CHKP Valuation

Check Point Software Technologies Ltd

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193.140

+1.88(0.983%)1D

Overview
Forecast
Valuation
Earnings

CHKP Relative Valuation

CHKP'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, CHKP is overvalued; if below, it's undervalued.

Historical Valuation

Check Point Software Technologies Ltd (CHKP) is now in the Fair zone, suggesting that its current forward PE ratio of 18.70 is considered Fairly compared with the five-year average of 17.49. The fair price of Check Point Software Technologies Ltd (CHKP) is between 183.20 to 216.73 according to relative valuation methord.

Relative Value

Fair Zone

183.20-216.73

Current Price：193.14

Fair

18.70

Trailing

Forward

14.59

EV/EBITDA

Check Point Software Technologies Ltd. (CHKP) has a current EV/EBITDA of 14.59. The 5-year average EV/EBITDA is 12.80. The thresholds are as follows: Strongly Undervalued below 8.44, Undervalued between 8.44 and 10.62, Fairly Valued between 14.97 and 10.62, Overvalued between 14.97 and 17.15, and Strongly Overvalued above 17.15. The current Forward EV/EBITDA of 14.59 falls within the Historic Trend Line -Fairly Valued range.

15.27

EV/EBIT

Check Point Software Technologies Ltd. (CHKP) has a current EV/EBIT of 15.27. The 5-year average EV/EBIT is 13.15. The thresholds are as follows: Strongly Undervalued below 8.53, Undervalued between 8.53 and 10.84, Fairly Valued between 15.46 and 10.84, Overvalued between 15.46 and 17.77, and Strongly Overvalued above 17.77. The current Forward EV/EBIT of 15.27 falls within the Historic Trend Line -Fairly Valued range.

7.43

Check Point Software Technologies Ltd. (CHKP) has a current PS of 7.43. The 5-year average PS is 7.28. The thresholds are as follows: Strongly Undervalued below 5.65, Undervalued between 5.65 and 6.47, Fairly Valued between 8.10 and 6.47, Overvalued between 8.10 and 8.92, and Strongly Overvalued above 8.92. The current Forward PS of 7.43 falls within the Historic Trend Line -Fairly Valued range.

17.54

P/OCF

Check Point Software Technologies Ltd. (CHKP) has a current P/OCF of 17.54. The 5-year average P/OCF is 15.67. The thresholds are as follows: Strongly Undervalued below 10.79, Undervalued between 10.79 and 13.23, Fairly Valued between 18.12 and 13.23, Overvalued between 18.12 and 20.56, and Strongly Overvalued above 20.56. The current Forward P/OCF of 17.54 falls within the Historic Trend Line -Fairly Valued range.

19.48

P/FCF

Check Point Software Technologies Ltd. (CHKP) has a current P/FCF of 19.48. The 5-year average P/FCF is 16.02. The thresholds are as follows: Strongly Undervalued below 10.74, Undervalued between 10.74 and 13.38, Fairly Valued between 18.66 and 13.38, Overvalued between 18.66 and 21.30, and Strongly Overvalued above 21.30. The current Forward P/FCF of 19.48 falls within the Overvalued range.

Check Point Software Technologies Ltd (CHKP) has a current Price-to-Book (P/B) ratio of 7.30. Compared to its 3-year average P/B ratio of 6.50 , the current P/B ratio is approximately 12.23% higher. Relative to its 5-year average P/B ratio of 5.88, the current P/B ratio is about 24.03% higher. Check Point Software Technologies Ltd (CHKP) has a Forward Free Cash Flow (FCF) yield of approximately 5.55%. Compared to its 3-year average FCF yield of 5.85%, the current FCF yield is approximately -5.27% lower. Relative to its 5-year average FCF yield of 6.35% , the current FCF yield is about -12.68% lower.

7.30

P/B

Median3y

6.50

Median5y

5.88

5.55

FCF Yield

Median3y

5.85

Median5y

6.35

Competitors Valuation Multiple

The average P/S ratio for CHKP's competitors is 6.67, providing a benchmark for relative valuation. Check Point Software Technologies Ltd Corp (CHKP) exhibits a P/S ratio of 7.43, which is 11.46% above the industry average. Given its robust revenue growth of 6.02%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

CHKP.O

Check Point Software Technologies Ltd

Performance Decomposition

Market capitalization of CHKP increased by 0.17% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 627.40M to 665.20M.

The secondary factor is the P/E Change, contributed -2.77%to the performance.

Overall, the performance of CHKP in the past 1 year is driven by Revenue Growth. Which is more sustainable.

6.02%

627.40M → 665.20M

Revenue Growth

-3.08%

31.46 → 30.49

Margin Expansion

-2.77%

25.87 → 25.15

P/E Change

0.17%