-stage Free Cash Flow to Equity model, these projections yield an intrinsic value of $25.65 per share for SentinelOne. When compared to the current market price of $16.95, this indicates the stock is trading at a 33.9% discount to its estimated fair value, suggesting it is substantially undervalued according to this approach.

Result: UNDERVALUED

Our DCF analysis suggests SentinelOne is undervalued by 33.9%. Track this in your watchlist or portfolio, or discover more undervalued stocks based on DCF analysis.

Approach 2: SentinelOne Price vs Sales

For a growing technology company like SentinelOne, the Price-to-Sales (P/S) ratio is often the preferred metric for valuation. This is particularly relevant for businesses not yet consistently profitable, as sales figures tend to be more stable and offer a clearer reflection of growth potential than earnings at this stage.

The appropriate P/S ratio depends on a variety of factors, including the speed at which a company is expanding, its profit margins, and the level of risk investors associate with the business. High-growth tech stocks generally have above-average ratios, especially if their prospects for future profits appear strong.

Currently, SentinelOne trades at a P/S ratio of 6.49x. This is higher than the broader Software industry average of 4.91x, but below the peer group average of 8.10x. Simply Wall St’s Fair Ratio, which estimates where the multiple should be based on growth, margins, industry dynamics, and company-specific risks, is 7.06x. Since the current P/S ratio is slightly below this level, it may indicate the stock is modestly undervalued when considering its outlook and risk profile.

Result: UNDERVALUED

PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your SentinelOne Narrative

A Narrative is a simple, approachable way to express your perspective on a company by combining the story you believe about its future with your expectations for revenue, earnings, and margins. This approach turns personal insights into financial forecasts and a fair value estimate.

This method connects the big picture reasons behind a company’s performance, such as its shift into AI-native cybersecurity or new partnerships, directly to what those moves might mean for future profits and share price. Narratives are an easy-to-use, interactive tool built right into the Simply Wall St platform. They empower investors to add their own voice alongside the numbers and instantly see how new developments impact their view.

By comparing your Narrative’s fair value to today’s price, you can make more informed and confident decisions about when to buy, hold, or sell. Narratives update dynamically, so your outlook adjusts with company news, earnings, or industry shifts.

For example, the most optimistic investors recently set SentinelOne’s fair value above $36 per share, while the most cautious see it near $17. Each reflects a different belief about future growth or risks, showing how Narratives let you act on your unique view.

Do you think there's more to the story for SentinelOne? Create your own Narrative to let the Community know!

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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