What Are the Fundamentals Of SPLK?

Splunk marked a -4.7% change today after wealth manager UBS downgraded its shares from buy to neutral. Although the company beat its most recent earnings estimates, management tempered its growth expectations for the upcoming quarter. Despite the reduced growth forecast, many of you might be wondering if SPLK is a good value at today's price of $79.41... Only an in-depth analysis can answer that question, but here are some facts that can get you started:

  • Splunk Inc., together with its subsidiaries, provides software and cloud solutions that deliver and operationalize insights from the data generated by digital systems in the United States and internationally.

  • Splunk belongs to the Technology sector, which has an average price to earnings (P/E) ratio of 26.5 and an average price to book (P/B) of 5.57

  • Splunk has a trailing 12 month Price to Earnings (P/E) ratio of -10.9 based on its trailing 12 month price to earnings (Eps) of $-7.29 per share

  • Its forward P/E ratio is 43.2 is, based on its 12 month price to earnings (Eps) is $-7.29

  • SPLK has a Price to Earnings Growth ratio of -1.55, which shows the company is very undervalued compared to its earnings growth estimates.

  • Over the last four years, Splunk has averaged free cash flows of $-56,513,250.00, which on average grew -16.5%

  • SPLK's gross profit margins have averaged 77.7 % over the last four years and during this time they had a growth rate of -3.5 % and a coefficient of variability of 5.7 %.

  • Splunk has moved -44.5% over the last year compared to -14.0% for the S&P 500 -- a difference of -30.5%

  • SPLK has an average analyst rating of buy and is -39.2% away from its mean target price of $130.61 per share

At Market Interference, our goal is to help educate investors about headline-making stocks. We believe informed investment decisions are good investment decisions. Subscribe to our free newsletter to stay on top of each day's market movements!

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

IN FOCUS