CyberArk Software (CYBR) is back in focus after new research from the company showed only 1% of organizations fully use Just in Time privileged access, despite expanding AI driven identities and shadow privileges.

The fresh research on Just in Time privileged access lands as CyberArk trades at US$456.73, with short-term share price returns mixed but a 1-year total shareholder return of 32.85% and a very large 3-year total shareholder return pointing to strong longer-term momentum.

If AI driven identity security is on your radar, this is a good moment to broaden your watchlist with high growth tech and AI stocks that are drawing attention in the same theme.

With CyberArk trading close to analyst targets and carrying a very large 3 year total return, the key question now is simple: is there still upside left here, or is the market already pricing in future growth?

Most Popular Narrative: 6.4% Undervalued

With CyberArk last closing at US$456.73 against a fair value estimate of about US$487.74, the most followed narrative sees modest upside still on the table.

The evolving machine identity market, coupled with CyberArk’s focus on AI-driven identity security through its machine identity capabilities and Secrets Management, is expected to drive significant revenue growth as organizations seek integrated solutions to manage increasingly complex identity security needs. CyberArk's unified identity security platform, which includes privileged access management and workforce security, is expected to drive higher average deal sizes, revenue growth, and improved net margins as customers increasingly consolidate their identity security solutions with trusted vendors.

Curious how much growth is baked into that price tag? The narrative leans on faster top line expansion, improving margins, and a future profit multiple that stands out. Want to see the exact earnings and revenue path the model uses to reach that fair value?

Result: Fair Value of $487.74 (UNDERVALUED)

However, the story can change quickly if the Venafi and Zilla integrations prove messy, or if rising competition in identity security starts to squeeze margins and growth assumptions.

Another View: High P/S Puts More Pressure On The Story

The fair value narrative suggests modest upside, but the price tag tells a tougher story. CyberArk trades on a P/S of 17.7x, almost double both the peer average and its own fair ratio of 8.9x. In plain terms, you are paying up heavily, so what happens if sentiment cools?

Build Your Own CyberArk Software Narrative

If you see the numbers differently or prefer to weigh the assumptions yourself, you can create a fresh view in minutes with Do it your way.

A good starting point is our analysis highlighting 1 key reward investors are optimistic about regarding CyberArk Software.

Looking for more investment ideas?

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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.