CyberArk stock returns
Cybersecurity company CyberArk (CYBR) has been trading flat since the start of May this year. However, the stock has easily outperformed peers and broader markets over the last few years. CyberArk stock is up 73.0% since the start of 2019.
The stock has risen over 33.4% annually in the last five years. In comparison, its sales have risen 27.0% while earnings have risen by 25.0% annually in the same period. CyberArk is a market leader in the privileged access security space and has a customer base of 4,600.
Is the stock overvalued?
CYBR stock is trading at a forward PE multiple of 51.5x. In comparison, its earnings are estimated by analysts to rise by just 1.9% this year and gain 18.6% in 2020.
Its earnings are expected to rise at a CAGR (compound annual growth rate) of 19.0% over the next five years, while sales are estimated by analysts to rise 20.0% annually in the next three years.
CYBR stock looks very expensive even after considering its double-digit earnings and sales growth going forward. Given its PE multiple, CYBR stock will be overvalued even if it loses 50.0% in market value.
How does Wall Street view CyberArk?
Out of the 21 analysts tracking CyberArk, 11 recommend a “buy,” ten recommend a “hold,” and none recommend a “sell.” The analysts have an average target price of $137.63, which indicates that the stock has an upside potential of 7.3% from current levels.