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NET Valuation

Cloudflare Inc
$
200.910
+5.53(2.830%)1D
  • Overview
  • Forecast
  • Valuation
  • Earnings

NET Relative Valuation

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

Historical Valuation

Cloudflare Inc (NET) is now in the Fair zone, suggesting that its current forward PS ratio of 29.47 is considered Fairly compared with the five-year average of -1296.00. The fair price of Cloudflare Inc (NET) is between 74.70 to 232.53 according to relative valuation methord.
Relative Value
Fair Zone
74.70-232.53
Current Price:200.91
Fair
200.83
PE
1Y
3Y
5Y
Trailing
Forward
130.15
EV/EBITDA
Cloudflare Inc. (NET) has a current EV/EBITDA of 130.15. The 5-year average EV/EBITDA is 256.62. The thresholds are as follows: Strongly Undervalued below -287.90, Undervalued between -287.90 and -15.64, Fairly Valued between 528.88 and -15.64, Overvalued between 528.88 and 801.14, and Strongly Overvalued above 801.14. The current Forward EV/EBITDA of 130.15 falls within the Historic Trend Line -Fairly Valued range.
208.29
EV/EBIT
Cloudflare Inc. (NET) has a current EV/EBIT of 208.29. The 5-year average EV/EBIT is -60448.95. The thresholds are as follows: Strongly Undervalued below -588813.35, Undervalued between -588813.35 and -324631.15, Fairly Valued between 203733.25 and -324631.15, Overvalued between 203733.25 and 467915.46, and Strongly Overvalued above 467915.46. The current Forward EV/EBIT of 208.29 falls within the Historic Trend Line -Fairly Valued range.
29.47
PS
Cloudflare Inc. (NET) has a current PS of 29.47. The 5-year average PS is 25.63. The thresholds are as follows: Strongly Undervalued below -3.31, Undervalued between -3.31 and 11.16, Fairly Valued between 40.11 and 11.16, Overvalued between 40.11 and 54.58, and Strongly Overvalued above 54.58. The current Forward PS of 29.47 falls within the Historic Trend Line -Fairly Valued range.
107.83
P/OCF
Cloudflare Inc. (NET) has a current P/OCF of 107.83. The 5-year average P/OCF is 343.04. The thresholds are as follows: Strongly Undervalued below -924.79, Undervalued between -924.79 and -290.88, Fairly Valued between 976.95 and -290.88, Overvalued between 976.95 and 1610.86, and Strongly Overvalued above 1610.86. The current Forward P/OCF of 107.83 falls within the Historic Trend Line -Fairly Valued range.
219.87
P/FCF
Cloudflare Inc. (NET) has a current P/FCF of 219.87. The 5-year average P/FCF is 41510.01. The thresholds are as follows: Strongly Undervalued below -348732.51, Undervalued between -348732.51 and -153611.25, Fairly Valued between 236631.28 and -153611.25, Overvalued between 236631.28 and 431752.54, and Strongly Overvalued above 431752.54. The current Forward P/FCF of 219.87 falls within the Historic Trend Line -Fairly Valued range.
Cloudflare Inc (NET) has a current Price-to-Book (P/B) ratio of 56.46. Compared to its 3-year average P/B ratio of 34.92 , the current P/B ratio is approximately 61.71% higher. Relative to its 5-year average P/B ratio of 36.26, the current P/B ratio is about 55.72% higher. Cloudflare Inc (NET) has a Forward Free Cash Flow (FCF) yield of approximately 0.30%. Compared to its 3-year average FCF yield of 0.33%, the current FCF yield is approximately -10.24% lower. Relative to its 5-year average FCF yield of 0.08% , the current FCF yield is about 254.21% lower.
56.46
P/B
Median3y
34.92
Median5y
36.26
0.30
FCF Yield
Median3y
0.33
Median5y
0.08

Competitors Valuation Multiple

The average P/S ratio for NET's competitors is 8.80, providing a benchmark for relative valuation. Cloudflare Inc Corp (NET) exhibits a P/S ratio of 29.47, which is 234.98% above the industry average. Given its robust revenue growth of 27.76%, this premium appears sustainable.

Performance Decomposition

1Y
3Y
5Y
Market capitalization of NET increased by 144.59% over the past 1 year. The primary factor behind the change was an decrease in Margin Expansion from -3.76 to -9.85.
The secondary factor is the Revenue Growth, contributed 27.76%to the performance.
Overall, the performance of NET in the past 1 year is driven by Margin Expansion. Which is more sustainable.
27.76%
401.00M → 512.32M
Revenue Growth
+
161.97%
-3.76 → -9.85
Margin Expansion
+
-45.14%
-1.08K → -591.87
P/E Change
=
144.59%
82.14 → 200.91
Mkt Cap Growth

FAQ

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Is Cloudflare Inc (NET) currently overvalued or undervalued?

Cloudflare Inc (NET) is now in the Fair zone, suggesting that its current forward PS ratio of 29.47 is considered Fairly compared with the five-year average of -1296.00. The fair price of Cloudflare Inc (NET) is between 74.70 to 232.53 according to relative valuation methord.
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What is Cloudflare Inc (NET) fair value?

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How does NET's valuation metrics compare to the industry average?

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What is the current P/B ratio for Cloudflare Inc (NET) as of Aug 17 2025?

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What is the current FCF Yield for Cloudflare Inc (NET) as of Aug 17 2025?

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What is the current Forward P/E ratio for Cloudflare Inc (NET) as of Aug 17 2025?

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What is the current Forward P/S ratio for Cloudflare Inc (NET) as of Aug 17 2025?