Valuation method | Value, $ | Upside, % |
---|---|---|
Artificial intelligence (AI) | 51.79 | 73 |
Intrinsic value (DCF) | 27.62 | -8 |
Graham-Dodd Method | n/a | |
Graham Formula | n/a |
Tenable Holdings, Inc. (NASDAQ: TENB) is a leading provider of cyber exposure solutions, helping organizations manage and mitigate cybersecurity risks across traditional and modern attack surfaces. Headquartered in Columbia, Maryland, Tenable offers a comprehensive suite of products, including Tenable.io (a cloud-based SaaS platform), Tenable.cs (cloud-native security), Tenable.ep (unified risk prioritization), and specialized solutions like Tenable.ad (Active Directory security) and Tenable.ot (operational technology protection). The company serves a global clientele across the Americas, EMEA, and APAC regions. Operating in the fast-growing cybersecurity sector, Tenable addresses critical vulnerabilities in IT, cloud, web applications, and industrial networks. With cyber threats escalating, Tenable's risk-based approach positions it as a key player in the $200B+ cybersecurity market. The company's Nessus Professional and Essentials tools remain industry standards for vulnerability assessment, reinforcing its reputation in enterprise security.
Tenable presents a compelling growth opportunity in the expanding cybersecurity market, with a diversified product portfolio addressing cloud, IT, OT, and Active Directory security. The company's SaaS-based model (Tenable.io) drives recurring revenue, evidenced by $900M in FY revenue and strong operating cash flow of $217M. However, profitability remains a challenge, with a net loss of $36M in FY2024. Tenable's moderate beta (0.83) suggests lower volatility than the broader tech sector, but competition from established players and high R&D demands pose risks. The lack of dividends aligns with its growth-focused strategy. Investors should weigh its 12% revenue growth potential against gross margins (~80%) and customer retention metrics in a crowded market.
Tenable competes in the vulnerability management and cyber exposure assessment segment, differentiating through its unified platform (Tenable.ep) that bridges IT, cloud, and OT security—a key advantage in hybrid environments. Its Nessus brand retains strong mindshare among security professionals, providing a foothold for upselling enterprise solutions. Tenable's focus on risk prioritization (beyond just vulnerability scanning) addresses a critical pain point in enterprise security programs. However, it faces intense competition from broader platform vendors like Palo Alto Networks (extended detection and response capabilities) and niche players like Rapid7 (emphasizing attacker-centric analytics). Tenable's cloud-native offerings (Tenable.cs) compete with pure-play CSPM vendors but benefit from integration with its broader suite. The company's OT security (Tenable.ot) competes with industrial-focused players like Nozomi Networks, while its Active Directory solution (Tenable.ad) contends with specialized tools like Semperis. Tenable's challenge lies in maintaining technical differentiation while expanding its enterprise footprint against better-capitalized rivals.