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Quote this valuation with its source: Fair value, Potential value and the price at analysis.
FAQ
ESTC — frequently asked questions
Is Elastic N.V. overvalued?
In our latest published analysis dated 2026-10-22, ESTC looks meaningfully overvalued. The price recorded at analysis is 98,8 USD versus our fair value of 79,9 USD; the high endpoint is presented separately as potential value of 93,3 USD. That implies roughly 19.1% downside to fair value at that date.
Our latest published report, analyzed 2026-10-22, gives ESTC a fair value of 79,9 USD and a potential value of 93,3 USD. The conclusion is triangulated across multiple valuation models and weighted by reliability for Elastic N.V.'s archetype; it is a dated research output, not a live price.
Should I buy ESTC now?
Our latest published rating for ESTC, analyzed 2026-10-22, is Reduce. Elastic N.V. looks meaningfully overvalued at the analysis-date price of 98,8 USD versus fair value of 79,9 USD; potential value is 93,3 USD. This is research for educational purposes, not personalized investment advice.
What are the biggest risks for ESTC?
The dedicated bear-case section in our report analyzed 2026-10-22 documents Elastic N.V.'s material risks, evidence, thresholds, and thesis-invalidation conditions. Scenario-specific explanations remain in that section so the report does not repeat or decontextualize them elsewhere.
What is ESTC's rating?
Our latest published rating for ESTC, analyzed 2026-10-22, is Reduce, with a published moat assessment of 7.5/10 (Narrow). It reflects our fair value of 79,9 USD, the potential value of 93,3 USD, and the price recorded at analysis (98,8 USD).
Báo cáo này chưa được dịch. Hãy làm mới sau vài phút khi hàng đợi dịch xử lý xong.
§1 Tóm tắt điều hànhEN
Câu trả lời trong 30 giâyReduce
Giá so với giá trị
Giá
$98.81
Giá trị hợp lý
$79.91
Giá trị tiềm năng
$93.33
Tính đến
2026-10-21
Vì sao luận điểm có thể đúng
Accelerating enterprise adoption of generative AI retrieval-augmented generation and autonomous agentic applications driving rapid expansion within Elastic's large enterprise customer cohort, yielding sustained sales-led subscription growth and faster non-GAAP operating margin expansion.
Điều gì sẽ thay đổi quan điểm của chúng tôi
Deceleration of sales-led subscription revenue growth below 10% YoY, driven by enterprise cloud consumption optimization and delayed generative AI production deployments.
Elastic N.V. (ESTC) is rated Reduce with a Fair value of $79.91 per share, indicating that pricing at $98.81 reflects -19.1% upside despite solid Q1 operational execution.
Elastic N.V. delivered a constructive start to fiscal 2027, generating first-quarter revenue of $478.11M (+15% YoY) and sales-led subscription revenue of $398.53M (+18% YoY, +17% constant currency). Non-GAAP operating margin reached 16.2%, surpassing prior quarterly guidance, while current remaining performance obligations (cRPO) increased 21% YoY to $1.15B. Management guided full-year FY2027 revenue to $2.00B-$2.01B (+15.2%-15.3% YoY) and non-GAAP operating margin to approximately 19.4%.
Despite these operational achievements, current market valuation at $98.81 per share reflects an elevated forward P/E multiple of 27.4x and sits 23.65% above the house fair value of $79.91 (implied return of -19.13%). Market consensus 12-month forward price targets average $111.52 (discounted present-value equivalent of $101.56 at house Ke of 9.8002%), reflecting aggressive assumptions regarding generative AI monetization that discount ongoing execution and dilution risks.2,3
Underlying financial quality highlights persistent headwinds: GAAP operations recorded a -$23.57M loss in Q1 FY2027 and -$33.48M in FY2026, while stock-based compensation totaled $298.44M in FY2026, equivalent to 17.16% of total revenue. With computed WACC at 10.0614% and hyperscaler competition constraining terminal pricing power, the risk/reward skew supports reducing portfolio exposure.2,3,6
Switching Costs and Embedded Infrastructure Data Pipelines
Elastic counts over 1,800 customers contributing >$100K in ACV as of Q1 FY2027, adding a record 80 large customers sequentially. Elasticsearch indices, log ingestion pipelines, and search architectures become critical operational plumbing that enterprises cannot easily displace without substantial engineering disruption and operational risk.4
Developer Ecosystem and Unified Multi-Solution Platform Breadth
Elastic delivers unified capabilities across Search, Observability, and Security on a unified underlying data platform, incorporating native vector database indexing, Columnar Mode, and OpenSearch compatibility. This broad developer ecosystem integration enables enterprises to anchor retrieval-augmented generation without deploying multiple disparate search point solutions.4
Cycle upside
A favorable industry expansion cycle is characterized by accelerating enterprise spending on generative AI infrastructure, widespread enterprise deployment of retrieval-augmented generation (RAG) applications requiring vector databases, and consolidation of observability and security point solutions onto unified data platforms.
Khuyến nghị của hãng
Reduce. While Elastic's product portfolio is strategically well-positioned in search AI and observability, the stock trades at a 23.65% premium over its intrinsic fair value of $79.91, leaving prospective investors vulnerable to multiple compression and consumption deceleration.
Tổng quan công ty
Elastic N.V. is a data platform company specializing in enterprise search, observability, and security solutions built upon the Elasticsearch platform. The company provides tools that allow organizations to ingest, store, search, and analyze structured and unstructured data in real time, serving as foundational architecture for log analytics, site reliability engineering, and security operations.
Elastic offers its solutions through fully managed cloud deployments (Elastic Cloud) across major public cloud providers as well as customer-managed and hybrid software subscriptions. In FY2026, subscription revenue represented $1,634.46M out of $1,739.33M in total revenue, with customers spanning Fortune 500 enterprises and global mid-market organizations.
§2 Kịch bản tiêu cựcEN
Under a macro stress scenario characterized by enterprise IT budget freezes, customer cloud consumption optimization, and intensified pricing competition from hyperscalers, Elastic's sales-led subscription growth could slow below 10% YoY. Because non-GAAP profitability relies on scaling revenue against sales force expansion and fixed hosting overhead, margin compression below 16% would coincide with higher equity risk premia. Under these combined pressures, cash flow compounding would decelerate significantly, invalidating market expectations of elevated operating leverage.
Operating margins compressed significantly due to cloud hosting infrastructure costs and hiring friction
Enterprise cloud optimization intensifies, curbing usage of Monthly and Annual Elastic Cloud. Hyperscalers bundle competing search and logging features, forcing Elastic into aggressive pricing concessions. Sales capacity hiring fails to generate expected productivity, compressing operating margins and triggering multiple contraction.
Các cách luận điểm này có thể đổ vỡ
Severe Enterprise IT Spending Retrenchment and Cloud Consumption Deceleration
Management targets medium-term sales-led subscription growth of 20%+ and guided FY2027 sales-led growth to 17.4%-17.5%. If cloud consumption optimization drives sales-led growth below 10%, top-line compounding breaks down with an estimated -26.5% fair value impact.4
FV impact
-2.3%
Revenue and EPS growth 5 points lower for five years
Deceleration indicates enterprise IT budget tightening, cloud consumption optimization, or slower conversion of generative AI pilots into production spend.
Hiện tại:18% YoY in Q1 FY2027 (17% constant currency)
Elastic N.V. maintains a Narrow economic moat grounded in high switching costs and the platform breadth of its Elasticsearch data tier. Originally developed around Apache Lucene, Elasticsearch has become the de facto standard for distributed search and log analytics in global enterprises. Once embedded into application backends, customer security operations centers, and site-reliability monitoring environments, replacing the indexing pipelines and query APIs involves substantial engineering risk and expense. This architectural lock-in is reflected in a steady Net Expansion Rate of approximately 111% and record quarterly additions to the >$100K customer cohort.
The company has leveraged its core search technology to establish prominent footprints in Observability and Security, positioning itself as a unified context provider for enterprise generative AI and retrieval-augmented generation (RAG). Innovations such as automated DiskBBQ calibration, native vector database indexing, and Prometheus compatibility strengthen customer retention across hybrid cloud architectures.
Nevertheless, Elastic's economic moat remains restricted to Narrow rather than Wide due to persistent competitive tension. Public cloud hyperscalers offer competing managed search and log services, while dedicated competitors in observability and security challenge Elastic's cross-sell expansion. Furthermore, significant ongoing equity dilution from stock-based compensation continues to dampen true economic value creation on a GAAP basis.
Lợi nhuận kinh tế
Elastic's GAAP operations generated -$33.48M in operating income in FY2026, lagging its computed WACC of 10.0614%. While non-GAAP operating margin expanded to 16.2% in Q1 FY2027 with full-year guidance at ~19.4%, substantial annual stock-based compensation ($298.44M in FY2026) continues to dilute GAAP economic returns.2,3,4,6
7.5/ 10
Narrow
Sources of advantage
01Switching Costs and Embedded Infrastructure Data Pipelines — Elastic counts over 1,800 customers contributing >$100K in ACV as of Q1 FY2027, adding a record 80 large customers sequentially. Elasticsearch indices, log ingestion pipelines, and search architectures become critical operational plumbing that enterprises cannot easily displace without substantial engineering disruption and operational risk.Moderate
02Developer Ecosystem and Unified Multi-Solution Platform Breadth — Elastic delivers unified capabilities across Search, Observability, and Security on a unified underlying data platform, incorporating native vector database indexing, Columnar Mode, and OpenSearch compatibility. This broad developer ecosystem integration enables enterprises to anchor retrieval-augmented generation without deploying multiple disparate search point solutions.Moderate
Mối đe dọa đã biết với lợi thế cạnh tranh
Mối đe dọa
Mức độ
Mốc thời gian
Giảm thiểu
Hyperscaler Managed Search Services and Open-Source Fork Bundling
medium
12-24 months
Elastic continuously innovates proprietary functionality unavailable in forks, such as Columnar Mode, Auto Calibration for DiskBBQ, native AI model integrations, and managed serverless Elastic Cloud deployment.
Aggressive Expansion by Dedicated Observability and SIEM Platforms
The highlighted cell is Fair value when every assumption sits at its base level ($79.91). Each row and column shows what Fair value becomes when one assumption moves.
Revenue growth scaling from 15.29% in FY2027 to 10.50% in FY2031
Non-GAAP expanding from 19.4% in FY2027 to 24.5% in FY2031
§7 Cây quyết định lợi nhuậnEN
Vượt
Upgrade the rating; Pause active trimming; evaluate whether subscription acceleration and gross margin expansion reflect durable competitive share gains before adjusting portfolio weights.
Kích hoạt: Q2 FY2027 revenue and non-GAAP EPS exceeding the top end of guidance ranges, accompanied by full-year sales-led subscription growth guidance being raised.
Demonstrates that enterprise AI workload monetization and sales capacity additions are exceeding base-case compounding expectations.
Đúng kỳ vọng
Maintain Reduce; Maintain defensive stance; continue reallocating capital away from premium-valued holdings toward positions offering positive margins of safety.
Kích hoạt: Q2 FY2027 revenue within $486M-$487M and non-GAAP EPS within $0.80-$0.82.4
Solid execution confirms base-case compounding but fails to justify the valuation premium of $98.81 over $79.91.
Hụt
Downgrade the rating; Accelerate capital exit; eliminate remaining exposure as valuation multiples face contraction from slowing consumption and margin slippage.
Validates core kill scenarios regarding cloud consumption deceleration and sales force productivity friction.
Chất lượng lợi nhuận
Reported earnings quality reflects a significant structural divergence between non-GAAP operational measures and GAAP performance. In Q1 FY2027, Elastic reported non-GAAP net income of $73.55M ($0.70 diluted EPS) alongside non-GAAP operating income of $77.26M (16.2% margin). However, GAAP net loss was -$16.73M (-$0.16 per share) and GAAP operating loss was -$23.57M (-4.9% margin). The reconciliation is heavily driven by $77.55M in stock-based compensation and employer taxes plus $19.92M in restructuring charges. In FY2026, stock-based compensation totaled $298.44M, consuming 17.16% of total revenue. While adjusted free cash flow reached $143.27M in Q1 FY2027, cash flow sustainability remains subsidized by substantial equity-based compensation add-backs.
Xu hướng dự báo
Consensus estimate momentum has been positive following the Q1 FY2027 beat. Post-earnings revisions indicate FY2027 consensus EPS rose 3.56% from $3.24 to $3.36, while FY2028 consensus EPS increased 2.05% from $3.88 to $3.96. Annual revenue consensus expectations moved up 0.52% for FY2027 to $2,005.29M and 0.74% for FY2028 to $2,300.10M. While revisions confirm operational stability, they remain modest and insufficient to bridge the current valuation gap.1
Cash flow performance displays apparent strength that is heavily influenced by stock-based compensation accounting. In FY2026, operating cash flow reached $326.89M and free cash flow was $321.80M after minimal capex of $5.09M. In Q1 FY2027, operating cash flow was $132.00M and adjusted free cash flow was $143.27M (30% adjusted FCF margin). Management guided full-year FY2027 adjusted free cash flow margin to approximately 21.5%. However, cash flow from operations is heavily augmented by non-cash stock compensation add-backs ($74.78M in Q1 FY2027 and $298.44M in FY2026). Excluding stock-based compensation, true structural free cash flow would be substantially lower.3
Elastic's historical GAAP operating margins have improved from -53.5% in FY2017 and -10.25% in FY2024 to -1.92% in FY2026. In Q1 FY2027, non-GAAP operating margin expanded to 16.2%, with full-year guidance targeting ~19.4% and scaling toward 24.5% by FY2031. This trajectory demonstrates positive operating leverage as sales capacity matures.
On a GAAP basis, ROIC remains below the company's computed WACC of 10.0614% and cost of equity of 9.8002%, due to ongoing GAAP operating losses (-$23.57M in Q1 FY2027). Cash returns exceed cost of capital, but only because substantial employee compensation is paid via equity rather than cash.
Substantial Divergence Between Operating Cash Flow and GAAP Operating Profits
Doanh thu mới nhất1,7 T US$CAGR doanh thu +39,3%
Biên hoạt động-1,9%10 kỳ tài chính
Dòng tiền tự do mới nhất321,8 Tr US$FY2026
Tiền mặt ròng799,4 Tr US$FY2026
Phân tích báo cáo kết quả kinh doanhQuy mô kinh doanh chuyển thành lợi nhuận báo cáo như thế nào.
Doanh thu1,7 T US$Giá vốn doanh thu−416,3 Tr US$Lợi nhuận gộp1,3 T US$Chi phí hoạt động−1,4 T US$Lợi nhuận hoạt động-33,5 Tr US$Các khoản ngoài hoạt động và thuế+401,2 Tr US$Lợi nhuận ròng367,8 Tr US$
Dữ liệu lịch sử tài chính
Doanh thu
1.739.331.000 US$
Giá vốn doanh thu
416.272.000 US$
Lợi nhuận gộp
1.323.059.000 US$
Chi phí hoạt động
1.356.535.000 US$
Lợi nhuận hoạt động
-33.476.000 US$
Các khoản ngoài hoạt động và thuế
401.242.000 US$
Lợi nhuận ròng
367.766.000 US$
Tổng quan bảng cân đối kế toánCách tài sản đã báo cáo được nắm giữ và tài trợ trong kỳ đã chọn.
StockMarketAgent.AI
Cơ cấu tài sảnNguồn tài trợ
Tổng tài sản3,2 T US$Tiền mặt768,7 Tr US$Tài sản ngắn hạn2 T US$Tổng nợ phải trả1,9 T US$Nợ ngắn hạn1,2 T US$Vốn chủ sở hữu1,3 T US$
Dữ liệu phân tích bảng cân đối kế toán
Tổng tài sản
3.152.676.000 US$
Tiền mặt
768.725.000 US$
Tài sản ngắn hạn
2.023.263.000 US$
Tổng nợ phải trả
1.876.176.000 US$
Nợ ngắn hạn
1.204.921.000 US$
Vốn chủ sở hữu
1.276.500.000 US$
Cầu nối dòng tiềnDòng tiền từ hoạt động chuyển thành dòng tiền tự do như thế nào trong FY2026.
StockMarketAgent.AI
Đối chiếu dòng tiền hoạt động
Lợi nhuận ròng367,8 Tr US$Khấu hao và phân bổ+11,8 Tr US$Thù lao bằng cổ phiếu+298,4 Tr US$Điều chỉnh hoạt động khác−351,1 Tr US$Dòng tiền hoạt động326,9 Tr US$
Đối chiếu tiền đầu kỳ đến cuối kỳ
Tiền đầu kỳ731,2 Tr US$Dòng tiền hoạt động+326,9 Tr US$Dòng tiền đầu tư+26,1 Tr US$Dòng tiền tài chính−312,3 Tr US$Ảnh hưởng tỷ giá−1,4 Tr US$Tiền cuối kỳ770,5 Tr US$
326,9 Tr US$ − 5,1 Tr US$Dòng tiền tự do 321,8 Tr US$
Dữ liệu cầu nối dòng tiền
Lợi nhuận ròng
367.766.000 US$
Dòng tiền vào từ hoạt động
678.035.000 US$
Khấu hao và phân bổ
11.834.000 US$
Thù lao bằng cổ phiếu
298.435.000 US$
Dòng tiền hoạt động
326.894.000 US$
Dòng tiền ra từ hoạt động
351.141.000 US$
Tiền sẵn có
1.084.179.000 US$
Tiền đầu kỳ
731.214.000 US$
Dòng tiền vào từ đầu tư
26.071.000 US$
Dòng tiền ra từ tài chính
312.269.000 US$
Ảnh hưởng tỷ giá
1.412.000 US$
Tiền cuối kỳ
770.498.000 US$
Dòng tiền đầu tư
26.071.000 US$
Dòng tiền tài chính
-312.269.000 US$
Doanh thu theo khu vựcTỷ trọng trong tổng doanh thu của 2026-04-30.
1,7 T US$Tổng doanh thu
Doanh thu theo khu vựcTỷ trọng
United States947,3 Tr US$54,5%+13,3% so với cùng kỳ
Non Us792 Tr US$45,5%+22,4% so với cùng kỳ
Nguồn: SEC EDGAR · Nộp ngày 2026-06-08 · SEC EDGAR
Dữ liệu cơ cấu doanh thu: Doanh thu theo khu vực
Doanh thu theo khu vực
Doanh thu
Tỷ trọng
so với cùng kỳ
United States
947,3 Tr US$
54,5%
13,3%
Non Us
792 Tr US$
45,5%
22,4%
Doanh thu và lợi nhuậnQuy mô kinh doanh chuyển thành lợi nhuận báo cáo như thế nào.
Tiền mặt và nợThanh khoản sẵn có so với tổng dư nợ.
Tạo dòng tiềnDòng tiền hoạt động so với dòng tiền tự do.
Khả năng sinh lờiDiễn biến biên gộp, biên hoạt động và biên ròng.
Dữ liệu tài chính tại thời điểm được dùng trong phân tích ngày 2026-10-22.
Dữ liệu lịch sử tài chính
Kỳ
Doanh thu
EBITDA
Lợi nhuận ròng
Dòng tiền hoạt động
Dòng tiền tự do
Capex
Khấu hao và phân bổ
Thù lao bằng cổ phiếu
Mua lại cổ phiếu
Cổ tức đã trả
Phát hành nợ ròng
Dòng tiền đầu tư
Dòng tiền tài chính
Tiền đầu kỳ
Tiền cuối kỳ
Tiền mặt và đầu tư
Tổng nợ
Biên hoạt động
ROIC
WACC
Chênh lệch ROIC−WACC
2017-04-30
88,2 Tr US$
-44 Tr US$
-52 Tr US$
-16,1 Tr US$
-17 Tr US$
843 N US$
3,2 Tr US$
18,9 Tr US$
25 N US$
—
—
-20,3 Tr US$
59,8 Tr US$
—
59,6 Tr US$
74,6 Tr US$
—
-53,5%
—
—
—
2018-04-30
159,9 Tr US$
-42,9 Tr US$
-52,7 Tr US$
-20,8 Tr US$
-23,8 Tr US$
3 Tr US$
5,1 Tr US$
12,7 Tr US$
344 N US$
—
—
8,3 Tr US$
3,4 Tr US$
59,6 Tr US$
50,9 Tr US$
51,5 Tr US$
—
-30,0%
—
—
—
2019-04-30
271,7 Tr US$
-95,7 Tr US$
-102,3 Tr US$
-23,9 Tr US$
-27,4 Tr US$
3,4 Tr US$
5,7 Tr US$
39,9 Tr US$
0 US$
500 N US$
—
-8,3 Tr US$
281,8 Tr US$
50,9 Tr US$
298 Tr US$
299,3 Tr US$
90 N US$
-37,3%
—
7,2%
—
2020-04-30
427,6 Tr US$
-156,3 Tr US$
-167,2 Tr US$
-30,6 Tr US$
-35,6 Tr US$
5,1 Tr US$
12,9 Tr US$
60 Tr US$
0 US$
58,6 Tr US$
—
-29,2 Tr US$
58,5 Tr US$
298 Tr US$
297,1 Tr US$
298,9 Tr US$
35,5 Tr US$
-40,0%
—
5,3%
—
2021-04-30
608,5 Tr US$
-104,3 Tr US$
-129,4 Tr US$
22,5 Tr US$
18,6 Tr US$
3,9 Tr US$
17,2 Tr US$
2,5 Tr US$
—
—
—
-1,5 Tr US$
77,3 Tr US$
297,1 Tr US$
403,7 Tr US$
400,8 Tr US$
0 US$
-21,3%
—
7,3%
—
2022-04-30
862,4 Tr US$
-157,3 Tr US$
-203,8 Tr US$
5,7 Tr US$
3,2 Tr US$
2,5 Tr US$
19,7 Tr US$
2,5 Tr US$
—
—
575 Tr US$
-127,3 Tr US$
602,1 Tr US$
403,7 Tr US$
863,6 Tr US$
860,9 Tr US$
566,5 Tr US$
-20,1%
—
8,9%
—
2023-04-30
1,1 T US$
-171,5 Tr US$
-236,2 Tr US$
35,7 Tr US$
33 Tr US$
2,7 Tr US$
20,2 Tr US$
204 Tr US$
—
—
0 US$
-273 Tr US$
17,5 Tr US$
863,6 Tr US$
646,6 Tr US$
915,2 Tr US$
567,5 Tr US$
-20,5%
—
9,0%
—
2024-04-30
1,3 T US$
-78,6 Tr US$
61,7 Tr US$
148,8 Tr US$
145,3 Tr US$
3,5 Tr US$
18 Tr US$
239,1 Tr US$
0 US$
—
0 US$
-288 Tr US$
40,1 Tr US$
646,6 Tr US$
543,1 Tr US$
1,1 T US$
568,6 Tr US$
-10,3%
—
10,5%
—
2025-04-30
1,5 T US$
6,1 Tr US$
-108,1 Tr US$
266,2 Tr US$
261,8 Tr US$
4,3 Tr US$
12,3 Tr US$
257,8 Tr US$
0 US$
—
—
-118,7 Tr US$
40,9 Tr US$
543,1 Tr US$
731,2 Tr US$
1,4 T US$
569,7 Tr US$
-3,7%
—
10,7%
—
2026-04-30
1,7 T US$
34,7 Tr US$
367,8 Tr US$
326,9 Tr US$
321,8 Tr US$
5,1 Tr US$
11,8 Tr US$
298,4 Tr US$
340,1 Tr US$
—
—
26,1 Tr US$
-312,3 Tr US$
731,2 Tr US$
770,5 Tr US$
1,4 T US$
570,9 Tr US$
-1,9%
—
—
—
§9 So sánh định giá với các doanh nghiệp cùng ngành
Giá trị hợp lýReport-date price
Elastic N.V.ESTC
Giá / giá trị hợp lý
Giá trị hợp lý79,91 US$Report-date price98,81 US$
Ngày đánh giá
Hào kinh tếNarrow
Bảng điểm đầu tư63 / 100
Paycom Software, Inc.PAYC
Giá / giá trị hợp lý
Giá trị hợp lý259,38 US$Report-date price239 US$
Ngày đánh giá
Hào kinh tếNarrow
Bảng điểm đầu tư68 / 100
Tyler Technologies, Inc.TYL
Giá / giá trị hợp lý
Giá trị hợp lý323,81 US$Report-date price339,87 US$
Elastic N.V. (ESTC) trades at 27.4x forward earnings against a peer median of 20.2x. Its EV/EBITDA of -427.0x compares with a peer median of 17.7x. The comparison uses 4 peers: Paycom Software, Inc., Tyler Technologies Inc., Fair Isaac Corporation and PTC Inc., as of 2026-10-21.
§10 Ngành và chu kỳEN
Pha chu kỳ
Expansion
The broader systems software industry exhibits significant capital expenditure, with peer benchmark industry capex-to-revenue at 17.8% (0.178) and industry capex-to-depreciation at 2.45. Elastic operates an asset-light software business model with minimal direct capital expenditures ($5.09M in FY2026 and $0.59M in Q1 FY2027), relying on public cloud infrastructure providers (AWS, Azure, Google Cloud) to supply physical data center capacity. Broad capacity, lead-time, and customer-concentration evidence across the industry is limited; therefore, the cycle view is demand-led and evidence-limited.6
Chu kỳ tăng giá
A favorable industry expansion cycle is characterized by accelerating enterprise spending on generative AI infrastructure, widespread enterprise deployment of retrieval-augmented generation (RAG) applications requiring vector databases, and consolidation of observability and security point solutions onto unified data platforms.
Chu kỳ giảm giá
A downcycle or decelerating phase would be triggered by enterprise IT budget retrenchment, enterprise cloud consumption optimization, delayed migration of self-managed workloads to Elastic Cloud, and intensified price discounting by hyperscalers offering managed search alternatives.
Xu hướng dài hạn
Xu hướng
Tác động
Ghi chú
Generative AI and Retrieval-Augmented Generation (RAG) Adoption
positive
Enterprises are deploying generative AI models and autonomous agents that require real-time, governed enterprise data context. Elastic's vector search engine, hybrid search, and Auto Calibration for DiskBBQ position Elasticsearch as a primary retrieval layer for enterprise RAG applications.
Platform Consolidation in Observability and Security Operations
neutral
Chief Information Officers are actively consolidating disparate point monitoring, tracing, and security tools onto unified data platforms to eliminate data silos and reduce licensing fees. Elastic's unified platform benefits from this trend but faces intense competition from established observability and SIEM leaders.
Định vị
Elastic is well-positioned within search-powered observability and generative AI retrieval context, leveraging deep open-source developer roots. However, its profitability trajectory lags established software peers: Elastic's GAAP operating margin was -1.92% in FY2026 and non-GAAP operating margin was 16.2% in Q1 FY2027, compared to peer operating margins of 53.79% at FICO, 31.72% at PAYC, and 28.23% at PTC. Elastic must continue executing on guided operating leverage toward 19.4% in FY2027 to narrow this gap.4
§11 Quản lý vị thếEN
Quy mô vị thế
0%
Given the Reduce rating and the stock's current 23.65% premium to house fair value ($79.91 mid vs $98.81 market price), portfolio exposure should be minimized to protect capital.3
Rủi ro
Institutional risk guidelines require maintaining strict underweight limits on high-multiple growth software holdings where valuation exceeds fair value bands. Total portfolio allocation should remain zero until the price enters a verifiable margin-of-safety band below $63.93. Factor risks including interest rate sensitivity and cloud consumption volatility must be actively monitored.
Đợt vào lệnh
Mức
Hành động
Lý do
$98.81
Trim / Reduce existing holdings
Shares trade 23.65% above house fair value ($79.91) and above the upper bound of the fair value range ($93.33), providing negative expected return.
Below $63.93
Re-evaluate valuation assumptions
Đợt thoát lệnh
Mức
Hành động
$93.33
Execute final liquidation of residual trading exposure
$98.81
Systematically trim institutional allocation to target underweight
Điểm kiểm tra hàng quý
Chỉ số
Ngưỡng
Hành động
Sales-Led Subscription Growth Rate
Growth decelerating below guidance targets YoY in Q2 FY2027
Accelerate position exit; downgrade terminal sales-led growth assumptions.
Institutional risk/reward parameters do not support capital allocation at $98.81, where shares trade at a 23.65% premium to Fair value of $79.91.
Tactical / Momentum
Hold
Near-term estimate revisions are positive following the Q1 FY2027 earnings beat, but stretched forward multiples limit further multiple expansion.
Long-Term Compounder
Avoid
While Elastic's technology in search AI and observability is sound, high ongoing equity dilution ($298.44M in FY2026) and premium valuation argue for avoiding the shares.3,4
§14 Khuyến nghị cuối cùngEN
Hành động
Giảm
Elastic N.V. While the company delivered a solid start to fiscal 2027 with 18% sales-led subscription growth and expanding non-GAAP operating margins to 16.2%, the current share price trades at an excessive 23.65% premium over intrinsic value.3,4
At 27.4x forward earnings, market pricing discounts optimistic generative AI adoption scenarios while underestimating headwinds from hyperscaler competition, cloud consumption scrutiny, and annual stock-based compensationdilution of $298.44M. Capital preservation warrants reducing exposure.
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Sources
The records this analysis drew on, as they stood when it was run.
Analyst consensusData as of 2026-10-22 · Published 2026-10-22 · Provider-adjusted · cited for 4 figuresCited in Cây quyết định lợi nhuận
Not every cited input appears here: internal calculations and intermediate model outputs have no external record, and some citations could not be matched to one.
Current computed WACC is 10.0614% and moderate Ke is 9.8002%. A 200 bps increase in capital costs to 12.0% driven by persistent interest rates and wider equity risk premia impairs equity claims by an estimated -21.4%, exacerbated by annual SBC expense of $298.44M in FY2026.2,3
FV impact
-14.7%
Cost of capital 2 points higher
Trigger
Within 18 months
Gross Margin Compression from Hyperscaler Infrastructure Costs and Sales Inefficiency
Management guides FY2027 non-GAAP operating margin to approximately 19.4%, scaling toward 24.5% by FY2031. If public cloud hosting costs and sales rep hiring ramp friction depress operating margins below 16%, the operating leverage thesis is invalidated with an estimated -18.8% fair value impact.4
FV impact
0%
Operating margin 3 points lower throughout
Trigger
Within 12 months
Failure to expand operating margin above 16.0% indicates that sales rep hiring ramp friction and public cloud hosting expenses are offsetting revenue scale benefits.
Hiện tại:16.2% in Q1 FY2027; guided to ~19.4% for FY2027
Erosion of customer net expansion demonstrates heightened churn or seat contraction under competitive pressure from native hyperscaler log search offerings and dedicated observability peers.
Hiện tại:Approximately 111% in Q1 FY2027
Cảnh báo nếu< 108%
05
Quarterly Net Additions of >$100K ACV Customers
A sharp drop in large-enterprise customer acquisition indicates saturation or sales execution bottlenecks in moving upmarket.
Hiện tại:80 net additions in Q1 FY2027 to reach over 1,800 customers
Cảnh báo nếu< 40 net additions per quarter
12-36 months
Expanding unified data collection, lowering metric ingestion footprint via Deductive AI integration, and consolidating log, trace, and metric storage onto a single tier.4
Elastic executes its guided operating plan, achieving mid-teens revenue growth in FY2027 and expanding non-GAAP operating margin to 19.4%. Long-term margins normalize toward 24.5% as sales capacity matures, yielding the house fair value of $79.91 per share.4
Elastic's capital allocation strategy prioritizes organic platform reinvestment, opportunistic share repurchases, and targeted technology acquisitions. The balance sheet carries $1.46B in total liquidity, consisting of $879.87M in cash and cash equivalents and $581.17M in marketable securities against $571.20M in long-term debt as of July 31, 2026. In October 2025, the board authorized a $500M share repurchase program, under which Elastic repurchased approximately 0.8M ordinary shares for $40.0M at an average price of $49.71 during Q1 FY2027. Capital allocation also included the strategic acquisition of Deductive AI to bolster observability metric investigation capabilities. While share repurchases provide partial offset to dilution, annual stock-based compensation of $298.44M in FY2026 continues to expand the diluted share count by 1.0%-1.6% annually.
Operating cash flow is heavily inflated by equity compensation add-backs, masking the true operational cost structure on a GAAP basis.
Contracted Revenue Predictability Driven by Subscription Mix and Expanding cRPO
FY2026 subscription revenue of $1,634.46M accounted for 94% of total revenue, and Q1 FY2027 cRPO rose 21% YoY to $1.15B.
High recurring subscription revenue and multi-year contract commitments provide top-line predictability even when consumption-based cloud usage fluctuates quarter-to-quarter.
Asset-Light Architecture Offloads Physical Capital Intensity to Cloud Hyperscalers
Direct capital expenditures were only $5.09M in FY2026 and $0.59M in Q1 FY2027, compared to the software peer benchmark capex-to-revenue ratio of 17.8%.
Minimal internal infrastructure capex allows free cash conversion to track operating cash flow, but shifts capital intensity to third-party public cloud hosting costs.
PTC Inc.PTC
Giá / giá trị hợp lý
Giá trị hợp lý150,71 US$Report-date price194,45 US$
Ngày đánh giá
Hào kinh tếWide
Bảng điểm đầu tư61 / 100
Biên
ESTC
Elastic N.V.
$10.4B
27.4x
5.8x
-427.0x
33.1%
—
PAYC
Paycom Software, Inc.
$11.8B
18.8x
5.5x
16.9x
41.1%
31.7%
TYL
Tyler Technologies Inc.
$15.4B
24.6x
6.4x
34.7x
9.7%
14.7%
FICO
Fair Isaac Corporation
$17.3B
16.2x
7.2x
17.9x
—
53.8%
PTC
PTC Inc.
$21.0B
21.7x
7.1x
17.4x
35.1%
28.2%
Enterprise Cloud Consumption Scrutiny and Cost Optimization
negative
Enterprises continue to audit public cloud consumption, optimize data ingestion volumes, and enforce strict log retention tiers, creating quarterly volatility in consumption-based cloud billing.