Is It Too Late To Consider Cloudflare (NET) After Strong Cybersecurity Spotlight And Share Price Surge
Publish Date: 2026-01-28 13:37:00
Source Domain: simplywall.st
- If you are wondering whether Cloudflare’s share price still makes sense at current levels, this article will walk through what the market might be pricing in and how that stacks up against a range of valuation checks.
- Cloudflare shares last closed at US$205.95, with returns of 16.1% over the past week, 1.8% over the past month, 5.1% year to date and 47.1% over the past year, alongside a very large 3 year gain and a 146.4% return over 5 years.
- Recent news coverage has focused on Cloudflare’s role in internet security and performance, including commentary on its position in web infrastructure and content delivery. This helps explain some of the attention around the stock. These developments give context to the recent share price moves, as investors weigh the company’s role in broader themes such as cybersecurity and cloud services.
- Cloudflare currently scores 0 out of 6 on our valuation checks, with the full breakdown available in our valuation summary. Next we will look at what different valuation approaches suggest about the stock, before finishing with a framework that can help you interpret those methods in a more complete way.
Cloudflare scores just 0/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.
Approach 1: Cloudflare Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow model takes projected future cash flows and discounts them back to today, aiming to estimate what the entire business might be worth in present value terms.
For Cloudflare, the model uses last twelve month Free Cash Flow of about US$269.4 million as a starting point, then applies analyst estimates out to 2030 and extrapolated figures beyond that. By 2030, projected Free Cash Flow is US$1.6b, with intermediate years stepping up from US$365.2 million in 2026 to US$1.2b in 2029, based on a mix of analyst inputs and Simply Wall St estimates.
When all these cash flows are discounted back and aggregated using a 2 Stage Free Cash Flow to Equity…
