FireEye (FEYE) stock has been very volatile in the last five years. Slowing revenue growth amid competition from cybersecurity giants has sent the stock spiraling downwards from around $55 in June 2015 to its current price of $16.60. FireEye stock (FEYE) has gained just over 3.5% since the start of April 2019. The stock has underperformed the market and has risen just 2.4% this year.
FireEye stock has risen at a CAGR (compound annual growth rate) of 8.5% in the last three years. However, it has declined by 12% annually in the last five years. FireEye’s stock is currently trading at $16.6, which is 17% above its 52-week low of $14.20 and 19% below its 52-week high of $20.61.
Sign up for Bagels & Stox, our witty take on the top market and investment news, straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.
Is FireEye stock trading at an attractive valuation?
FireEye is trading at a forward PE multiple of 87.76x for 2019. In comparison, the company’s earnings are estimated to rise by 137.5% in 2019 and then gain 63% in 2020, which indicates that the stock is undervalued at current prices.
Its earnings are estimated to grow at a CAGR of 78% in the next five years while sales might rise by just 7% annually over the next three years.
Out of 29 analysts covering FireEye, 11 recommend a “buy” and 17 recommend a “hold.” There is one “sell” recommendation. The average 12-month price target for FireEye is $20, indicating the stock is trading at a discount of 20% to average estimates.