Rankings Software, cloud & internet Cloudflare
Cloudflare
49
15070100
A view of the same findings, not a new score. How it works
The model found several serious problems. That does not mean the stock will fall.
Biggest deductions
- Multiples vs own history and peers−35
- Margin (GAAP loss and falling gross margin)−6
- Stock-based compensation versus FCF−5
Strengths
- Raised guidance and acceleration+3
- Net retention and large customers+3
- Net cash+1
How the score is built
From 100 to 49, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 2 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 265.17 USD
- Median analyst target
- 370.00 USD
- Upside to median
- +39.5%
- Analysts
- 34
- Target range
- 160.00 – 430.00 USD
- 52-week change
- +5%
- P/E (trailing)
- n/a
- Forward P/E
- 179.4
- PEG
- 3.61
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 2 findings−11 of −30
- −6Margin (GAAP loss and falling gross margin)GAAP operating margin is -7.8% TTM (-29.6% in Q2 incl. restructuring), and the company has never made a GAAP profit. Gross margin has fallen from 77.3% (2024) to 72.6% TTM because network and GPU capex take up more (capex 292m $, 12% of revenue).
- −5Stock-based compensation versus FCFStock-based compensation was 508m $ TTM (20% of revenue), more than FCF of 342m $. FCF after stock compensation is approx. -166m $, and the share count is rising approx. 2% a year with no real buybacks.
Price
Today's multiples against the company's own history and its peers. · 1 finding−35 of −35
- −35Multiples vs own history and peersP/S 51 versus 15-32 in 2022-25, forward P/E 244 versus 138-286, P/FCF 376 versus 205-246 and EV/Sales 51. The FCF yield is 0.27%. The multiples are the highest since the 2021 bubble and many times higher than software peers, and price targets are 5% below the share price.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 3 findings−7 of −35
- −3Insider sellingCEO Matthew Prince sold approx. 20m $ in August 2026 (two blocks of approx. 33,000 shares each) and has sold continuously all year (blocks of 52,384 shares in January-February). This happens via a 10b5-1 plan, and there are no insider purchases.
- −2Governance (dual share class)The founders hold control through B shares with more votes (322.6m A shares out of a total of 356.1m). Insiders own 9.7% of the capital but have a far larger share of the votes.
- −2Pricing model and predictabilityThe company is moving to consumption-based and pool-of-funds pricing. The CFO warns that revenue will be less predictable quarter by quarter, alongside a restructuring of USD 150.7m towards an 'agentic AI-first' set-up.
Plus
Only documented strengths. · 3 findings+7 of +15
- +3Raised guidance and accelerationQ2 revenue rose 36% to $696m (accelerating). Full-year guidance has been raised from $2.805-2.813bn to $2.864-2.870bn, and current RPO rose 35%.
- +3Net retention and large customersDollar-based net retention has risen to 120% from 114% a year earlier. 4,698 customers pay over $100,000 a year (+27%) and account for 73% of revenue.
- +1Net cashNet cash of $633m (cash $4.16bn against debt $3.53bn, primarily convertible notes); current ratio 1.8.
Caveats
What the score does not capture, or where the data is weak.
P/S 51 and forward P/E 244 after a 64% rise in a year; price targets are below the share price. GAAP loss in all years; Q2 is burdened by restructuring of USD 150.7m (a roughly 20% smaller workforce in an 'AI-first' plan), which has not been added back. AI revenue (Workers AI and agent traffic) is not disclosed. Q3 comes 29/10.
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