(NET) Cloudflare - Ratings and Ratios
CDN, Firewall, DNS, VPN, Workers
EPS (Earnings per Share)
Revenue
| Risk via 10d forecast | |
|---|---|
| Volatility | 51.1% |
| Value at Risk 5%th | 75.9% |
| Relative Tail Risk | -9.60% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 1.43 |
| Alpha | 74.59 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.608 |
| Beta | 1.660 |
| Beta Downside | 1.781 |
| Drawdowns 3y | |
|---|---|
| Max DD | 45.00% |
| Mean DD | 13.94% |
| Median DD | 11.74% |
Description: NET Cloudflare September 26, 2025
Cloudflare, Inc. (NYSE: NET) is a global cloud-services platform that bundles security, performance, and networking functions into a single, SaaS-delivered suite. Its product portfolio spans edge-based web-application firewall, bot management, DDoS mitigation, API protection, SSL/TLS encryption, and rate-limiting; performance tools such as CDN, load balancing, DNS, smart routing, video streaming, and cache-reserve; a SASE (Secure Access Service Edge) offering that combines network-as-a-service (Magic WAN, Magic Transit, Magic Firewall, Spectrum) with Zero-Trust controls (Access, Gateway, Remote Browser Isolation, CASB, email security, DLP); and a developer-centric stack (Workers AI, Vectorize, AI Gateway, Workers, Pages, R2 object storage, KV, Durable Objects, D1, Hyperdrive, Stream, Images, Calls). Consumer-facing services include the 1.1.1.1 DNS resolver, WARP VPN, and a domain-registration registrar.
The company serves a diversified client base across technology, healthcare, financial services, consumer & retail, industrial, non-profit, and government sectors. By positioning its edge network as a universal platform, Cloudflare aims to lock in recurring revenue from both large enterprises and SMBs that need to secure and accelerate traffic from public cloud, private cloud, on-premises, SaaS, and IoT environments.
Key recent metrics (Q3 2024) show revenue of approximately $720 million, a year-over-year growth rate of ~30%, and annualized recurring revenue (ARR) near $4.5 billion, with gross margins around 78% and a narrowing net loss as operating efficiencies improve. The broader market is being driven by accelerating cyber-security spend (global forecasts expect CAGR > 10% through 2028), rapid adoption of edge computing and Zero-Trust architectures, and a shift toward subscription-based network services-all of which align with Cloudflare’s strategic positioning.
For a deeper quantitative assessment of Cloudflare’s valuation metrics, the ValueRay platform offers a concise data-sheet worth reviewing.
NET Stock Overview
| Market Cap in USD | 74,799m |
| Sub-Industry | Application Software |
| IPO / Inception | 2019-09-13 |
| Return 12m vs S&P 500 | 59.1% |
| Analyst Rating | 3.91 of 5 |
NET Dividends
Currently no dividends paidNET Growth Ratios
| Metric | Value |
|---|---|
| CAGR 3y | 60.64% |
| CAGR/Max DD Calmar Ratio | 1.35 |
| CAGR/Mean DD Pain Ratio | 4.35 |
| Current Volume | 3321.9k |
| Average Volume | 2865.8k |
Piotroski VR‑10 (Strict, 0-10) 2.5
| Net Income (-103.0m TTM) > 0 and > 6% of Revenue (6% = 120.8m TTM) |
| FCFTA 0.04 (>2.0%) and ΔFCFTA -1.81pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 114.9% (prev 96.83%; Δ 18.08pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.09 (>3.0%) and CFO 540.0m > Net Income -103.0m (YES >=105%, WARN >=100%) |
| Net Debt (2.45b) to EBITDA (138.8m) ratio: 17.65 <= 3.0 (WARN <= 3.5) |
| Current Ratio 2.04 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (342.4m) change vs 12m ago 0.0% (target <= -2.0% for YES) |
| Gross Margin 75.19% (prev 77.49%; Δ -2.31pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 45.50% (prev 51.33%; Δ -5.83pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio -11.70 (EBITDA TTM 138.8m / Interest Expense TTM 7.32m) >= 6 (WARN >= 3) |
Altman Z'' 1.54
| (A) 0.40 = (Total Current Assets 4.54b - Total Current Liabilities 2.22b) / Total Assets 5.79b |
| (B) -0.21 = Retained Earnings (Balance) -1.19b / Total Assets 5.79b |
| (C) -0.02 = EBIT TTM -85.7m / Avg Total Assets 4.42b |
| (D) -0.27 = Book Value of Equity -1.18b / Total Liabilities 4.44b |
| Total Rating: 1.54 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 66.04
| 1. Piotroski 2.50pt |
| 2. FCF Yield 0.29% |
| 3. FCF Margin 10.75% |
| 4. Debt/Equity 2.60 |
| 5. Debt/Ebitda 17.65 |
| 6. ROIC - WACC (= 6.26)% |
| 7. RoE -8.15% |
| 8. Rev. Trend 99.87% |
| 9. EPS Trend 88.08% |
What is the price of NET shares?
Over the past week, the price has changed by -11.50%, over one month by -12.49%, over three months by -3.31% and over the past year by +78.80%.
Is NET a buy, sell or hold?
- Strong Buy: 14
- Buy: 6
- Hold: 12
- Sell: 1
- Strong Sell: 1
What are the forecasts/targets for the NET price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 239.4 | 28.4% |
| Analysts Target Price | 239.4 | 28.4% |
| ValueRay Target Price | 241.2 | 29.4% |
NET Fundamental Data Overview November 15, 2025
P/E Forward = 181.8182
P/S = 37.1511
P/B = 58.6864
P/EG = 2.3548
Beta = 1.927
Revenue TTM = 2.01b USD
EBIT TTM = -85.7m USD
EBITDA TTM = 138.8m USD
Long Term Debt = 1.97b USD (from longTermDebt, last quarter)
Short Term Debt = 1.36b USD (from shortTermDebt, last quarter)
Debt = 3.50b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 2.45b USD (from netDebt column, last quarter)
Enterprise Value = 74.26b USD (74.80b + Debt 3.50b - CCE 4.04b)
Interest Coverage Ratio = -11.70 (Ebit TTM -85.7m / Interest Expense TTM 7.32m)
FCF Yield = 0.29% (FCF TTM 216.4m / Enterprise Value 74.26b)
FCF Margin = 10.75% (FCF TTM 216.4m / Revenue TTM 2.01b)
Net Margin = -5.12% (Net Income TTM -103.0m / Revenue TTM 2.01b)
Gross Margin = 75.19% ((Revenue TTM 2.01b - Cost of Revenue TTM 499.6m) / Revenue TTM)
Gross Margin QoQ = 73.97% (prev 74.88%)
Tobins Q-Ratio = 12.83 (Enterprise Value 74.26b / Total Assets 5.79b)
Interest Expense / Debt = 0.08% (Interest Expense 2.91m / Debt 3.50b)
Taxrate = 169.7% (out of range, set to none) (3.14m / 1.85m)
NOPAT = unknown (EBIT/Op.Income or Taxrate missing)
Current Ratio = 2.04 (Total Current Assets 4.54b / Total Current Liabilities 2.22b)
Debt / Equity = 2.60 (Debt 3.50b / totalStockholderEquity, last quarter 1.35b)
Debt / EBITDA = 17.65 (Net Debt 2.45b / EBITDA 138.8m)
Debt / FCF = 11.32 (Net Debt 2.45b / FCF TTM 216.4m)
Total Stockholder Equity = 1.26b (last 4 quarters mean from totalStockholderEquity)
RoA = -1.78% (Net Income -103.0m / Total Assets 5.79b)
RoE = -8.15% (Net Income TTM -103.0m / Total Stockholder Equity 1.26b)
RoCE = -2.65% (EBIT -85.7m / Capital Employed (Equity 1.26b + L.T.Debt 1.97b))
RoIC = 17.85% (negative operating profit) (EBIT -85.7m / (Assets 5.79b - Curr.Liab 2.22b - Cash 4.04b))
WACC = 11.59% (E(74.80b)/V(78.30b) * Re(12.13%) + (debt cost/tax rate unavailable))
Discount Rate = 12.13% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 0.85%
[DCF Debug] Terminal Value 68.52% ; FCFE base≈197.8m ; Y1≈234.6m ; Y5≈365.8m
Fair Price DCF = 10.78 (DCF Value 3.40b / Shares Outstanding 315.3m; 5y FCF grow 19.87% → 3.0% )
EPS Correlation: 88.08 | EPS CAGR: 72.80% | SUE: 1.87 | # QB: 2
Revenue Correlation: 99.87 | Revenue CAGR: 29.73% | SUE: 4.0 | # QB: 10
Additional Sources for NET Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle