Blog

Qualys (QLYS) shares are trending slightly higher so far this month, showing around a 1% positive return over the past week. This comes at a time when the broader technology sector continues to face market volatility. Investors are keeping an eye on valuation and trends after recent pullbacks.

See our latest analysis for Qualys.

Zooming out, Qualys’s share price has slipped nearly 8% year-to-date but still posts a positive 1-year total shareholder return of around 6%. This reflects a mix of investor caution and enduring belief in its growth story. The momentum has faded recently, although its longer-term track record highlights an ability to deliver for shareholders.

Curious what else savvy investors are discovering? This could be a perfect time to broaden your research with fast growing stocks with high insider ownership

With Qualys trading below its analyst price target and fundamentals showing steady growth, the key question now is whether the stock is undervalued and offering potential upside, or if the market has already priced in future gains.

The current narrative fair value for Qualys lands at $141, which is noticeably higher than its last closing price of $128.05. This gap highlights ongoing optimism about the company’s prospects and sets the foundation for the key thinking driving this estimate.

Adoption of Qualys’ new cloud-native risk operations center (ROC) and Agentic AI platform positions the company as a leading pre-breach risk management provider. It offers unified orchestration, automation, and remediation across both Qualys and non-Qualys data. This opens incremental greenfield opportunities and should support higher ARPU and expanded TAM, leading to durable revenue and earnings growth.

Read the complete narrative.

What exactly propels this bullish narrative? Behind the ambitious price target are bold expectations about rising average customer spend, new platform launches and growing demand from global organizations. Want to see how much future growth, profit expansion and technology innovation must deliver in reality to make these numbers stack up? Find out what the consensus is betting on and what needs to go right by reading the full breakdown.

Result: Fair Value of $141 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, rapid AI innovation and new pricing models could disrupt Qualys’s momentum if competitors advance more quickly in development or if customer adoption trends unexpectedly shift.

Find out about the key risks to this Qualys narrative.

Looking at Qualys through the lens of its price-to-earnings ratio, we see some interesting contrasts. The company’s ratio sits at 25x, which is lower than the US Software industry average of 33.3x and well below its peer average of 45.1x. However, it is slightly above the fair ratio of 24.5x, suggesting the market may be pricing in a mild premium for future potential.

See what the numbers say about this price — find out in our valuation breakdown.

If you have a different perspective or want to dig into the figures on your own, you can build a narrative in under three minutes with Do it your way.

A great starting point for your Qualys research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

Take your investing strategy up a notch with these handpicked market opportunities. Do not let these trends pass you by while others seize the moment:

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include QLYS.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Aurora Innovation (AUR) shares have edged slightly higher recently, following a modest uptick of about 2% in the last day and smaller gains over the past week. Investors seem to be weighing the company’s performance during the month, as Aurora continues its work in autonomous vehicle technology.

See our latest analysis for Aurora Innovation.

Zooming out, Aurora Innovation’s 1-year share price return is still down double digits, while its three-year total shareholder return remains notably positive. After a recent stretch of modest gains, momentum is still searching for its footing as investors gauge the company’s long-term roadmap and evolving risk profile.

If Aurora’s recent moves have you reflecting on shifts across the sector, now is the perfect time to explore innovation on a broader scale through the See the full list for free.

With shares trading well below analyst price targets and impressive long-term gains in the rearview, investors now face a critical question: Is Aurora a bargain poised for growth, or is the market already factoring in its future potential?

At a price-to-book ratio of 4.8x, Aurora Innovation trades below its peer average of 5.9x based on this valuation measure. This suggests the stock is relatively more attractively priced compared to similar companies. With the last close at $5.15, this indicates the market is discounting Aurora relative to its book value more than its immediate peer group.

The price-to-book ratio compares a company’s market value to its net asset value. This metric is particularly relevant for asset-light and high-growth sectors like software and autonomous vehicles. For Aurora, this ratio reflects what investors are willing to pay for the company’s equity compared to the book value recorded on its balance sheet.

This valuation suggests investors may be skeptical about Aurora’s path to profitability or are discounting near-term challenges, despite the sector’s broader appetite for growth. However, the company’s price-to-book still remains higher than the US Software industry average of 4x. This signals the market may still be assigning a premium for its technology or future prospects relative to the average US software company, though less so compared to its closest peers.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Book of 4.8x (UNDERVALUED compared to peers)

However, continued net losses and uncertainty around the company’s path to profitability remain challenges that could weigh on future share performance.

Find out about the key risks to this Aurora Innovation narrative.

While the price-to-book ratio offers one angle on Aurora’s value, the SWS DCF model provides a different perspective. According to our DCF analysis, Aurora shares are currently trading about 37.8% below our estimate of their fair value. This suggests a considerable undervaluation if you believe the model’s assumptions.

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Aurora Innovation for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.

If you see the story differently or want to dig into the numbers yourself, you can craft your own take in just a few minutes with Do it your way.

A great starting point for your Aurora Innovation research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

Smart investors never settle for just one option. Supercharge your research by tapping into untapped potential, income opportunities, and innovation leaders before the crowd moves in.

• Uncover companies reshaping artificial intelligence and automation by reviewing these 27 AI penny stocks. These firms are disrupting industries with bold advancements and new business models.

• Generate steady income streams by assessing these 17 dividend stocks with yields > 3%. These options offer attractive yields and strong fundamentals for long-term growth.

• Capitalize on unique trends in decentralized finance by evaluating these 80 cryptocurrency and blockchain stocks. These selections are positioned at the frontier of digital finance and next-generation payment solutions.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include AUR.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com