Commvault Systems, Inc.

Valuation Analysis

About the Company

Commvault Systems, Inc. provides cyber resiliency solutions for enterprises to protect, secure, and recover data, applications, and identity system. The company offers Operational Recovery for backup and recovery capabilities in hybrid enterprise workloads, such as backup, restore, recovery validation, and policy-based data movement to cloud storage; Autonomous Recovery, which adds automation, orchestration, and validation intended to reduce recovery times, downtime, and operational complexity; and Cyber Recovery, which adds cyber preparedness, threat detection, and clean recovery features to help organizations respond to ransomware and other cyber incidents. The company also provides Commvault Cleanroom Recovery, an isolated and on-demand recovery environment in the cloud; Commvault Hyper

Commvault Systems, Inc. Stock at a Glance

Commvault Systems, Inc. (CVLT) is currently trading at $127.76 with a market capitalization of $5.3B. The trailing P/E ratio stands at 80.86x, with a forward P/E of 20.98x. The 52-week range spans from $71.75 to $200.68; the current price is 36.3% below the yearly high. Year-over-year revenue growth stands at +13.3%. The net profit margin stands at 5.97%.

💰 Dividend

Commvault Systems, Inc. currently does not pay a dividend. The company typically reinvests its earnings into growth initiatives and product development.

📊 Analyst Rating

15 analysts rate Commvault Systems, Inc. (CVLT) on consensus: Buy. The average price target is $133.87, implying +4.78% from the current price. Analyst price targets range from $100.00 to $175.00.

Commvault Systems, Inc.: The Investment Case in Detail

Commvault Systems, Inc. (CVLT) operates in the Technology — specifically Software - Application — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 13.3% pace year-over-year, suggesting the business model continues to find new customers and pricing power. With a gross margin near 81.15%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns. Return on equity of 42.49% places management among the most capital-efficient operators in the public market — every euro of shareholder capital is working hard.

The Bear Case

A trailing P/E above 50 combined with revenue growth below 20% is a dangerous combination — the market is paying a steep growth multiple for what is, by the data, only moderately fast expansion. The debt-to-equity ratio of 12260.49% is elevated, meaning the company relies heavily on creditors — refinancing terms will become more important than operational performance in the next economic downturn. Our valuation screen flags the stock as overvalued — current multiples imply the business needs to deliver well above its recent trajectory to justify the price.

Valuation in Context

At a PEG of 3.17, investors are paying more than three times the growth rate for each unit of earnings — that pricing assumes growth not only continues but accelerates from here. The EV/EBITDA multiple of 44.44x reflects rich expectations — historically, multiples at this level have proven hard to maintain for more than a few quarters.

What to Watch Next

• The forward P/E of 20.98x is meaningfully below the trailing 80.86x — analysts expect earnings to step up; the next earnings release is the test.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

The price is in a transition zone relative to the moving averages — no clear signal.

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (9.02%), higher leverage relative to equity.

Trading Data

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