Wondering if Qualys might be undervalued or poised for a comeback? You are not alone, as many investors are asking the same question amid shifting market dynamics.
Qualys’ share price jumped 14.9% over the last month but is still down 8.3% over the past year, hinting at renewed interest and changing risk perceptions for the stock.
Much of the recent buzz around Qualys follows its latest product innovation announcements and industry partnerships, which have caught the attention of analysts and investors. These developments are viewed as catalysts for both future growth and the recent uptick in price.
Our initial valuation check gives Qualys a score of 3 out of 6, but that is just one lens. Let’s unpack the main valuation methods and explore if there is an even better way to assess the company’s fair value by the end of this article.
Find out why Qualys’s -8.3% return over the last year is lagging behind its peers.
A Discounted Cash Flow (DCF) model estimates a company’s intrinsic value by projecting its future cash flows and then discounting these figures back to reflect their value today. This approach helps investors understand what the company ought to be worth based on its actual ability to generate cash, rather than just accounting profits.
For Qualys, the latest reported Free Cash Flow sits at $271.1 million. Analyst estimates suggest Free Cash Flow will continue to grow, reaching roughly $320.5 million by the end of 2029. While analysts typically provide forecasts for up to five years, projections beyond this horizon are extrapolated by Simply Wall St. This offers a longer-term perspective on growth.
Using the 2 Stage Free Cash Flow to Equity model and discounting these future cash flows at an appropriate rate, the DCF model calculates an intrinsic value per share of $155.67. With the current market price reflecting a 9.5% discount to this estimated fair value, DCF analysis suggests that Qualys shares are very close to being fairly valued.
Result: ABOUT RIGHT
Qualys is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment’s notice. Track the value in your watchlist or portfolio and be alerted on when to act.
QLYS Discounted Cash Flow as at Nov 2025
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Qualys.
The Price-to-Earnings (PE) ratio is a widely used valuation metric for profitable companies because it relates what investors are willing to pay for a share relative to the company’s annual earnings. For companies like Qualys that consistently generate profits, the PE ratio makes it easier to compare their valuation to other software firms and to broader market benchmarks.
Growth expectations and risks play a crucial role in what the “right” PE ratio should be. Investors generally assign higher PE ratios to companies expected to grow earnings quickly, while higher risk can lower the fair multiple. For context, Qualys currently trades at a PE of 26.7x, which is below the industry average of 31.8x and far beneath the peer average of 57.4x.
To add more nuance, Simply Wall St introduces the concept of a Fair Ratio, which is calculated as 25.4x for Qualys. The Fair Ratio incorporates factors like Qualys’ earnings growth, industry profile, profit margins, market capitalization, and company-specific risks, giving a more holistic view of what the multiple ought to be. This proprietary approach offers a more balanced benchmark than simply comparing with peers or industry averages, which may not reflect a company’s unique attributes and risks.
Since Qualys’ actual PE of 26.7x is just above its Fair Ratio of 25.4x, the shares appear to be valued about right based on earnings, factoring in its growth outlook and profitability.
Result: ABOUT RIGHT
NasdaqGS:QLYS PE Ratio as at Nov 2025
PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1438 companies where insiders are betting big on explosive growth.
Earlier we mentioned that there is an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is your personal investment story. It captures your unique perspective on a company by connecting the story you believe in with specific numbers such as fair value, future revenue, earnings, and margins.
Narratives link the qualitative drivers behind a company’s business, such as new products, partnerships, or risks, to a concrete financial forecast and translate those estimates into an actionable fair value. They help you make smarter decisions by letting you see instantly how your point of view stacks up against the current share price.
On Simply Wall St’s Community page, millions of investors use Narratives as an easy and dynamic tool. Each time news or earnings break, Narratives are updated automatically so your investment view always stays relevant. For example, some Qualys Narratives might assume aggressive expansion and set a fair value at $160, while others take a more cautious stance, coming in at $97. This helps you clearly identify whether now is the right time to make investment decisions based on your own convictions.
Do you think there’s more to the story for Qualys? Head over to our Community to see what others are saying!
NasdaqGS:QLYS Community Fair Values as at Nov 2025
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
