PagerDuty, Inc. (NYSE: PD) provides on-call management software. Its platform takes digital signals from practically any software-enabled system or device, combines them with human response data, and orchestrates teams to perform appropriate real-time actions. The majority of its revenue comes from cloud-hosted subscription fees, which are the company's primary source of revenue.
Why Should Investors Exit?
Valuation Methodology: EV/Sales Multiple Based Relative Valuation
(Analysis by Kalkine Group)
* % Premium/(Discount) is based on our assessment of the company's NTM trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
PD's stock price has fallen 20.12% in the past six months and is currently leaning towards the lower band of its 52-week range of USD 28.76 to USD 58.36. We have valued the stock using the EV/Sales-based relative valuation methodology and arrived at a target price of USD 30.00.
Considering the company's leveraged balance sheet, a decline in operating earnings, macro headwinds, current valuation, and other technical indicators, we recommend a "Sell" rating on the stock at the closing price of USD 33.26, up 0.73% as of February 01, 2022.