| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 32.16 | 430 |
| Intrinsic value (DCF) | 3.40 | -44 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 3.02 | -50 |
N-able, Inc. (NYSE: NABL) is a leading provider of cloud-based software solutions tailored for managed service providers (MSPs) globally. Headquartered in Burlington, Massachusetts, N-able empowers MSPs to drive digital transformation and growth for small and medium-sized enterprises (SMEs) through its comprehensive, enterprise-grade platform. The company’s solutions span remote monitoring and management, security and data protection, and business management tools, including professional services automation and analytics. Founded in 2000, N-able has established itself as a critical enabler for MSPs, offering scalable, integrated software that enhances operational efficiency and cybersecurity. Operating in the high-growth IT services sector, N-able benefits from increasing demand for cloud-based MSP solutions amid rising cybersecurity threats and SME digitalization trends. With a strong presence in the U.S. and U.K., N-able is well-positioned to capitalize on the expanding global MSP market.
N-able presents a compelling investment opportunity due to its strong positioning in the growing MSP software market, recurring revenue model, and scalable platform. The company’s focus on cybersecurity and automation aligns with industry tailwinds, including heightened demand for remote IT management and data protection. However, risks include competition from larger players, potential margin pressures from R&D investments, and exposure to macroeconomic fluctuations affecting SME spending. With a market cap of ~$1.46B, modest net income ($30.96M in FY 2023), and no debt burden (total debt of $369M vs. $85.2M cash), N-able’s valuation reflects its growth potential but warrants monitoring of execution and competitive dynamics.
N-able competes in the crowded MSP software market, differentiating itself through a unified platform that combines remote monitoring, security, and business management tools. Its competitive advantage lies in its deep MSP focus, enabling tailored workflows and scalability for partners. Unlike broader IT service providers, N-able’s specialization fosters strong customer loyalty and sticky relationships. However, it faces intense competition from larger players like ConnectWise and Kaseya, which offer similar suites with greater resources for innovation and M&A. N-able’s cloud-native architecture and emphasis on cybersecurity (e.g., patch management, endpoint security) resonate with MSPs prioritizing compliance and threat mitigation. Its challenge is to maintain differentiation as competitors consolidate and expand capabilities. The company’s asset-light model and recurring revenue (typical of SaaS) provide stability, but its mid-market focus exposes it to pricing pressure from low-cost entrants. Strategic partnerships and integrations (e.g., with Microsoft Azure) could further solidify its positioning.