CGNT Valuation

Cognyte Software Ltd

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8.430

+0.06(0.717%)1D

CGNT Relative Valuation

CGNT's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, CGNT is overvalued; if below, it's undervalued.

Historical Valuation

Cognyte Software Ltd (CGNT) is now in the Overvalued zone, suggesting that its current forward PS ratio of 8.43 is considered Overvalued compared with the five-year average of -13.22. The fair price of Cognyte Software Ltd (CGNT) is between 2.02 to 3.74 according to relative valuation methord. Compared to the current price of 8.43 USD , Cognyte Software Ltd is Overvalued By 125.62%.

Relative Value

Fair Zone

2.02-3.74

Current Price：8.43

125.62%

Overvalued

46.83

Trailing

Forward

11.62

EV/EBITDA

Cognyte Software Ltd. (CGNT) has a current EV/EBITDA of 11.62. The 5-year average EV/EBITDA is -0.72. The thresholds are as follows: Strongly Undervalued below -87.44, Undervalued between -87.44 and -44.08, Fairly Valued between 42.64 and -44.08, Overvalued between 42.64 and 86.00, and Strongly Overvalued above 86.00. The current Forward EV/EBITDA of 11.62 falls within the Historic Trend Line -Fairly Valued range.

14.80

EV/EBIT

Cognyte Software Ltd. (CGNT) has a current EV/EBIT of 14.80. The 5-year average EV/EBIT is 3.37. The thresholds are as follows: Strongly Undervalued below -109.75, Undervalued between -109.75 and -53.19, Fairly Valued between 59.93 and -53.19, Overvalued between 59.93 and 116.49, and Strongly Overvalued above 116.49. The current Forward EV/EBIT of 14.80 falls within the Historic Trend Line -Fairly Valued range.

8.43

Cognyte Software Ltd. (CGNT) has a current PS of 8.43. The 5-year average PS is 1.80. The thresholds are as follows: Strongly Undervalued below -0.35, Undervalued between -0.35 and 0.72, Fairly Valued between 2.87 and 0.72, Overvalued between 2.87 and 3.95, and Strongly Overvalued above 3.95. The current Forward PS of 8.43 falls within the Strongly Overvalued range.

8.98

P/OCF

Cognyte Software Ltd. (CGNT) has a current P/OCF of 8.98. The 5-year average P/OCF is 0.59. The thresholds are as follows: Strongly Undervalued below -4.45, Undervalued between -4.45 and -1.93, Fairly Valued between 3.11 and -1.93, Overvalued between 3.11 and 5.63, and Strongly Overvalued above 5.63. The current Forward P/OCF of 8.98 falls within the Strongly Overvalued range.

11.18

P/FCF

Cognyte Software Ltd. (CGNT) has a current P/FCF of 11.18. The 5-year average P/FCF is 0.77. The thresholds are as follows: Strongly Undervalued below -5.84, Undervalued between -5.84 and -2.54, Fairly Valued between 4.07 and -2.54, Overvalued between 4.07 and 7.38, and Strongly Overvalued above 7.38. The current Forward P/FCF of 11.18 falls within the Strongly Overvalued range.

Cognyte Software Ltd (CGNT) has a current Price-to-Book (P/B) ratio of 3.03. Compared to its 3-year average P/B ratio of 2.43 , the current P/B ratio is approximately 24.62% higher. Relative to its 5-year average P/B ratio of 3.01, the current P/B ratio is about 0.63% higher. Cognyte Software Ltd (CGNT) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of -0.97%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of -1.36% , the current FCF yield is about -100.00% lower.

3.03

P/B

Median3y

2.43

Median5y

3.01

2.08

FCF Yield

Median3y

-0.97

Median5y

-1.36

Competitors Valuation Multiple

The average P/S ratio for CGNT's competitors is 6.26, providing a benchmark for relative valuation. Cognyte Software Ltd Corp (CGNT) exhibits a P/S ratio of 8.43, which is 34.75% above the industry average. Given its robust revenue growth of 15.52%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Ribbon Communications Inc

InnovAge Holding Corp

Weave Communications Inc

6.39

17.10%

498.58M

Performance Decomposition

Market capitalization of CGNT increased by 3.82% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -29.05 to -135.25.

The secondary factor is the Revenue Growth, contributed 15.52%to the performance.

Overall, the performance of CGNT in the past 1 year is driven by P/E Change. Which is more unsustainable.

15.52%

84.41M → 97.51M

Revenue Growth

-377.23%

-1.01 → 2.80

Margin Expansion

365.53%

-29.05 → -135.25

P/E Change

3.82%