Varonis Systems stock appears overvalued on most metrics, with a Discounted Cash Flow estimate indicating shares are roughly in line with intrinsic value. The DCF model points to an estimated intrinsic value of about $44 per share, approximately 5.6% above the current price, based on trailing free cash flow of $123.7 million and assumed growth. On a price-to-sales basis, Varonis trades at 7.3 times, above the software industry average of 3.5 times and a peer group average of 5.2 times, while the implied fair P/S ratio is about 5.3 times. The company scores 1 out of 6 for value on Simply Wall St's checks, and an Altman Z-Score in the distress zone highlights balance sheet risk. Interest from private equity buyers and AI-driven data security demand support growth expectations, but financial efficiency concerns may cap what investors are willing to pay.
Varonis SystemsDCF model shows shares near fair value, high P/S ratio vs peers, and Altman Z-Score in distress zone, indicating overvaluation and financial risk.