Stock analysis · Bull Rankings model

SNOW analysis

Snowflake Inc.Software - Application. Scored on the same transparent model behind the daily rankings.

AI
SNOW
Snowflake Inc. · Software - Application
FCF$1.2bC+
Rev+31.1%A
D/E1.43C
P/S20.5xD
PEG6.89D
28.9Score
$298.10$103.3B
1Y Target$298.23Analyst consensus · 48 analysts
5Y Target$521.60Compound horizon
10Y Target$1,323Long-dated conviction
FCF$1.2bTTM
C+
FCF $1.2b — respectable but not differentiating
Rev+31.1%TTM YoY
A
Revenue +31.1% — hypergrowth, top decile
D/E1.43
C
D/E 1.43 — more levered than most Technology peers (≈90th pctile)
P/S20.5x
D
P/S 20.5x — most expensive decile in Technology (≈95th pctile)
PEG6.89
D
PEG 6.89 — very expensive; pricing in best-case scenarios

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 28.9
Quality0.29
Growth1.00
Value0.08
Why this score
  • Diluting shareholders
Entry · Margin of safety
52-week rangeNear 52-week high
0% off the 12-month high
vs DCF fair value384% aboveest. fair value ~$62
What the price assumes: free cash flow compounding at ~60% a year for the next decade — vs the ~25% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability40% · B+gross profit ÷ total assets (Novy-Marx)
ROIC-53.5% · Freturn on invested capital — not score-weighted
Why now
Software - Application · market cap $103.3b. Trading near 52-week high of $298.22 — momentum setup, limited technical margin of safety. Revenue growing +31% — in hypergrowth territory. 48 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $298.23 (implying +0% upside).
Moat
$103.3b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition. Software economics — recurring revenue, embedded customer workflows, and high gross margin all compound the moat once a base account is won. Switching costs are the lever.
Risk
Currently unprofitable (margin -23.7%) — path to GAAP profitability is the core thesis risk. Trading within 0% of the 52-week high — limited technical margin of safety; a momentum reversal would test conviction. P/S 20.5x embeds aggressive forward growth — disappointing top-line guidance would compress the multiple hard.
Horizon
1-3 yr $298.23 (48-analyst consensus) — catalyst-driven; binary events dominate. 5 yr $521.60 — requires the platform / technology to reach commercial scale. 10 yr $1,323 — return distribution heavily skewed.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Trend
-3.4 over 31 daily scores
From 32.3 (Jun 22) → 28.9 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Shares to buy
6
Position size
$1,789
3.6% of portfolio
Stop price
$223.58
25% below $298.10
$ at risk if stopped
$447.15
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Snowflake Inc. (SNOW): score, valuation & FAQ

Snowflake Inc. (SNOW) is a Software - Application company that scores 28.9 out of 100 on the Bull Rankings quality-growth model — a weak reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are Rev (A), while P/S (D) and PEG (D) rate weaker. On valuation, SNOW sits about 384% above our discounted-cash-flow fair value — the current price implies roughly 60% annual free-cash-flow growth over the next decade.

Is SNOW a good stock to buy?

Bull Rankings scores SNOW 28.9 out of 100 on its quality-growth model, which is a weak reading. That is driven by Rev (A). A score is a quantitative screen of Snowflake Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does SNOW score 28.9 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). SNOW earns its highest marks on Rev (A), and is held back by P/S (D) and PEG (D). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is SNOW overvalued or undervalued?

Based on $298.10, SNOW sits about 384% above our discounted-cash-flow fair value — the current price implies roughly 60% annual free-cash-flow growth over the next decade. Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in SNOW?

Currently unprofitable (margin -23.7%) — path to GAAP profitability is the core thesis risk. Trading within 0% of the 52-week high — limited technical margin of safety; a momentum reversal would test conviction. P/S 20.5x embeds aggressive forward growth — disappointing top-line guidance would compress the multiple hard.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.

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