NET PE Ratio & Valuation,Is NET Overvalued

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 26.76 is considered Fairly compared with the five-year average of -1244.25. The fair price of Cloudflare Inc (NET) is between 85.30 to 256.97 according to relative valuation methord.

Relative Value

Fair Zone

85.30-256.97

Current Price：202.81

Fair

175.22

115.79

EV/EBITDA

Cloudflare Inc. (NET) has a current EV/EBITDA of 115.79. The 5-year average EV/EBITDA is 198.76. The thresholds are as follows: Strongly Undervalued below -166.16, Undervalued between -166.16 and 16.30, Fairly Valued between 381.22 and 16.30, Overvalued between 381.22 and 563.68, and Strongly Overvalued above 563.68. The current Forward EV/EBITDA of 115.79 falls within the Historic Trend Line -Fairly Valued range.

182.71

EV/EBIT

Cloudflare Inc. (NET) has a current EV/EBIT of 182.71. The 5-year average EV/EBIT is -60535.43. The thresholds are as follows: Strongly Undervalued below -589529.62, Undervalued between -589529.62 and -325032.53, Fairly Valued between 203961.66 and -325032.53, Overvalued between 203961.66 and 468458.76, and Strongly Overvalued above 468458.76. The current Forward EV/EBIT of 182.71 falls within the Historic Trend Line -Fairly Valued range.

26.76

Cloudflare Inc. (NET) has a current PS of 26.76. The 5-year average PS is 25.30. The thresholds are as follows: Strongly Undervalued below -3.02, Undervalued between -3.02 and 11.14, Fairly Valued between 39.46 and 11.14, Overvalued between 39.46 and 53.62, and Strongly Overvalued above 53.62. The current Forward PS of 26.76 falls within the Historic Trend Line -Fairly Valued range.

95.80

P/OCF

Cloudflare Inc. (NET) has a current P/OCF of 95.80. The 5-year average P/OCF is 209.84. The thresholds are as follows: Strongly Undervalued below -242.48, Undervalued between -242.48 and -16.32, Fairly Valued between 436.01 and -16.32, Overvalued between 436.01 and 662.17, and Strongly Overvalued above 662.17. The current Forward P/OCF of 95.80 falls within the Historic Trend Line -Fairly Valued range.

199.20

P/FCF

Cloudflare Inc. (NET) has a current P/FCF of 199.20. The 5-year average P/FCF is 41652.82. The thresholds are as follows: Strongly Undervalued below -349020.02, Undervalued between -349020.02 and -153683.60, Fairly Valued between 236989.24 and -153683.60, Overvalued between 236989.24 and 432325.66, and Strongly Overvalued above 432325.66. The current Forward P/FCF of 199.20 falls within the Historic Trend Line -Fairly Valued range.

Cloudflare Inc (NET) has a current Price-to-Book (P/B) ratio of 50.96. Compared to its 3-year average P/B ratio of 38.50 , the current P/B ratio is approximately 32.36% higher. Relative to its 5-year average P/B ratio of 39.07, the current P/B ratio is about 30.42% higher. Cloudflare Inc (NET) has a Forward Free Cash Flow (FCF) yield of approximately 0.34%. Compared to its 3-year average FCF yield of 0.41%, the current FCF yield is approximately -16.90% lower. Relative to its 5-year average FCF yield of 0.15% , the current FCF yield is about 130.52% lower.

50.96

P/B

Median3y

38.50

Median5y

39.07

0.34

FCF Yield

Median3y

0.41

Median5y

0.15

Competitors Valuation Multiple

The average P/S ratio for NET's competitors is 10.15, providing a benchmark for relative valuation. Cloudflare Inc Corp (NET) exhibits a P/S ratio of 26.76, which is 163.59% above the industry average. Given its robust revenue growth of 30.68%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of NET increased by 46.54% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -314.93 to -659.46.

The secondary factor is the Revenue Growth, contributed 30.68%to the performance.

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

30.68%

430.08M → 562.03M

Revenue Growth

-93.54%

-3.56 → -0.23

Margin Expansion

109.40%

-314.93 → -659.46

P/E Change

46.54%

138.40 → 202.81

Mkt Cap Growth

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Frequently Asked Questions

Is Cloudflare Inc (NET) currently overvalued or undervalued?

What is Cloudflare Inc (NET) fair value?

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. The fair price of Cloudflare Inc (NET) is between 85.30 to 256.97 according to relative valuation methord.

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

What is the current P/B ratio for Cloudflare Inc (NET) as of Jan 08 2026?

As of Jan 08 2026, Cloudflare Inc (NET) has a P/B ratio of 50.96. This indicates that the market values NET at 50.96 times its book value.

What is the current FCF Yield for Cloudflare Inc (NET) as of Jan 08 2026?

As of Jan 08 2026, Cloudflare Inc (NET) has a FCF Yield of 0.34%. This means that for every dollar of Cloudflare Inc’s market capitalization, the company generates 0.34 cents in free cash flow.

What is the current Forward P/E ratio for Cloudflare Inc (NET) as of Jan 08 2026?

As of Jan 08 2026, Cloudflare Inc (NET) has a Forward P/E ratio of 175.22. This means the market is willing to pay $175.22 for every dollar of Cloudflare Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Cloudflare Inc (NET) as of Jan 08 2026?

As of Jan 08 2026, Cloudflare Inc (NET) has a Forward P/S ratio of 26.76. This means the market is valuing NET at $26.76 for every dollar of expected revenue over the next 12 months.

NET Valuation