SNOW Relative Valuation
SNOW'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, SNOW is overvalued; if below, it's undervalued.
Historical Valuation
Snowflake Inc (SNOW) is now in the Fair zone, suggesting that its current forward PS ratio of 13.56 is considered Fairly compared with the five-year average of 465.80. The fair price of Snowflake Inc (SNOW) is between 133.29 to 636.26 according to relative valuation methord.
Relative Value
Fair Zone
133.29-636.26
Current Price:224.26
Fair
149.90
PE
1Y
3Y
5Y
94.82
EV/EBITDA
Snowflake Inc. (SNOW) has a current EV/EBITDA of 94.82. The 5-year average EV/EBITDA is -1.66. The thresholds are as follows: Strongly Undervalued below -1923.23, Undervalued between -1923.23 and -962.45, Fairly Valued between 959.12 and -962.45, Overvalued between 959.12 and 1919.91, and Strongly Overvalued above 1919.91. The current Forward EV/EBITDA of 94.82 falls within the Historic Trend Line -Fairly Valued range.
131.83
EV/EBIT
Snowflake Inc. (SNOW) has a current EV/EBIT of 131.83. The 5-year average EV/EBIT is -2114.99. The thresholds are as follows: Strongly Undervalued below -22087.02, Undervalued between -22087.02 and -12101.01, Fairly Valued between 7871.03 and -12101.01, Overvalued between 7871.03 and 17857.04, and Strongly Overvalued above 17857.04. The current Forward EV/EBIT of 131.83 falls within the Historic Trend Line -Fairly Valued range.
13.56
PS
Snowflake Inc. (SNOW) has a current PS of 13.56. The 5-year average PS is 26.43. The thresholds are as follows: Strongly Undervalued below -11.59, Undervalued between -11.59 and 7.42, Fairly Valued between 45.44 and 7.42, Overvalued between 45.44 and 64.45, and Strongly Overvalued above 64.45. The current Forward PS of 13.56 falls within the Historic Trend Line -Fairly Valued range.
49.37
P/OCF
Snowflake Inc. (SNOW) has a current P/OCF of 49.37. The 5-year average P/OCF is 279.56. The thresholds are as follows: Strongly Undervalued below -993.40, Undervalued between -993.40 and -356.92, Fairly Valued between 916.04 and -356.92, Overvalued between 916.04 and 1552.52, and Strongly Overvalued above 1552.52. The current Forward P/OCF of 49.37 falls within the Historic Trend Line -Fairly Valued range.
52.56
P/FCF
Snowflake Inc. (SNOW) has a current P/FCF of 52.56. The 5-year average P/FCF is -512.37. The thresholds are as follows: Strongly Undervalued below -6289.55, Undervalued between -6289.55 and -3400.96, Fairly Valued between 2376.23 and -3400.96, Overvalued between 2376.23 and 5264.82, and Strongly Overvalued above 5264.82. The current Forward P/FCF of 52.56 falls within the Historic Trend Line -Fairly Valued range.
Snowflake Inc (SNOW) has a current Price-to-Book (P/B) ratio of 34.75. Compared to its 3-year average P/B ratio of 16.43 , the current P/B ratio is approximately 111.49% higher. Relative to its 5-year average P/B ratio of 15.41, the current P/B ratio is about 125.46% higher. Snowflake Inc (SNOW) has a Forward Free Cash Flow (FCF) yield of approximately 1.05%. Compared to its 3-year average FCF yield of 1.37%, the current FCF yield is approximately -23.78% lower. Relative to its 5-year average FCF yield of 0.90% , the current FCF yield is about 15.73% lower.
34.75
P/B
Median3y
16.43
Median5y
15.41
1.05
FCF Yield
Median3y
1.37
Median5y
0.90
Competitors Valuation Multiple
The average P/S ratio for SNOW's competitors is 9.22, providing a benchmark for relative valuation. Snowflake Inc Corp (SNOW) exhibits a P/S ratio of 13.56, which is 47.01% above the industry average. Given its robust revenue growth of 28.75%, this premium appears sustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of SNOW increased by 28.64% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -41.09 to -53.76.
The secondary factor is the Revenue Growth, contributed 28.75%to the performance.
Overall, the performance of SNOW in the past 1 year is driven by P/E Change. Which is more unsustainable.
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Frequently Asked Questions
Is Snowflake Inc (SNOW) currently overvalued or undervalued?
Snowflake Inc (SNOW) is now in the Fair zone, suggesting that its current forward PS ratio of 13.56 is considered Fairly compared with the five-year average of 465.80. The fair price of Snowflake Inc (SNOW) is between 133.29 to 636.26 according to relative valuation methord.
What is Snowflake Inc (SNOW) fair value?
SNOW'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 Snowflake Inc (SNOW) is between 133.29 to 636.26 according to relative valuation methord.
How does SNOW's valuation metrics compare to the industry average?
The average P/S ratio for SNOW's competitors is 9.22, providing a benchmark for relative valuation. Snowflake Inc Corp (SNOW) exhibits a P/S ratio of 13.56, which is 47.01% above the industry average. Given its robust revenue growth of 28.75%, this premium appears sustainable.
What is the current P/B ratio for Snowflake Inc (SNOW) as of Jan 08 2026?
As of Jan 08 2026, Snowflake Inc (SNOW) has a P/B ratio of 34.75. This indicates that the market values SNOW at 34.75 times its book value.
What is the current FCF Yield for Snowflake Inc (SNOW) as of Jan 08 2026?
As of Jan 08 2026, Snowflake Inc (SNOW) has a FCF Yield of 1.05%. This means that for every dollar of Snowflake Inc’s market capitalization, the company generates 1.05 cents in free cash flow.
What is the current Forward P/E ratio for Snowflake Inc (SNOW) as of Jan 08 2026?
As of Jan 08 2026, Snowflake Inc (SNOW) has a Forward P/E ratio of 149.90. This means the market is willing to pay $149.90 for every dollar of Snowflake Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Snowflake Inc (SNOW) as of Jan 08 2026?
As of Jan 08 2026, Snowflake Inc (SNOW) has a Forward P/S ratio of 13.56. This means the market is valuing SNOW at $13.56 for every dollar of expected revenue over the next 12 months.