Pure Storage Inc (PSTG) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Pure Storage Inc stock (PSTG) is currently trading at $65.47. Pure Storage Inc PE ratio is 118.45. Pure Storage Inc PS ratio (Price-to-Sales) is 5.87. Analyst consensus price target for PSTG is $91.21. WallStSmart rates PSTG as Hold.
- PSTG PE ratio analysis and historical PE chart
- PSTG PS ratio (Price-to-Sales) history and trend
- PSTG intrinsic value — DCF, Graham Number, EPV models
- PSTG stock price prediction 2025 2026 2027 2028 2029 2030
- PSTG fair value vs current price
- PSTG insider transactions and insider buying
- Is PSTG undervalued or overvalued?
- Pure Storage Inc financial analysis — revenue, earnings, cash flow
- PSTG Piotroski F-Score and Altman Z-Score
- PSTG analyst price target and Smart Rating
Pure Storage Inc
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PSTG Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Pure Storage Inc (PSTG)
PSTG trades 195% above its Graham fair value of $25.74, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Pure Storage Inc (PSTG) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, peg ratio, revenue growth. Concerns around operating margin and price/book. Fundamentals are solid but monitor weak areas for improvement.
Pure Storage Inc (PSTG) Key Strengths (5)
Earnings per share surging 140.60% year-over-year
86.68% of shares held by major funds and institutions
Large-cap company with substantial market presence
Good growth relative to its price
Strong revenue growth at 20.40% annually
Supporting Valuation Data
Pure Storage Inc (PSTG) Areas to Watch (5)
Very thin margins with limited operational efficiency
Very expensive at 14.3x book value
Premium valuation at 5.9x annual revenue
Thin profit margins with limited profitability
Moderate profitability with room for improvement
Supporting Valuation Data
Pure Storage Inc (PSTG) Detailed Analysis Report
Overall Assessment
This company scores 59/100 in our Smart Analysis, earning a C grade. Out of 10 metrics analyzed, 5 register as strengths (avg 9.0/10) while 5 fall into concern territory (avg 3.4/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on EPS Growth, Institutional Own., Market Cap. Valuation metrics including PEG Ratio (1.41) suggest the stock is attractively priced. Growth metrics are encouraging with Revenue Growth at 20.40%, EPS Growth at 140.60%.
The Bear Case
The primary concerns are Operating Margin, Price/Book, Price/Sales. Some valuation metrics including Price/Sales (5.87), Price/Book (14.30) suggest expensive pricing. Profitability pressure is visible in Return on Equity at 13.70%, Operating Margin at 8.23%, Profit Margin at 5.14%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Operating Margin improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 13.70% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 20.40% strong but requiring continuation.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. Strengths and concerns are roughly balanced. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (EPS Growth, Institutional Own.) and negatives (Operating Margin, Price/Book). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
PSTG Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
PSTG's Price-to-Sales ratio of 5.87x trades at a 32% premium to its historical average of 4.44x (84th percentile). The current valuation is 51% below its historical high of 11.92x set in Oct 2015, and 194% above its historical low of 2x in Mar 2020. Over the past 12 months, the PS ratio has expanded from ~5.0x, reflecting growing market expectations outpacing revenue growth.
WallStSmart Analysis Synopsis
Data-driven financial summary for Pure Storage Inc (PSTG) · TECHNOLOGY › COMPUTER HARDWARE
The Big Picture
Pure Storage Inc is a strong growth company balancing expansion with improving profitability. Revenue reached 3.7B with 20% growth year-over-year. Profit margins are thin at 5.1%, typical for companies in this phase that are reinvesting heavily in growth.
Key Findings
Generating 201M in free cash flow and 268M in operating cash flow. Earnings are translating into actual cash generation.
What to Watch Next
Margin expansion: can Pure Storage Inc push profit margins above 15% as the business scales?
Growth sustainability: can Pure Storage Inc maintain 20%+ revenue growth, or will competition slow it down?
Valuation compression risk at a P/E of 118.5x. Any growth miss could trigger a sharp correction.
Sector dynamics: monitor COMPUTER HARDWARE industry trends, competitive moves, and regulatory changes that could impact Pure Storage Inc.
Bottom Line
Pure Storage Inc offers an attractive blend of growth (20% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Pure Storage Inc(PSTG)
NYSE
TECHNOLOGY
COMPUTER HARDWARE
USA
Pure Storage, Inc. provides data storage technology and solutions in the United States and internationally. The company is headquartered in Mountain View, California.