At a time when a lot of cybersecurity stocks are getting overpriced and overvalued, CyberArk (NASDAQ:CYBR) remains one of the few undervalued names for investors to swap their frothy shares of expensive SaaS stocks. It offers a balance of growth, a healthy balance sheet, and offerings with a strong product-market fit in its niche privilege access space. Demand for cloud security solutions remains a strong tailwind, and I expect its valuation to keep expanding from here.
CyberArk remains one of the few cybersecurity plays that offer a decent balance of growth and value. While most investors don't care about value in the formative years of a SaaS business, I believe a SaaS business which can demonstrate value in the form of an identifiable competitive advantage, great management, healthy balance sheet and profitable P&L at a decent valuation shouldn't be passed up by investors.
I've been following CyberArk for the past three years. Initially, I was skeptical about its ability to sustain its growth narrative. Like other skeptics, I've been proven wrong after watching its market cap triple within the past 36 months.
Going forward, its clearer that CyberArk has a management team that can drive a successful go-to-market narrative to expand the TAM of its privilege identity space.
The narrative has always been about protecting privileged accounts and securing access to the most critical security devices and agents. CyberArk is one of the few plays that's been able to sell the importance of securing both the man and the machine. While most network security vendors focus on securing the networks and the devices within it, CyberArk's narrative is more about securing the agents that build the networks and operate the devices within it. In reality, if these agents are up to speed on the best security practices and policies, we won't have data breaches and data
