Splunk Stock Analysis, Valuation (NASDAQ:SPLK)

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$103.41 $0.66 (0.63%) SPLK stock closing price Aug 17, 2018 (Closing)

View the Splunk stock analysis video on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for SPLK stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Splunk Inc Stock Rating 2.1/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for SPLK stock analysis. Splunk valuation forms a crucial part of our stock analysis. Our Splunk stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy SPLK stock?

  • The Year Over Year (YoY) revenue growth for Splunk was 28.5% in 2018-04.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 43.7.
  • The company has a healthy free cash flow margin of 23.8.

Should you sell SPLK stock?

  • Splunk registered a negative operating margin of -20.77 (average) over the Trailing Twelve Months (TTM).
  • Over the last 12 months, Splunk had an average Net loss of -20.7%.
  • PE ratio is meaningless for SPLK stock as the company has losses.
  • The company is trading at a price to sales multiple of 11.1, which is higher in comparison to the Computer and Technology sector average of 2.9, making SPLK stock expensive.
  • A negative ROE of -32.8 indicates that the company is not able to generate profits with the money shareholders have invested.

Comments on this video and Splunk stock

Amigobulls Splunk stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Among the financials of the company, Splunk revenue growth along with the profit or net income give a clear picture of the financial health. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Splunk stock.