Understanding Newrelic Market Cap and Its Investment Attractiveness

Newrelic's market cap has been steadily growing, reaching a peak of $20 billion in 2021. This significant increase in value is a testament to the company's innovative approach to digital monitoring and analytics.

Newrelic's strong market position is due in part to its ability to offer a comprehensive platform for monitoring and analyzing application performance, which has helped it attract a large and loyal customer base. This base includes many well-known companies across various industries.

Newrelic's market cap is influenced by its strong revenue growth, which has averaged 30% annually over the past five years. This growth has been driven by increasing demand for digital monitoring and analytics solutions.

Newrelic's investment attractiveness is also influenced by its strong financials, including a net income margin of 20% and a debt-to-equity ratio of 0.1.

The New Relic market cap valuation ratios offer valuable insights into the company's financial health.

The forward PE ratio stands at 43.99, indicating a relatively high valuation compared to its peers.

A PS ratio of 6.32 suggests that investors are willing to pay a premium for the company's earnings.

The forward PS ratio of 5.60 is slightly lower than the current PS ratio, indicating a potential decrease in valuation expectations.

New Relic's PB ratio of 15.78 is higher than the industry average, indicating a premium valuation.

The P/FCF ratio of 78.67 and P/OCF ratio of 64.79 are significantly higher than the industry average, indicating a high valuation compared to cash flows.

The PEG ratio of 224.36 is unusually high, indicating that New Relic's earnings growth is not being reflected in its stock price.

Analysts are forecasting a price target of $85.36 for New Relic, which is a decrease of -1.87% from the current price.

The consensus rating from analysts is a "Hold", indicating a neutral outlook. This rating is based on the opinions of 14 analysts.

New Relic is expected to experience revenue growth of 17.51% over the next 5 years, which is a promising sign for the company's future prospects.

Here are the key analyst forecasts for New Relic's future performance: