Netskope (NTSK) has introduced new security features for Model Context Protocol traffic within its Netskope One platform, addressing rising AI integration in enterprise systems. While its stock surged by 7.36% in a day and 10.75% over a week, it remains down 12.49% year-to-date, indicating mixed market sentiment. With substantial annual revenue growth near 20%, Netskope currently trades at a high price-to-sales (P/S) ratio of 12.2x, surpassing industry averages of 8.3x and 5x. This valuation suggests optimism about future earnings, but it raises questions about sustainability, particularly if growth slows. A discounted cash flow (DCF) model estimates Netskope’s fair value at $9.96 per share, underlining potential overvaluation. Investors should consider both growth prospects and risks when evaluating Netskope’s position within the AI security landscape. Comprehensive analysis tools like Simply Wall St can help investors assess this fast-evolving sector.
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