Stock Analysis & Valuation Tenable Holdings, Inc. (0ZC0.L)

• Previous Close: £22.06
• Sector Valuation Confidence Level: Low

Valuation method	Value, £	Upside, %
Artificial intelligence (AI)	29.20	32
Intrinsic value (DCF)	22.17	0
Graham-Dodd Method		n/a
Graham Formula		n/a

Strategic Investment Analysis

Company Overview

Tenable Holdings, Inc. (LSE: 0ZC0.L) is a leading provider of cyber exposure solutions, headquartered in Columbia, Maryland. The company specializes in identifying, assessing, and prioritizing cyber risks across traditional and modern attack surfaces. Its comprehensive suite of products includes cloud-delivered SaaS platforms like Tenable.io, Tenable.cs, and Tenable.ep, which offer risk-based vulnerability management, cloud security, and unified cyber risk assessment. Additionally, Tenable provides specialized solutions such as Tenable.ad for Active Directory security and Tenable.ot for operational technology (OT) environments. With a global presence spanning the Americas, Europe, the Middle East, Africa, and Asia-Pacific, Tenable serves organizations seeking to enhance their cybersecurity posture. Operating in the fast-growing cybersecurity sector, Tenable is well-positioned to capitalize on increasing demand for vulnerability management and risk assessment solutions amid rising cyber threats.

Investment Summary

Tenable Holdings presents a compelling investment opportunity in the cybersecurity sector, driven by its strong product portfolio and recurring revenue model. The company operates in a high-growth industry, with increasing global demand for cyber exposure solutions. However, investors should note that Tenable is not yet profitable, reporting a net loss of $36.3 million in its latest fiscal year. Despite this, the company generates positive operating cash flow ($217.5 million), indicating healthy underlying business operations. With a market cap of $3.93 billion and a beta of 0.83, Tenable offers moderate volatility relative to the broader market. The lack of dividends may deter income-focused investors, but growth-oriented investors may find value in Tenable's expanding market share and technological leadership in vulnerability management.

Competitive Analysis

Tenable competes in the crowded cybersecurity market, differentiating itself through its focus on comprehensive cyber exposure management. The company's competitive advantage lies in its unified platform approach, combining IT, OT, and cloud security into a single risk-based view. Tenable's Nessus Professional remains an industry-standard vulnerability assessment tool, giving it strong brand recognition. However, the company faces intense competition from larger, more diversified cybersecurity vendors with greater resources for R&D and acquisitions. Tenable's specialization in vulnerability management could be both a strength and a weakness—while it provides deep expertise, it may limit the company's ability to compete in adjacent security markets. The company's cloud-native offerings (Tenable.io, Tenable.cs) position it well against modern security threats, but it must continue to innovate to maintain its edge against competitors expanding their own cloud security capabilities. Tenable's mid-market and enterprise focus provides stability, though it may face challenges in competing for very large enterprise deals against more established players.

Major Competitors

• Palo Alto Networks, Inc. (PANW): Palo Alto Networks is a cybersecurity leader with a broader product portfolio than Tenable, including next-gen firewalls and cloud security. Its larger scale and financial resources give it an advantage in R&D and acquisitions. However, Tenable maintains deeper capabilities in vulnerability management specifically. Palo Alto's higher valuation multiples reflect its market leadership position.
• Qualys, Inc. (QLYS): Qualys is a direct competitor in vulnerability management with its cloud-based platform. It has a longer track record of profitability than Tenable but may lack Tenable's breadth in OT and Active Directory security. Qualys' agent-based approach differs from Tenable's hybrid scanning methods, creating differentiation in the market.
• Rapid7, Inc. (RPD): Rapid7 offers competing vulnerability management and threat detection solutions. Its Insight platform competes directly with Tenable.io, and both companies target similar mid-market customers. Rapid7 has stronger capabilities in security analytics and SIEM, while Tenable maintains an edge in OT security and legacy vulnerability assessment.
• Check Point Software Technologies Ltd. (CHKP): Check Point is a more established cybersecurity vendor with strong firewall and endpoint security offerings. While it competes less directly with Tenable's core vulnerability management business, its broader security suite poses a competitive threat in enterprise accounts. Check Point's profitability and cash reserves give it financial advantages over Tenable.
• CrowdStrike Holdings, Inc. (CRWD): CrowdStrike competes in the broader endpoint security market with its Falcon platform. While not a direct vulnerability management competitor, CrowdStrike's threat intelligence capabilities overlap with Tenable's risk assessment functions. CrowdStrike's rapid growth and strong brand pose competitive challenges for Tenable in enterprise security budgets.