Snowflake Valuation

Is SNOW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 SNOW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SNOW ($170) is trading below our estimate of fair value ($231.08)

Significantly Below Fair Value: SNOW is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for SNOW?

Key metric: As SNOW is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for SNOW. This is calculated by dividing SNOW's market cap by their current revenue.
What is SNOW's PS Ratio?
PS Ratio16.4x
SalesUS$3.41b
Market CapUS$56.76b

Price to Sales Ratio vs Peers

How does SNOW's PS Ratio compare to its peers?

The above table shows the PS ratio for SNOW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average15.2x
NET Cloudflare
25.1x19.9%US$39.3b
MDB MongoDB
11.2x15.1%US$22.1b
SHOP Shopify
18.1x19.4%US$151.7b
GDDY GoDaddy
6.5x7.5%US$29.2b
SNOW Snowflake
16.4x18.5%US$56.8b

Price-To-Sales vs Peers: SNOW is expensive based on its Price-To-Sales Ratio (16.4x) compared to the peer average (15.2x).


Price to Sales Ratio vs Industry

How does SNOW's PS Ratio compare vs other companies in the US IT Industry?

27 CompaniesPrice / SalesEstimated GrowthMarket Cap
KD Kyndryl Holdings
0.5x1.6%US$8.31b
DXC DXC Technology
0.3x-2.0%US$3.90b
RXT Rackspace Technology
0.2x0.4%US$580.30m
UIS Unisys
0.2x3.4%US$491.09m
SNOW 16.4xIndustry Avg. 2.6xNo. of Companies27PS02.44.87.29.612+
27 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: SNOW is expensive based on its Price-To-Sales Ratio (16.4x) compared to the US IT industry average (2.6x).


Price to Sales Ratio vs Fair Ratio

What is SNOW'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.

SNOW PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio16.4x
Fair PS Ratio13x

Price-To-Sales vs Fair Ratio: SNOW is expensive based on its Price-To-Sales Ratio (16.4x) compared to the estimated Fair Price-To-Sales Ratio (13x).


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 SNOW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$170.00
US$183.99
+8.2%
12.0%US$225.00US$115.00n/a39
Dec ’25US$174.80
US$180.38
+3.2%
12.1%US$225.00US$115.00n/a39
Nov ’25US$115.49
US$167.17
+44.7%
15.0%US$220.00US$105.00n/a37
Oct ’25US$110.23
US$167.44
+51.9%
14.7%US$220.00US$105.00n/a37
Sep ’25US$114.23
US$167.59
+46.7%
14.1%US$220.00US$105.00n/a37
Aug ’25US$124.20
US$191.83
+54.5%
14.6%US$236.00US$105.00n/a37
Jul ’25US$142.77
US$196.51
+37.6%
12.9%US$240.00US$125.00n/a37
Jun ’25US$136.18
US$204.46
+50.1%
11.3%US$240.00US$125.00n/a38
May ’25US$156.14
US$206.98
+32.6%
12.6%US$246.00US$125.00n/a40
Apr ’25US$160.52
US$207.55
+29.3%
12.6%US$246.00US$125.00n/a39
Mar ’25US$186.72
US$207.36
+11.1%
14.3%US$290.00US$120.00n/a40
Feb ’25US$199.94
US$219.93
+10.0%
29.9%US$600.00US$120.00n/a41
Jan ’25US$199.00
US$216.85
+9.0%
30.2%US$600.00US$120.00n/a41
Dec ’24US$185.97
US$214.49
+15.3%
30.9%US$600.00US$120.00US$174.8041
Nov ’24US$144.26
US$198.12
+37.3%
34.3%US$600.00US$105.00US$115.4941
Oct ’24US$152.77
US$198.45
+29.9%
34.7%US$600.00US$105.00US$110.2340
Sep ’24US$157.08
US$198.25
+26.2%
35.1%US$600.00US$105.00US$114.2339
Aug ’24US$176.58
US$198.17
+12.2%
34.9%US$600.00US$105.00US$124.2040
Jul ’24US$175.98
US$190.94
+8.5%
30.2%US$500.00US$105.00US$142.7738
Jun ’24US$167.28
US$181.08
+8.2%
31.9%US$500.00US$105.00US$136.1838
May ’24US$146.97
US$184.39
+25.5%
33.2%US$500.00US$105.00US$156.1436
Apr ’24US$154.29
US$181.08
+17.4%
33.9%US$500.00US$105.00US$160.5238
Mar ’24US$154.50
US$186.38
+20.6%
33.8%US$500.00US$105.00US$186.7239
Feb ’24US$165.22
US$185.46
+12.3%
33.8%US$500.00US$105.00US$199.9439
Jan ’24US$143.54
US$191.61
+33.5%
32.3%US$500.00US$105.00US$199.0036
Dec ’23US$154.04
US$197.51
+28.2%
31.2%US$500.00US$105.00US$185.9735

Analyst Forecast: Target price is less than 20% higher than the current share price.


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