Radware (RDWR) is back in focus after reporting record 2025 results, with cloud security standing out as a key driver and cloud ARR reaching about US$95 million in the fourth quarter.

Radware’s share price has been volatile around the record 2025 results and cloud security updates, with a 1-day share price return of 1.83% and a 7-day share price return down 10.22%. At the same time, a 19.64% year-to-date share price return and a 43.76% three-year total shareholder return suggest momentum has been building over a longer horizon.

If Radware’s cloud and AI security focus has your attention, it can be useful to see what else is moving in the sector via 48 AI infrastructure stocks.

With Radware trading around US$28.45 and sitting roughly 12% below the average analyst price target of US$32, yet carrying an intrinsic value estimate that implies a premium, you have to ask: is there still a buying opportunity here, or is the market already pricing in future growth?

Price-to-Earnings of 60.5x: Is it justified?

Radware closed at $28.45 with our data indicating a P/E of 60.5x, a level that sits well above both peer and broader industry averages.

The P/E ratio compares the company’s share price with its earnings per share and is a common way to gauge how much investors are paying for each dollar of earnings. For a cyber security and application delivery provider like Radware, a higher P/E can reflect expectations around earnings durability, cloud security demand and the quality of recurring revenue.

Here, Radware is described as expensive on a P/E of 60.5x versus a peer average of 23.7x and a US Software industry average of 28.2x. That is a substantial premium, which suggests the market is assigning a higher value to Radware’s current and future earnings than to many software peers, even though forecasts indicate revenue growth of 7.9% per year compared with 11.8% per year for the broader US market.

Result: Price-to-Earnings of 60.5x (OVERVALUED)

However, a rich P/E multiple and revenue growth of 7.9% a year could be vulnerable if cloud security demand softens or if competitors put pressure on pricing and margins.

Another View: Cash Flows Point to a Different Story

While the 60.5x P/E suggests Radware is expensive, the SWS DCF model goes a step further and values future cash flows at about $21.13 per share, below the current $28.45 price. That gap implies less margin for error if expectations around growth or profitability change.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Radware 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 47 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

Mixed signals so far, right? If you want a clearer picture, move quickly, review the full data set, and weigh the 1 key reward and 1 important warning sign.

Looking for more investment ideas?

If Radware has sharpened your thinking, do not stop here. Broaden your watchlist and give yourself more options before making your next move.

• Target growth potential while keeping quality in focus with the 47 high quality undervalued stocks.
• Strengthen your income stream by scanning companies in the 10 dividend fortresses.
• Prioritise resilience by reviewing companies highlighted in the 62 resilient stocks with low risk scores.

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.