Pure Storage, Inc.

NYSE:PSTG Stock Report

Market Cap: US$20.8b

Pure Storage Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: PSTG ($62.48) is trading above our estimate of fair value ($50.19)

Significantly Below Fair Value: PSTG is trading above our estimate of fair value.

Key Valuation Metric

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

Key metric: As PSTG is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for PSTG. This is calculated by dividing PSTG's market cap by their current revenue.
What is PSTG's PS Ratio?
PS Ratio6.6x
SalesUS$3.08b
Market CapUS$20.76b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for PSTG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.7x
NTAP NetApp
3.7x5.2%US$23.8b
HPE Hewlett Packard Enterprise
0.9x4.8%US$28.5b
WDC Western Digital
1.4x8.8%US$21.0b
HPQ HP
0.6x1.8%US$31.2b
PSTG Pure Storage
6.6x12.1%US$20.8b

Price-To-Sales vs Peers: PSTG is expensive based on its Price-To-Sales Ratio (6.6x) compared to the peer average (1.7x).

Price to Sales Ratio vs Industry

How does PSTG's PS Ratio compare vs other companies in the US Tech Industry?

4 CompaniesPrice / SalesEstimated GrowthMarket Cap
XRX Xerox Holdings
0.2x-0.5%US$1.14b
BRQS.F Borqs Technologies
0.2xn/aUS$7.35m
BOXL Boxlight
0.03x-1.5%US$4.01m
DBDQ.Q Diebold Nixdorf
0.0005x6.6%US$1.86m
No more companies available in this PS range
PSTG 6.6xIndustry Avg. 1.3xNo. of Companies6PS012345+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: PSTG is expensive based on its Price-To-Sales Ratio (6.6x) compared to the US Tech industry average (1.3x).

Price to Sales Ratio vs Fair Ratio

What is PSTG'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.

PSTG PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio6.6x
Fair PS Ratio8.3x

Price-To-Sales vs Fair Ratio: PSTG is good value based on its Price-To-Sales Ratio (6.6x) compared to the estimated Fair Price-To-Sales Ratio (8.3x).

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 PSTG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$62.48
US$71.78
+14.9%
14.5%US$93.00US$47.00n/a21
Dec ’25US$52.99
US$64.86
+22.4%
16.0%US$93.00US$45.00n/a20
Nov ’25US$50.95
US$65.28
+28.1%
16.4%US$93.00US$45.00n/a18
Oct ’25US$48.77
US$64.12
+31.5%
13.3%US$80.00US$45.00n/a18
Sep ’25US$51.29
US$65.80
+28.3%
12.8%US$80.00US$45.00n/a19
Aug ’25US$56.82
US$70.90
+24.8%
12.3%US$80.00US$47.00n/a19
Jul ’25US$65.51
US$70.74
+8.0%
12.9%US$80.00US$44.00n/a19
Jun ’25US$60.29
US$70.56
+17.0%
13.0%US$80.00US$44.00n/a18
May ’25US$50.13
US$56.11
+11.9%
12.9%US$66.00US$44.00n/a18
Apr ’25US$52.06
US$53.56
+2.9%
12.4%US$66.00US$44.00n/a18
Mar ’25US$55.33
US$51.06
-7.7%
8.4%US$60.00US$44.00n/a16
Feb ’25US$40.65
US$42.69
+5.0%
12.3%US$58.00US$35.00n/a16
Jan ’25US$35.66
US$41.75
+17.1%
11.9%US$58.00US$35.00n/a18
Dec ’24US$33.15
US$41.38
+24.8%
11.8%US$58.00US$35.00US$52.9917
Nov ’24US$34.07
US$43.91
+28.9%
10.2%US$58.00US$38.00US$50.9517
Oct ’24US$35.62
US$43.26
+21.5%
6.8%US$50.00US$38.00US$48.7717
Sep ’24US$38.36
US$43.36
+13.0%
6.6%US$50.00US$38.00US$51.2918
Aug ’24US$37.62
US$40.81
+8.5%
10.3%US$47.00US$31.00US$56.8218
Jul ’24US$36.82
US$40.76
+10.7%
10.6%US$47.00US$31.00US$65.5117
Jun ’24US$34.28
US$37.49
+9.4%
10.8%US$47.00US$31.00US$60.2919
May ’24US$23.04
US$35.65
+54.7%
12.8%US$47.00US$30.00US$50.1319
Apr ’24US$25.51
US$35.65
+39.7%
12.8%US$47.00US$30.00US$52.0619
Mar ’24US$28.79
US$38.65
+34.2%
9.5%US$47.00US$32.30US$55.3319
Feb ’24US$29.55
US$38.75
+31.1%
9.5%US$47.00US$32.30US$40.6519
Jan ’24US$26.76
US$38.70
+44.6%
9.6%US$47.00US$32.30US$35.6619
Dec ’23US$30.25
US$38.61
+27.6%
10.1%US$47.00US$30.50US$33.1519

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/30 23:05
End of Day Share Price 2024/12/30 00:00
Earnings2024/11/03
Annual Earnings2024/02/04

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Pure Storage, Inc. is covered by 41 analysts. 21 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jayson NolandBaird
Ishan MajumdarBaptista Research
Timothy LongBarclays