NET

Cloudflare, Inc.

Fundamental data last updated:July 26, 2026

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company profile

SECTOR

Technology

industry

Software - Infrastructure

Exchange

NYSE

County of HQ

US

Next Earnings Date

07/30/2026

Business Summary

Cloudflare, Inc. functions as a global provider of cloud-based services. The company delivers a comprehensive, integrated cloud security platform designed to safeguard a diverse array of digital environments, encompassing public and private clouds, on-premises infrastructure, Software-as-a-Service (SaaS) applications, and Internet of Things (IoT) devices. Its security portfolio features tools such as cloud firewalls, bot mitigation, distributed denial-of-service (DDoS) protection, IoT security, SSL/TLS encryption, secure origin connections, and rate limiting capabilities. Beyond security, Cloudflare also boosts online performance through services like content delivery networks (CDNs), intelligent routing, and various content, mobile, and image optimization tools. For enhanced reliability and availability, it provides solutions such as load balancing, its proprietary Anycast network, a virtual backbone, DNS services, DNS resolvers, and virtual waiting rooms. Furthermore, the company offers internal infrastructure tools, including "on-ramps" that facilitate seamless connections for users, devices, or locations to its expansive network, alongside "filters" engineered for data protection, inspection, and access management. Developer-centric solutions encompass serverless computing, programmable networks, website creation, domain registration, a suite of Cloudflare applications, advanced analytics, and data localization management. For individual consumers, Cloudflare provides a DNS Resolver application to improve internet browsing and a Consumer VPN to secure and speed up mobile device traffic. Its clientele spans a broad spectrum of industries, including technology, healthcare, financial services, consumer and retail, non-profit organizations, and government agencies. Established in 2009, Cloudflare, Inc. is headquartered in San Francisco, California.

 


VALUATION

P/E

-1006.37

Market Cap ($M USD)

$87.87B

Forward P/E

N/A

PEG

N/A

PRICE TO SALES

37.73

PRICE TO BOOK

57.18

EV / EBITDA

655.95

5-Year Average P/E

Free Cash Flow Yield

0.40%

DCF Value

$7.61

Graham Number

N/A

Price to FCF

247.14

EV to FCF

254.40

Earnings Yield

-0.10%

FCF Yield

0.40%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

-$0.25

Next Year EPS Growth Estimate

$0.00

Next Year Revenue Growth Estimate

$673.84B

Return on Equity (ROE)

-6.23%

FREE CASH FLOW

Operating Margin

-9.27%

Debt-to-Equity

2.54

Piotroski F-Score

2

Altman Z-Score

11.88

Return on Invested Capital (ROIC)

-5.75%

Current Ratio

1.96

Quick Ratio

1.96

Net Debt to EBITDA

18.72

Interest Coverage

-21.84

Gross Profit margin

73.33%

FCF PER SHARE

$1.01

REVENUE PER SHARE

$6.60

Gainseekers Quantitative Analysis

Summary

Cloudflare, Inc. is priced for perfection, yet the numbers paint a different picture. With a staggering Price to Earnings ratio of -801.68 and a DCF value significantly below its snapshot price, the market seems to be overlooking fundamental weaknesses. The Altman Z-score of 9.39 suggests financial stability, but the negative earnings yield and a lack of forward P/E indicate potential growth challenges. Despite a consensus “Buy” rating, the valuation metrics scream caution, hinting at a disconnect between market optimism and financial reality. The company’s financial health is questionable, with a high debt-to-equity ratio and negative ROIC.

AI Exposure / Tech Reliance

Operating in the Software - Infrastructure industry, Cloudflare is well-positioned to leverage AI and modern tech shifts. Its focus on cloud-based solutions aligns with the growing demand for scalable, secure internet infrastructure. This positioning could enable it to capitalize on emerging tech trends, despite current financial headwinds.

The Bull Case

For the optimistic investor, Cloudflare's gross profit margin of 73.48% signals strong pricing power and operational efficiency. Although the Piotroski F-Score is low, the company's ability to generate free cash flow, albeit modestly, suggests potential for capital efficiency improvements. The Altman Z-score indicates a robust financial structure, providing a cushion against volatility. These factors could attract GARP investors looking for long-term growth in a tech-driven world.

The Bear Case

Cloudflare's structural risks are glaring. The Price to Sales ratio of 29.93 and Price to Book of 45.55 highlight its overvaluation, while the EV to EBITDA of 428.80 underscores a disconnect from profitability. The company's negative operating margin and high net debt to EBITDA ratio further exacerbate concerns. With the stock trading near its 52-week high, the technical overextension adds to the risk, making it a precarious choice for value investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$233.06

Institutional Ownership %

1-Year Beta

1.67

Insider Buying % (6 Mo)

Distance to 52-Week High

11.82%

Distance to 52-Week Low

35.84%

EARNINGS SURPRISE %

8.41%

50-DAY SMA

$226.25

200-DAY SMA

$208.35

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.