F5 Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • PM vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of FFIV when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FFIV ($185.83) is trading below our estimate of fair value ($444.6)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

FFIV key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.7x
Enterprise Value/EBITDA14.3x
PEG Ratio1.9x

Price to Earnings Ratio vs Peers

How does FFIV's PE Ratio compare to its peers?

The above table shows the PE ratio for FFIV vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average30.5x
JNPR Juniper Networks
38.6x18.1%US$12.0b
CIEN Ciena
31.5x21.2%US$8.0b
UI Ubiquiti
19.7x32.6%US$7.3b
MSI Motorola Solutions
32.1x8.5%US$54.9b
23.7x12.3%US$10.9b

Price-To-Earnings vs Peers: FFIV is good value based on its Price-To-Earnings Ratio (23.7x) compared to the peer average (30.5x).


Price to Earnings Ratio vs Industry

How does FFIV's PE Ratio compare vs other companies in the US Communications Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a7.3%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a7.3%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: FFIV is good value based on its Price-To-Earnings Ratio (23.7x) compared to the US Communications industry average (31.5x).


Price to Earnings Ratio vs Fair Ratio

What is FFIV's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FFIV PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.7x
Fair PE Ratio23.2x

PM vs Fair Ratio: FFIV is expensive based on its Price-To-Earnings Ratio (23.7x) compared to the estimated Fair Price-To-Earnings Ratio (23.2x).


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 FFIV forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$185.83
US$193.33
+4.0%
7.8%US$220.00US$160.00n/a12
Feb ’25US$185.86
US$190.98
+2.8%
9.0%US$220.00US$160.00n/a12
Jan ’25US$178.98
US$168.14
-6.1%
6.1%US$186.00US$150.00n/a13
Dec ’24US$172.60
US$166.22
-3.7%
5.7%US$186.00US$150.00n/a13
Nov ’24US$151.92
US$166.22
+9.4%
5.7%US$186.00US$150.00n/a13
Oct ’24US$161.14
US$168.46
+4.5%
5.9%US$193.00US$150.00n/a13
Sep ’24US$164.61
US$166.63
+1.2%
6.6%US$193.00US$150.00n/a13
Aug ’24US$159.88
US$166.63
+4.2%
6.6%US$193.00US$150.00n/a13
Jul ’24US$146.26
US$153.71
+5.1%
9.1%US$179.00US$132.00n/a13
Jun ’24US$146.25
US$152.94
+4.6%
9.3%US$179.00US$132.00n/a13
May ’24US$134.26
US$153.54
+14.4%
9.0%US$179.00US$132.00n/a14
Apr ’24US$145.69
US$166.84
+14.5%
7.4%US$199.00US$150.00n/a16
Mar ’24US$144.04
US$166.78
+15.8%
7.3%US$199.00US$150.00n/a16
Feb ’24US$150.35
US$166.78
+10.9%
7.3%US$199.00US$150.00US$185.8616
Jan ’24US$143.51
US$178.31
+24.2%
10.6%US$212.00US$150.00US$178.9816
Dec ’23US$155.03
US$178.31
+15.0%
10.6%US$212.00US$150.00US$172.6016
Nov ’23US$144.54
US$178.31
+23.4%
10.6%US$212.00US$150.00US$151.9216
Oct ’23US$144.73
US$197.06
+36.2%
16.8%US$303.00US$170.00US$161.1416
Sep ’23US$155.30
US$195.06
+25.6%
18.2%US$303.00US$140.00US$164.6116
Aug ’23US$165.55
US$195.06
+17.8%
18.2%US$303.00US$140.00US$159.8816
Jul ’23US$153.34
US$215.81
+40.7%
14.1%US$303.00US$155.00US$146.2616
Jun ’23US$161.89
US$215.81
+33.3%
14.1%US$303.00US$155.00US$146.2516
May ’23US$167.41
US$217.38
+29.8%
14.3%US$303.00US$155.00US$134.2616
Apr ’23US$209.17
US$244.71
+17.0%
13.4%US$303.00US$176.00US$145.6917
Mar ’23US$196.49
US$244.71
+24.5%
13.4%US$303.00US$176.00US$144.0417
Feb ’23US$205.96
US$242.94
+18.0%
13.6%US$303.00US$176.00US$150.3516

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


Discover undervalued companies

Price7D1Y
Mkt CapP/EGrowth
Price7D1Y
Mkt CapP/EGrowth
Price7D1Y
Mkt CapP/EGrowth
Price7D1Y
Mkt CapP/EGrowth
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.