Comparing market capitalization
Splunk’s valuation metrics
The graph above compares Splunk’s, Teradata’s, and Tableau’s market caps. On May 15, Splunk was trading at a forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple of ~65.7x. In contrast, Teradata and Tableau had forward EV-to-EBITDA multiples of ~11.7x and ~314.0x, respectively. Splunk’s price-to-free cash flow multiple was ~67.6x, whereas peers Teradata and Tableau had multiples of ~28.3x and ~49.9x, respectively.
On May 15, Splunk stock closed at $115.10, close to its lower Bollinger Band of $96. This value suggests that the stock is oversold, and investors could take it as a “buy” signal.
Short interest ratio
On May 15, Splunk stock’s short interest as a percentage of its shares outstanding (or short interest ratio) was ~2.9%. Generally, a short interest ratio greater than 40.0% suggests an impending stock price fall.
Historic stock returns
Splunk stock has risen 65.6% in the last year and 8.6% in the last month. The stock has fallen 0.05% in the last five days.