Rapid7 (RPD:NAS) Fundamental Valuation Report

Rapid7 (RPD:NAS) Fundamental Valuation Report

Fundamental Valuation Report


Technology:Software – Application

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$78.16 (USD) 04/06/2021

Weighted Valuation
$72.35 (USD)

Overall Rating
Overvalued by 7.4%

Valuation Models Comparables: $72.35 (USD)
Valuation Methods This company is:
Cash Flow: Overvalued on a Cash Flow Valuation
Comparable Company: Overvalued on a Comparable Valuation
Asset: Overvalued on an Asset Valuation
According to Analyst consensus at $110.00 this stock is Undervalued

Company Overview (RPD:NAS USD)

Price 78.16
Range 77.08 – 79.82
52 week 39.78 – 92.55
Open 77.18
Vol / Avg. 374402/790214
Mkt cap 4.12B
P/E 0.00
Div/yield 0.00/0.00
EPS -1.94
Shares 52.69M
Beta 1.31

Company Description

Rapid7 Inc is a provider of security data and analytics solutions that enable organizations to implement an active approach to cyber security. The company combines security data and analytics platform that provides solutions to cyber security that enables organizations to find and eliminate critical weaknesses and detect attacks in their information technology (IT) environments. Its products include Nexpose, Metasploit, Appspider and UserInsight. The firm serves various industries including technology, energy, financial services, healthcare and life sciences, manufacturing, media, and entertainment. Geographically, it operates in the region of North America and derives revenue from maintenance and support service and by offering of other professional services.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for RPD:NAS

Using a discounted cash flow model we generated an intrinsic value of $8.16 (USD) for RPD:NAS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

RPD:NAS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $8.16 1% 5% 1% 5%
WACC (or Ke) 10.13 $9.50 $7.14
Terminal Growth Rate 3.00 $7.29 $9.30
Tax Rate 0.27 $8.57 $7.75
Cash Flow 42,195,164 $7.78 $8.53
Capital Expenditures -13,073,200 $8.05 $8.26
Long Term Debt 0 $8.16 $8.16

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $46.37 (USD) for RPD:NAS. We also generated a valuation of $72.35 (USD) using other metrics and comparables.
The comparable companies were Pluralsight (PS:NAS), Everbridge (EVBG:NAS), AppFolio (APPF:NAS), Alarm.com Holdings (ALRM:NAS) and Cornerstone OnDemand (CSOD:NAS).

Company RPD:NAS End Date Value
Earnings/Share ($1.94) (USD)
Book Value/Share $1.36 (USD)
Sales/Share $8.06 (USD)
Cash Flow/Share $0.10 (USD)
EBITDA/Share ($0.98) (USD)
Price Based on Comps Adjustment Factor (%)
$0.00 (USD) 0.0
$20.75 (USD) 0.0
$80.99 (USD) 28.8
$4.97 (USD) 0.0
$0.00 (USD) 0.0
0.00 PE Ratio 44.75 0.00 0.00 32.16 57.33 0.00
57.57 PB Ratio 15.28 19.93 18.98 17.21 9.30 10.99
9.69 PS Ratio 10.04 6.40 16.24 16.45 7.23 3.90
816.26 PCF Ratio 146.79 276.11 278.68 105.58 43.79 29.78
0.00 EV to EBITDA 66.94 0.00 0.00 118.97 38.27 43.59


Using a multiples approach we generated a valuation of  $35.76 (USD) for RPD:NAS

Company RPD:NAS End Date Value
Earnings/Share ($1.94) (USD)
Book Value/Share $1.36 (USD)
Sales/Share $8.06 (USD)
Cash Flow/Share $0.10 (USD)
EBITDA/Share ($0.98) (USD)
Price Based on Comps Adjustment Factor
$0.00 (USD) 0
$35.25 (USD) 0
$51.62 (USD) 0
$20.40 (USD) 0
$0.00 (USD) 0
Ratios Ratio Average
PE Ratio 0.00
PB Ratio 25.96
PS Ratio 6.40
PCF Ratio 212.97
EV to EBITDA 0.00

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  RPD:NAS for the last 6 years was  25.14

We ran the Adjusted Book Value for  RPD:NAS and generated a book value of  $1.37 (USD)
By multiplying these we get an adjusted valuation of  $34.44 (USD)

Analyst Data

In the Stockcalc database there are 1 analysts that provide a valuation for RPD:NAS. The 1 analysts have a concensus valuation for RPD:NAS for 2021 of $110.00 (USD).

RPD:NAS Rapid7

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
1 0 0 5.0000 Buy 2021-4-5

Current Price: 78.16 USD

Analyst Consensus
USD Millions 2021 2022
Mean EPS 0.01 0.25
# EPS Analysts 1 1
Mean Revenue 494.00 586.00
# Revenue Analysts 1 1
Mean Target Price 110.00
Mean Cash Flow 0.51 0.84
Mean Net Income 0.70 14.60
Mean Debt Outstanding
Mean Tax Rate 64.00 16.00
Mean Growth Rate
Mean Capital Expenditure 20.00 20.00

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

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