PSTG Valuation

Pure Storage Inc

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77.610

-2.93(-3.638%)1D

Overview
Forecast
Valuation
Earnings

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 36.90 is considered Fairly compared with the five-year average of 42.36. The fair price of Pure Storage Inc (PSTG) is between 18.18 to 148.23 according to relative valuation methord.

Relative Value

Fair Zone

18.18-148.23

Current Price：80.54

Fair

35.20

Trailing

Forward

28.71

EV/EBITDA

Pure Storage Inc. (PSTG) has a current EV/EBITDA of 28.71. The 5-year average EV/EBITDA is 22.14. The thresholds are as follows: Strongly Undervalued below 6.51, Undervalued between 6.51 and 14.32, Fairly Valued between 29.96 and 14.32, Overvalued between 29.96 and 37.78, and Strongly Overvalued above 37.78. The current Forward EV/EBITDA of 28.71 falls within the Historic Trend Line -Fairly Valued range.

35.16

EV/EBIT

Pure Storage Inc. (PSTG) has a current EV/EBIT of 35.16. The 5-year average EV/EBIT is 38.18. The thresholds are as follows: Strongly Undervalued below -46.67, Undervalued between -46.67 and -4.25, Fairly Valued between 80.61 and -4.25, Overvalued between 80.61 and 123.03, and Strongly Overvalued above 123.03. The current Forward EV/EBIT of 35.16 falls within the Historic Trend Line -Fairly Valued range.

6.81

Pure Storage Inc. (PSTG) has a current PS of 6.81. The 5-year average PS is 3.81. The thresholds are as follows: Strongly Undervalued below 1.44, Undervalued between 1.44 and 2.62, Fairly Valued between 4.99 and 2.62, Overvalued between 4.99 and 6.18, and Strongly Overvalued above 6.18. The current Forward PS of 6.81 falls within the Strongly Overvalued range.

26.20

P/OCF

Pure Storage Inc. (PSTG) has a current P/OCF of 26.20. The 5-year average P/OCF is 21.73. The thresholds are as follows: Strongly Undervalued below 0.37, Undervalued between 0.37 and 11.05, Fairly Valued between 32.41 and 11.05, Overvalued between 32.41 and 43.09, and Strongly Overvalued above 43.09. The current Forward P/OCF of 26.20 falls within the Historic Trend Line -Fairly Valued range.

38.98

P/FCF

Pure Storage Inc. (PSTG) has a current P/FCF of 38.98. The 5-year average P/FCF is 14.72. The thresholds are as follows: Strongly Undervalued below -120.68, Undervalued between -120.68 and -52.98, Fairly Valued between 82.42 and -52.98, Overvalued between 82.42 and 150.13, and Strongly Overvalued above 150.13. The current Forward P/FCF of 38.98 falls within the Historic Trend Line -Fairly Valued range.

Pure Storage Inc (PSTG) has a current Price-to-Book (P/B) ratio of 20.01. Compared to its 3-year average P/B ratio of 11.97 , the current P/B ratio is approximately 67.20% higher. Relative to its 5-year average P/B ratio of 10.96, the current P/B ratio is about 82.54% higher. Pure Storage Inc (PSTG) has a Forward Free Cash Flow (FCF) yield of approximately 2.11%. Compared to its 3-year average FCF yield of 4.37%, the current FCF yield is approximately -51.71% lower. Relative to its 5-year average FCF yield of 3.79% , the current FCF yield is about -44.35% lower.

19.08

P/B

Median3y

11.97

Median5y

10.96

2.11

FCF Yield

Median3y

4.37

Median5y

3.79

Competitors Valuation Multiple

The average P/S ratio for PSTG's competitors is 3.39, providing a benchmark for relative valuation. Pure Storage Inc Corp (PSTG) exhibits a P/S ratio of 6.81, which is 100.58% above the industry average. Given its robust revenue growth of 12.73%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Logitech International SA

Seagate Technology Holdings PLC

3.51

29.52%

35.60B

Performance Decomposition

Market capitalization of PSTG increased by 57.03% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 147.72 to 187.85.

The secondary factor is the Margin Expansion, contributed 17.13%to the performance.

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

12.73%

763.77M → 861.00M

Revenue Growth

17.13%

4.67 → 5.47

Margin Expansion

27.17%

147.72 → 187.85

P/E Change

57.03%