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 18.99 is considered Fairly compared with the five-year average of 17.56. The fair price of Check Point Software Technologies Ltd (CHKP) is between 173.44 to 207.34 according to relative valuation methord.
Relative Value
Fair Zone
173.44-207.34
Current Price：195.83
Fair
18.99
PE
1Y
3Y
5Y
Trailing
Forward
14.65
EV/EBITDA
Check Point Software Technologies Ltd. (CHKP) has a current EV/EBITDA of 14.65. The 5-year average EV/EBITDA is 12.94. The thresholds are as follows: Strongly Undervalued below 8.48, Undervalued between 8.48 and 10.71, Fairly Valued between 15.17 and 10.71, Overvalued between 15.17 and 17.40, and Strongly Overvalued above 17.40. The current Forward EV/EBITDA of 14.65 falls within the Historic Trend Line -Fairly Valued range.
15.33
EV/EBIT
Check Point Software Technologies Ltd. (CHKP) has a current EV/EBIT of 15.33. The 5-year average EV/EBIT is 13.31. The thresholds are as follows: Strongly Undervalued below 8.57, Undervalued between 8.57 and 10.94, Fairly Valued between 15.68 and 10.94, Overvalued between 15.68 and 18.05, and Strongly Overvalued above 18.05. The current Forward EV/EBIT of 15.33 falls within the Historic Trend Line -Fairly Valued range.
7.21
PS
Check Point Software Technologies Ltd. (CHKP) has a current PS of 7.21. The 5-year average PS is 7.25. The thresholds are as follows: Strongly Undervalued below 5.65, Undervalued between 5.65 and 6.45, Fairly Valued between 8.05 and 6.45, Overvalued between 8.05 and 8.84, and Strongly Overvalued above 8.84. The current Forward PS of 7.21 falls within the Historic Trend Line -Fairly Valued range.
16.98
P/OCF
Check Point Software Technologies Ltd. (CHKP) has a current P/OCF of 16.98. The 5-year average P/OCF is 15.78. The thresholds are as follows: Strongly Undervalued below 10.80, Undervalued between 10.80 and 13.29, Fairly Valued between 18.26 and 13.29, Overvalued between 18.26 and 20.75, and Strongly Overvalued above 20.75. The current Forward P/OCF of 16.98 falls within the Historic Trend Line -Fairly Valued range.
17.63
P/FCF
Check Point Software Technologies Ltd. (CHKP) has a current P/FCF of 17.63. The 5-year average P/FCF is 16.16. The thresholds are as follows: Strongly Undervalued below 10.73, Undervalued between 10.73 and 13.45, Fairly Valued between 18.88 and 13.45, Overvalued between 18.88 and 21.60, and Strongly Overvalued above 21.60. The current Forward P/FCF of 17.63 falls within the Historic Trend Line -Fairly Valued range.
Check Point Software Technologies Ltd (CHKP) has a current Price-to-Book (P/B) ratio of 6.83. Compared to its 3-year average P/B ratio of 6.66 , the current P/B ratio is approximately 2.45% higher. Relative to its 5-year average P/B ratio of 5.99, the current P/B ratio is about 13.98% higher. Check Point Software Technologies Ltd (CHKP) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 5.67%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 6.30% , the current FCF yield is about -100.00% lower.
6.83
P/B
Median3y
6.66
Median5y
5.99
5.54
FCF Yield
Median3y
5.67
Median5y
6.30
Competitors Valuation Multiple
The average P/S ratio for CHKP's competitors is , providing a benchmark for relative valuation. Check Point Software Technologies Ltd Corp (CHKP) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 6.68%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of CHKP increased by 4.89% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 32.58 to 52.94.
The secondary factor is the Revenue Growth, contributed 6.68%to the performance.
Overall, the performance of CHKP in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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