FireEye’s scale in the cybersecurity space
In this part of the series, we’ll look at FireEye’s (FEYE) value proposition among select US cybersecurity companies. On October 27, 2016, Cisco Systems (CSCO) was the largest player globally by market capitalization in the security space. Cisco Systems is considered a leader in the overall security appliance market.
FireEye’s enterprise value multiples
Now, let’s look at FireEye’s EV-to-EBITDA[1. enterprise value to earnings before interest, tax, depreciation, and amortization] multiple. We’ll also look at other US cybersecurity players.
Currently, FireEye has negative EBITDA, which is why we haven’t included it here. The forward EV-to-EBITDA multiple for Palo Alto Networks stood at ~21.4x. Cisco Systems had a multiple of ~6.6x, and Fortinet had a multiple of 15.6x on October 27, 2016.
FireEye’s dividend yield
Cisco Systems’s forward annual dividend yield was ~3.4% on October 27, 2016. This was higher than Symantec’s forward annual dividend yield of ~1.2%. Most of the companies in the cybersecurity space are relatively new, which is why most of them don’t pay dividends. These companies include Palo Alto Networks, FireEye, and Fortinet.
Investors who want to gain exposure to Cisco could consider investing in the PowerShares QQQ ETF (QQQ). QQQ invests ~2.7% of its holdings in Cisco and has an ~28.4% exposure to application software.
In the final part of our series, we’ll see what analysts recommend for FireEye.
Suncor Energy (SU) posted its 3Q16 results on October 26. In this series, we’ll evaluate Suncor’s 3Q16 results and compare them to estimates.
In April so far, Italian-American auto giant Fiat Chrysler Automobiles (FCAU) has outperformed the broader market by a wide margin after underperforming in the first quarter.
Royal Dutch Shell (RDS.A) is slated to release its Q1 2019 results on May 2. Before we review the Q1 2019 estimates, let’s recap Shell’s Q4 2018 performance compared to forecasts.
United Parcel Service (UPS) is scheduled to report its first-quarter earnings results on April 25.
Cleveland-Cliffs (CLF) is expected to report its first-quarter earnings results on April 25.
While the overall cannabis sector experienced weakness on April 23, some stocks managed to gain some positive momentum in the first half of the day.
After being listed on the NASDAQ (QQQ) on March 29, Lyft (LYFT) stock has traded on a negative note so far.