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An Analysis of FireEye’s Valuation compared to Its Peers’

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Updated

Peer comparison based on market cap

On May 15, FireEye’s (FEYE) market cap stood at $3.4 billion. Similarly, the market caps of other cybersecurity service providers Palo Alto Networks (PANW) and Fortinet (FTNT) came in at $18.4 billion and $9.9 billion, respectively.

In the graph above, we can see a comparison of the market caps of FireEye, Palo Alto Networks, and Fortinet.

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FireEye’s valuation metrics

On May 15, FireEye was trading at a forward EV-to-EBITDA (enterprise value-to-EBITDA) multiple of ~35.31x. In contrast, Palo Alto Networks and Fortinet had forward EV-to-EBITDA multiples of ~32.05x and ~21.33x, respectively.

On May 15, FireEye was trading at a forward PE multiple of ~100.0x, whereas on the same date, Palo Alto Networks and Fortinet had forward PE multiples of ~41.09x and ~33.34x, respectively.

Bollinger Band

In the May 15 trading session, FireEye stock closed at $17.42, close to its lower Bollinger Band level of $17. This value indicates that the stock has been oversold, and investors could take it as a “buy” signal.

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Short interest ratio

On May 15, FireEye stock’s short interest ratio was ~4.2%. Generally, when a stock’s short interest ratio is higher than 40%, it indicates that investors and traders expect its price to fall.

Historic stock return

In the last year, FireEye stock has risen 16%, while in the last month, it’s fallen 6.5%. The company’s stock has fallen 3.4% in the last five days.

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