1. MARKETS
  2. SECTOR : SOFTWARE & SERVICES
  3. INDUSTRY : INFORMATION TECHNOLOGY SERVICES
  4. RAPID7 INC
Rapid7 Inc XNAS: RPD
Value Stock, Under Radar
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20.71 -0.19 (-0.91%)
53.44% Fall from 52W High
746.1K
XNAS Volume

XNAS 29 Aug, 2025 5:30 PM (EDT)

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Analyze undervaluation/ overvaluation of Rapid7 Inc with current and 1 Year Forward PE

INSIGHT
Rapid7 Inc is overvalued at both current PE and future earnings estimates
Right Now : Current PE vs 5 year Average PE
Overvalued
Fair price

Based on 5Yr Average PE

-14.7
Upside

Current PE versus 5Yr Average PE

-170.98 %
1 Year Forward : 5 Yr Average PE & Projected 1Yr Forward EPS*
Overvalued
Fair price

Based on 1Yr Forward EPS

-73.1
Upside

5 Yr Average PE & 1Yr Forward EPS

-453.04 %
Info: The Rapid7 Inc's current PE is 52.55 ,while its 5 year PE average is -37.3. Its forward PE based on analyst estimates is 10.6
Note: The forward PE ratio (or forward price-to-earnings ratio) is calculated by dividing the current share price of a company by the estimated(1Yr) future (“forward”) earnings per share (EPS) of that company.

Analyze undervaluation/ overvaluation of Rapid7 Inc with historical PE and PBV ratios

from 02 Sep, 2023 to 01 Sep, 2025

Restated PE

Strong Buy Zone

14.2% into PE buy sell zone

% time spent below current PE
0 20 40 60 80 100
Strong upside potential
Gains already realized

Out of 204 days, Rapid7 Inc traded 29 (14.2%) days below the current PE of on Restated basis.

Originally Reported PE

Strong Buy Zone

6.9% into PE buy sell zone

% time spent below current PE
0 20 40 60 80 100
Strong upside potential
Gains already realized

Out of 204 days, Rapid7 Inc traded 14 (6.9%) days below the current PE of on Originally Reported basis.

Note: This is a reverse percentile score. Values close to 100% are bad while values close to 0% are good. Days when PE is negative are not considered in the analysis
6.9%

Strong Buy Zone

% Days traded below current PE

52.6
 

Current PE

64.5
 

Average PE

63.7
 

Median PE

-73.1
 

Forward 1Y Price

10.6
 

Forward PE

2.0
 

Forward EPS

PE range Days traded in range % Days traded in range Days traded within & below range % Days traded within & below range
45-52
 13 6.4% 13 6.4%
52-54
Current PE is 52.6
8 3.9% 21 10.3%
54-61
 20 9.8% 41 20.1%
61-63
 47 23.0% 88 43.1%
63-64
 21 10.3% 109 53.4%
64-66
 36 17.6% 145 71.1%
66-68
 20 9.8% 165 80.9%
68-78
 19 9.3% 184 90.2%
78-85
 20 9.8% 204 100.0%
Total 204 204
14.2%

Strong Buy Zone

% Days traded below current PE

52.6
 

Current PE

58.1
 

Average PE

57.8
 

Median PE

-73.1
 

Forward 1Y Price

10.6
 

Forward PE

2.0
 

Forward EPS

PE range Days traded in range % Days traded in range Days traded within & below range % Days traded within & below range
41-49
 10 4.9% 10 4.9%
49-52
 13 6.4% 23 11.3%
52-54
Current PE is 52.6
38 18.6% 61 29.9%
54-55
 13 6.4% 74 36.3%
55-58
 36 17.6% 110 53.9%
58-60
 37 18.1% 147 72.1%
60-62
 21 10.3% 168 82.4%
62-70
 16 7.8% 184 90.2%
70-76
 20 9.8% 204 100.0%
Total 204 204

FAQ

  • What is the PE ratio?

    In its simplest definition, the price-to-earnings ratio (PE ratio) represents the price an investor pays per dollar of a company's earnings.
    For example, if a company has a PE ratio of 25, investors are willing to pay USD 25 for each dollar of the company's current earnings. This indicates that investors value the stock at 25 times its current earnings, with an expectation of future earnings growth.
    The PE ratio fluctuates based on investor sentiment towards a company. Positive sentiment drives the stock price higher, resulting in a higher PE ratio (investors pay more for each dollar of earnings). Conversely, negative sentiment lowers the PE ratio (investors pay less for each dollar of earnings).

  • What is the PE buy/sell zone?

    The PE buy/sell zone is calculated based on how many days a stock has traded at its current PE level.
    To do this, we compare the current PE to the stock’s historical PE performance, to find out how often (for how many days in the past) the stock has traded at its current PE value.
    If the stock has usually traded above its current PE level (it’s at a higher PE for the majority of trading days), then the stock is cheaper than usual and in the PE buy zone.
    If the stock has usually traded below its current PE level (it’s at a lower PE for the majority of trading days), then the stock is more expensive than usual and in the PE sell zone.

  • How is the PE buy sell zone useful?

    The PE buy sell zone tells you if a stock’s current PE level is unusually high or low, and if a stock doesn’t typically trade at that level. It helps investors identify stocks that are undervalued or overvalued in terms of their typical PE trading behavior.
    Investors should keep in mind that the buy zone/sell zone is not a foolproof buy or sell signal. For example, the PE of a stock may have fallen substantially due to adverse events or negative news. Or the PE may have risen sharply after the company has won new orders, made an acquisition, announced a buyback, or some other positive event. PE Buy/Sell Zone signals should be looked at in conjunction with other information.

  • Why are the number of days different for Restated and Originally Reported data?

    This can be because of any of the 2 following reasons:
    1. Days when PE is negative are not considered in the analysis. So if only 1 of the Restated or Originally Reported PE is negative and the other is not, then the days will be different
    2. Companies have reported Originally Reported data for limited period.
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