CyberArk: Still A Bargain


  • CyberArk offers one of the best balance of growth and value in the cybersecurity space.
  • The company has a good balance sheet, and its niche strategy has been working for it.
  • Management’s ability to drive its growth initiatives will keep expanding the total addressable market of its security offerings.
  • CyberArk is a buy as I see investors, seeking value, rotating out of frothy SaaS stocks into CyberArk in the near term.

At a time when a lot of cybersecurity stocks are getting overpriced and overvalued, CyberArk (CYBR) remains one of the few undervalued names for investors to swap their frothy shares of expensive SaaS stocks. It offers a balance of growth, a healthy balance sheet, and offerings with a strong product-market fit in its niche privilege access space. Demand for cloud security solutions remains a strong tailwind, and I expect its valuation to keep expanding from here.

CyberArk remains one of the few cybersecurity plays that offer a decent balance of growth and value. While most investors don’t care about value in the formative years of a SaaS business, I believe a SaaS business which can demonstrate value in the form of an identifiable competitive advantage, great management, healthy balance sheet and profitable P&L at a decent valuation shouldn’t be passed up by investors.

I’ve been following CyberArk for the past three years. Initially, I was skeptical about its ability to sustain its growth narrative. Like other skeptics, I’ve been proven wrong after watching its market cap triple within the past 36 months.

Going forward, its clearer that CyberArk has a management team that can drive a successful go-to-market narrative to expand the TAM of its privilege identity space. more

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