PSTG Relative Valuation
PSTG'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, PSTG is overvalued; if below, it's undervalued.
Historical Valuation
Pure Storage Inc (PSTG) is now in the Fair zone, suggesting that its current forward PE ratio of 28.42 is considered Fairly compared with the five-year average of 44.89. The fair price of Pure Storage Inc (PSTG) is between 11.77 to 140.85 according to relative valuation methord.
Relative Value
Fair Zone
11.77-140.85
Current Price：54.51
Fair
28.42
PE
1Y
3Y
5Y
Trailing
Forward
21.17
EV/EBITDA
Pure Storage Inc. (PSTG) has a current EV/EBITDA of 21.17. The 5-year average EV/EBITDA is 22.44. The thresholds are as follows: Strongly Undervalued below 6.13, Undervalued between 6.13 and 14.29, Fairly Valued between 30.60 and 14.29, Overvalued between 30.60 and 38.75, and Strongly Overvalued above 38.75. The current Forward EV/EBITDA of 21.17 falls within the Historic Trend Line -Fairly Valued range.
25.76
EV/EBIT
Pure Storage Inc. (PSTG) has a current EV/EBIT of 25.76. The 5-year average EV/EBIT is 41.20. The thresholds are as follows: Strongly Undervalued below -55.66, Undervalued between -55.66 and -7.23, Fairly Valued between 89.63 and -7.23, Overvalued between 89.63 and 138.06, and Strongly Overvalued above 138.06. The current Forward EV/EBIT of 25.76 falls within the Historic Trend Line -Fairly Valued range.
4.92
PS
Pure Storage Inc. (PSTG) has a current PS of 4.92. The 5-year average PS is 3.77. The thresholds are as follows: Strongly Undervalued below 1.40, Undervalued between 1.40 and 2.59, Fairly Valued between 4.95 and 2.59, Overvalued between 4.95 and 6.13, and Strongly Overvalued above 6.13. The current Forward PS of 4.92 falls within the Historic Trend Line -Fairly Valued range.
18.94
P/OCF
Pure Storage Inc. (PSTG) has a current P/OCF of 18.94. The 5-year average P/OCF is 22.17. The thresholds are as follows: Strongly Undervalued below -0.23, Undervalued between -0.23 and 10.97, Fairly Valued between 33.36 and 10.97, Overvalued between 33.36 and 44.56, and Strongly Overvalued above 44.56. The current Forward P/OCF of 18.94 falls within the Historic Trend Line -Fairly Valued range.
28.20
P/FCF
Pure Storage Inc. (PSTG) has a current P/FCF of 28.20. The 5-year average P/FCF is 15.68. The thresholds are as follows: Strongly Undervalued below -121.22, Undervalued between -121.22 and -52.77, Fairly Valued between 84.14 and -52.77, Overvalued between 84.14 and 152.59, and Strongly Overvalued above 152.59. The current Forward P/FCF of 28.20 falls within the Historic Trend Line -Fairly Valued range.
Pure Storage Inc (PSTG) has a current Price-to-Book (P/B) ratio of 14.33. Compared to its 3-year average P/B ratio of 11.89 , the current P/B ratio is approximately 20.44% higher. Relative to its 5-year average P/B ratio of 10.83, the current P/B ratio is about 32.31% higher. Pure Storage Inc (PSTG) has a Forward Free Cash Flow (FCF) yield of approximately 3.18%. Compared to its 3-year average FCF yield of 4.44%, the current FCF yield is approximately -28.52% lower. Relative to its 5-year average FCF yield of 3.79% , the current FCF yield is about -16.27% lower.
14.33
P/B
Median3y
11.89
Median5y
10.83
3.18
FCF Yield
Median3y
4.44
Median5y
3.79
Competitors Valuation Multiple
The average P/S ratio for PSTG's competitors is 2.86, providing a benchmark for relative valuation. Pure Storage Inc Corp (PSTG) exhibits a P/S ratio of 4.92, which is 71.81% above the industry average. Given its robust revenue growth of 12.26%, 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 PSTG increased by 9.67% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 91.01 to 147.22.
The secondary factor is the Revenue Growth, contributed 12.26%to the performance.
Overall, the performance of PSTG in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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