Blog

  • A Fresh Look at Valuation as Investor Sentiment Wavers

    A Fresh Look at Valuation as Investor Sentiment Wavers

    SailPoint (SAIL) has seen its stock move lately, with investors keeping an eye on the company’s recent performance numbers and trends. Shares changed only slightly in the last day but have lagged over the past month, showing a cautious sentiment around the name.

    See our latest analysis for SailPoint.

    Looking at the bigger picture, SailPoint’s 1-month share price return of -15.04% highlights a notable loss of momentum. This result caps off an already weak trend so far this year, despite steady demand for its identity security solutions. In a single stroke, the stock has underperformed both recently and over the longer term, signaling that appetite for risk in this corner of enterprise software remains muted.

    If you’re curious to see what else is out there, this could be the perfect time to broaden your search and discover fast growing stocks with high insider ownership

    With shares sitting well below analyst targets, the question facing investors now is whether SailPoint’s recent weakness signals a buying opportunity or if the market has already factored in all of its future growth prospects.

    SailPoint trades at a price-to-sales (P/S) ratio of 10.6x, which is notably higher than both its peer group and industry averages. For investors, this premium valuation raises the question of whether the company’s revenue growth profile is strong enough to justify such a hefty price tag.

    The price-to-sales ratio measures how much investors are willing to pay per dollar of revenue. It is a popular metric for software companies, many of which are still working towards consistent profitability, because it focuses on revenue generation rather than profit. When a P/S ratio stands well above the norm, the market is often anticipating robust revenue growth or defensibility.

    In SailPoint’s case, the current P/S of 10.6x is elevated compared to both the US Software industry average of 4.9x and its peer group average of 8.6x. In addition, our fair P/S ratio estimate is 7.1x, suggesting further downside if expectations moderate. The market is clearly assigning a premium that is above historical or sector benchmarks, implying high confidence in future sales growth or strategic positioning.

    Explore the SWS fair ratio for SailPoint

    Result: Price-to-Sales of 10.6x (OVERVALUED)

    However, slowing revenue growth or persistent operating losses could challenge investor confidence and force a reassessment of SailPoint’s elevated valuation.

    Find out about the key risks to this SailPoint narrative.

    While the price-to-sales ratio points to an overvalued stock, another angle comes from the SWS DCF model. This method looks at the present value of expected future cash flows, rather than just revenue.

    Our DCF model finds SailPoint trading above its estimate of fair value. This suggests investors might be paying a premium for future growth that is not yet guaranteed. Could this mean further downside risk, or is the market simply seeing something others miss?

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

    SAIL Discounted Cash Flow as at Nov 2025

    Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out SailPoint 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 914 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 things differently or want to dig into the details yourself, building your own analysis is quick and straightforward. Try it out: Do it your way

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

    Take control of your portfolio and seize opportunities now. Expand your watchlist by checking out these handpicked stock ideas, each targeting a key trend in today’s market.

    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 SAIL.

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

    Continue Reading

  • Assessing ASICS (TSE:7936) Valuation as Investor Interest Remains Strong

    Assessing ASICS (TSE:7936) Valuation as Investor Interest Remains Strong

    ASICS (TSE:7936) has seen its stock shift in recent trading sessions, drawing attention from investors curious about evolving trends. Looking at recent price moves, the shares have tracked a modest range this month with slight downward pressure.

    See our latest analysis for ASICS.

    Stepping back, ASICS has delivered standout long-term results, with a total shareholder return of 25.4% over the last year and an astonishing 415.75% in the past three years. While the last few months saw some mild share price weakness, the bigger picture still points to sustained momentum and renewed interest from investors looking for growth in consumer brands.

    If you’re curious about what other fast-rising companies are catching attention lately, this is a great time to discover fast growing stocks with high insider ownership

    With shares still trading at a notable discount to analyst targets and robust fundamentals in play, the key question is whether ASICS remains undervalued or if the market has already accounted for its next stage of growth.

    ASICS currently trades at a price-to-earnings (PE) ratio of 31.5x, far above both its peer average and the luxury sector as a whole. This raises questions about whether such a premium is warranted for the brand’s earnings outlook.

    The price-to-earnings ratio measures how much investors are paying for each unit of profit. In consumer brands like ASICS, this multiple often reflects not just present profitability but also expectations for future growth and brand strength.

    Despite strong recent earnings growth and a robust return on equity, this 31.5x multiple is more than double the industry average of 14.9x and also well above our estimated fair ratio of 23.1x. The current valuation suggests that the market is highly optimistic about future performance, potentially pricing in ambitious targets for sustained growth and profitability. If expectations fade, the multiple could contract significantly to better align with peers or its intrinsic potential.

    Explore the SWS fair ratio for ASICS

    Result: Price-to-Earnings of 31.5x (OVERVALUED)

    However, slowing revenue growth and a potential pullback from recent highs could expose the stock to volatility if market sentiment shifts.

    Find out about the key risks to this ASICS narrative.

    Taking a different approach, our SWS DCF model estimates ASICS to be overvalued, with shares trading above the model’s calculated fair value of ¥3,286. While multiples suggest high optimism, the DCF model indicates that future cash flows may not fully support the current market price. Could analyst optimism be running ahead of fundamentals?

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

    7936 Discounted Cash Flow as at Nov 2025

    Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out ASICS 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 914 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 things differently or want to uncover your own perspective, it’s easy to analyze the numbers and tell your version of the story in just a few minutes. Do it your way

    A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding ASICS.

    Every investor deserves the smartest tools. Open the door to new opportunities with Simply Wall Street’s screeners and stay a step ahead in today’s dynamic market.

    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 7936.T.

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

    Continue Reading

  • Martins wins in Lusail as Fornaroli seals 2025 Formula 2 title

    Martins wins in Lusail as Fornaroli seals 2025 Formula 2 title

    Victor Martins was in supreme form as he claimed victory in the Lusail Feature Race, leading home Leonardo Fornaroli in second, a result good enough to give the Invicta Racing driver the 2025 FIA Formula 2 title.

    Martins took the lead from…

    Continue Reading

  • Dinosaur may have walked with a limp 150 million years ago

    Dinosaur may have walked with a limp 150 million years ago

    About 150 million years ago, a long-necked dinosaur walked across a sandy flat that now sits high above Ouray, Colorado.

    Its feet sank into wet sediment, and those steps hardened into a looping line of fossil footprints that scientists are now…

    Continue Reading

  • Those ‘playing’ with NFC Award or 18th Amendment playing with fire, warns Bilawal – Dawn

    1. Those ‘playing’ with NFC Award or 18th Amendment playing with fire, warns Bilawal  Dawn
    2. Kundi reaffirms PPP mission of public service  The Express Tribune
    3. A political legacy forged in courage  Geo News
    4. Bilawal says no court holds authority to…

    Continue Reading

  • Pakistan voices support for Indonesia, Malaysia and Thailand after floods kill over 600 – Arab News

    1. Pakistan voices support for Indonesia, Malaysia and Thailand after floods kill over 600  Arab News
    2. Indonesia searches for hundreds missing in deadly floods  BBC
    3. Deadly storms ravage Asia, killing over 700 with hundreds missing  CNN
    4. Indonesia,…

    Continue Reading

  • ‘Cool and quirky is part of our brand’: how New Zealand became a hothouse for indie games | Games

    ‘Cool and quirky is part of our brand’: how New Zealand became a hothouse for indie games | Games

    Those not immersed in the world of gaming might not be familiar with Pax Australia: the enormous gaming conference and exhibition that takes over the Melbourne Convention and Exhibition Centre every October. My favourite section is always Pax…

    Continue Reading

  • Bringing Indigenous languages back from the brink – Full Story podcast | Indigenous Australians

    Bringing Indigenous languages back from the brink – Full Story podcast | Indigenous Australians

    More than 250 languages were spoken across Australia before British colonisation. Now only half are still in use as a result of policies that suppressed and prevented First Nations people from speaking their mother tongues.

    Indigenous affairs reporter Ella Archibald-Binge travels to two communities including her country to hear from elders, teachers and students about efforts to revive native languages and close the education gap

    Continue Reading

  • US Options Market Grapples With ‘Concentration Risk’ in Clearing

    US Options Market Grapples With ‘Concentration Risk’ in Clearing

    As the US options market heads for a sixth straight year of record volume, some best-known names in the industry are growing nervous about its over-reliance on a small group of banks to guarantee trades for the biggest market makers.

    Every listed US options trade goes through The Options Clearing Corp., a central counterparty that handles more than 70 million contracts a day during busy periods. The trades are submitted to the OCC by its members — who help trades get to the clearing house and act as guarantors in case their clients go bust.

    Most Read from Bloomberg

    There’s a small group of firms at the top. Out of dozens of members, the top five contributed almost half of the OCC’s default fund in the second quarter of 2025. Market participants cite Bank of America Corp., Goldman Sachs Group, Inc. and ABN Amro Bank NV as the three biggest, handling most positions from market makers, who take the other side of almost every options trade. The fact so much volume goes through such a small number of firms raises the risk of widespread losses if one of them should fail.

    “I think there is significant concentration risk in clearing intermediation,” Craig Donohue, chief executive officer of Cboe Global Markets, Inc., said in an interview, without naming specific banks. “I do worry about that.”

    The risk of a major bank failing is unlikely — but not unheard of. Donohue has his own battle scars from a clearing member default: in October 2011, when he was CEO of CME Group Inc., MF Global declared bankruptcy.

    The more immediate risk is that these banks may run out of capacity to support the extraordinary growth of the listed derivatives market, with OCC average daily volume soaring 52% in October from a year earlier. That’s leading to a rise in “self-clearing” by market makers — meaning they become more direct members of the clearing house — which comes with its own risks, given that market makers are more thinly capitalized than banks.

    Bank of America and Goldman Sachs declined to comment. ABN Amro did not immediately respond to a request for comment.

    Related: SGX to List Perpetual Futures to Rival Crypto ‘Bucket Shops’

    Only a handful of clearing brokers have the ability to cross-margin between futures and options, where opposite positions in related instruments can cancel each other out, reducing the amount of margin needed. For example, if a trader is long S&P 500 E-Mini Futures, but short S&P 500 Index Options, the net risk position would be reduced.

    Continue Reading