| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 53.30 | -82 |
| Graham Formula | 68.80 | -77 |
F5, Inc. (FFV.DE) is a leading provider of multi-cloud application security and delivery solutions, ensuring the security, performance, and availability of network applications across diverse architectures—from on-premises to public cloud environments. Headquartered in Seattle, Washington, F5 serves large enterprises, public sector institutions, and service providers globally through its robust portfolio, including BIG-IP appliances, NGINX Plus, Shape Defense, and Silverline security offerings. The company’s solutions enable seamless application development, deployment, and governance, supported by partnerships with major cloud providers like AWS, Microsoft Azure, and Google Cloud. Operating in the high-growth Software - Application sector, F5 capitalizes on the increasing demand for cloud-native security and performance optimization. With a strong market presence in the Americas, EMEA, and APAC, F5 is well-positioned to benefit from digital transformation trends and the shift toward hybrid and multi-cloud infrastructures.
F5, Inc. presents a compelling investment case due to its strong positioning in the multi-cloud application security and delivery market, a sector experiencing rapid growth driven by cloud adoption and cybersecurity needs. The company’s diversified product portfolio, including hardware and software solutions, provides recurring revenue streams and cross-selling opportunities. With solid financials—€2.82B in revenue and €566.8M net income in the latest fiscal year—F5 demonstrates profitability and operational efficiency (€792.4M operating cash flow). However, its beta of 1.08 suggests higher volatility relative to the market, and the lack of dividends may deter income-focused investors. Competition from pure-play cloud security firms and legacy players poses risks, but F5’s hybrid approach and partnerships with major cloud providers offer a competitive edge. Investors should monitor execution in cloud-native transitions and macroeconomic impacts on enterprise IT spending.
F5, Inc. competes in the crowded application security and delivery market, differentiating itself through a hybrid approach that bridges on-premises and cloud environments. Its BIG-IP and NGINX product lines cater to diverse customer needs, from legacy infrastructure to modern microservices architectures. F5’s acquisition of Shape Security (2020) bolstered its fraud prevention capabilities, while its Silverline services provide managed security offerings. Competitively, F5 faces pressure from cloud-native players like Cloudflare and legacy vendors such as Citrix. Its strength lies in deep application-layer expertise and high-performance hardware, but it must accelerate software and SaaS transitions to keep pace with rivals. Partnerships with AWS, Azure, and GCP enhance its multi-cloud relevance, though reliance on hardware sales (~30% of revenue) remains a vulnerability. The company’s focus on security (e.g., DDoS protection, WAF) aligns with enterprise priorities, but it lacks the breadth of end-to-end platforms like Palo Alto Networks. F5’s challenge is balancing innovation with profitability as it pivots toward subscription models.