Let’s talk about the popular CyberArk Software Ltd. (NASDAQ:CYBR). The company’s stock has seen a significant increase in its share price of 25% in the last few months on the NASDAQGS. The recent rise in the share price has brought the company closer to its annual high. Since many analysts cover large-cap stocks, we can expect that any price-sensitive announcements are already factored into the stock price. However, can the stock still trade at a relatively low price? Let’s take a closer look at CyberArk Software’s valuation and outlook to determine if there is still a good opportunity.
Check out our latest analysis for CyberArk Software
Is CyberArk software still cheap?
Good news, investors! CyberArk software is still cheap. Our valuation model shows that the stock has an intrinsic value of $362.94, which is above what the market currently values for the company. This indicates a potential opportunity to buy low. What’s even more interesting is that CyberArk Software’s share price is quite volatile, which gives us more chances to buy since the share price could go lower (or rise) in the future. This is based on its high beta, which is a good indicator of how much a stock is moving relative to the rest of the market.
What does the future of CyberArk software look like?
Future perspective is an important aspect when considering buying stocks, especially if you are an investor looking to grow your portfolio. While value investors would argue that intrinsic value over price is most important, a more compelling investment thesis would be high growth potential at a low price. Although in CyberArk Software’s case, relatively unexciting earnings growth of 9.7% is expected, which does not help build its investment case. Growth does not seem to be the main reason for the decision to buy CyberArk Software, at least in the near term.
What does this mean for you?
Are you a shareholder? Although growth is relatively muted, as CYBR is currently undervalued, it may be a good time to accumulate more of your holdings in the stock. However, there are other factors such as capital structure to consider that could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on CYBR for a while, now might be the time to get into the stock. Its future prospects are not yet fully reflected in the current share price, which means it’s not too late to buy CYBR. But before taking any investment decision, consider other factors such as the track record of its management team, to make an informed investment decision.
If you want to learn more about CyberArk Software as a company, it’s important to be aware of all the risks it faces. We found at Simply Wall St 1 warning sign for CyberArk software and we think they deserve your attention.
If you are no longer interested in CyberArk Software, you can use our free platform to view our list of over 50 other stocks with high growth potential.
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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 as financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. We aim to provide you with long-term focused analysis driven by fundamental data. Please note that our analysis may not take into account the company’s latest price-sensitive announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.