Rubrik

Rubrik Inc receives a 3-star quantitative star rating, reflecting our opinion that this share class is a balanced choice, but prudent investors should consider looking elsewhere. The stock currently trades at a minor 1% discount to our quantitative fair value estimate of $116.08 per share; however, caution is warranted due to this estimate's high uncertainty rating.

The firm's solid growth bolsters our quantitative valuation. Consistent revenue and earnings growth indicates a company's potential for increased market share and profitability. Reflecting the firm's growth is its revenue 3-year growth of 41.5%, which falls in the top 10% compared with peers globally. Robust trailing three-year revenue growth portends a favorable future trajectory, which contributes to our view that shares are undervalued.

Conversely, the company's valuation metrics are potentially concerning. A company's valuation metrics provide insights into the market's expectations for its future growth and profitability. The firm's enterprise value to EBITDA ratio of 217.4, a core component of valuation, sits in the top 10% compared with global peers. This suggests that the value of its enterprise value, or the value of its shares and debt, is a high multiple of the generated EBITDA. Despite our favorable price/fair value ratio, this characteristic is a negative attribute.

With its quantitative economic moat rating of none, we do not expect this company to materially outearn its cost of capital in the long run. Additionally, the firm's moderate financial health score suggests it is acceptably positioned against adverse economic circumstances.