Fastly Valuation

FSLY Stock  USD 24.58  0.36  1.49%   
Fastly is trading at $24.58, while our valuation model places fair value closer to $17.16 per share. On that basis, the stock looks overvalued. The estimate draws on Fastly fundamentals, including profit margin of -20%, shares outstanding of 151.8M, and current valuation of $3.8B, together with its technical indicators and probability of bankruptcy. The valuation case for Fastly is shaped mainly by:
 Price Book
4.0139
 Enterprise Value
3.8 B
 Enterprise Value Ebitda
-18.37
 Price Sales
5.9794
 Forward PE
87.7193
Overvalued
Today
24.58
Please note that Fastly's price fluctuation is Slightly Elevated at this time. Our intrinsic value estimate for Fastly Class A is anchored to a 3 months horizon. Increasing the horizon tends to sharpen the value estimate and improve the signal quality behind the methodology.
The quoted market value of Fastly Stock comes from active exchange trading between buyers and sellers. When market value drifts away from intrinsic value, investors may find an opportunity if that spread closes over time.
Historical Market  24.58 Real  17.16 Target  13.71 Hype  24.58 Naive  23.97
Estimating the real value of Fastly requires analyzing Fastly's future cash flows, earnings power, and asset base. Various approaches such as discounted cash flow, price-to-earnings, and price-to-book models can provide different perspectives on Fastly's intrinsic worth.
17.16
Real Value
27.16
Upside
Evaluating the potential upside and downside for Fastly Class A helps investors build a more complete risk picture. A purely fundamental view of Fastly stock may understate important market and technical factors.
Earnings
Estimates
LowProjectedHigh
-0.010.050.07
Details
Hype
Prediction
LowEstimatedHigh
14.5824.5834.58
Details
Naive
Forecast
LowNext ValueHigh
13.9723.9733.97
Details
Analyst
Consensus
LowTarget PriceHigh
12.4813.7115.22
Details
Valuing Fastly requires understanding both its financial fundamentals and how the market prices similar businesses. The gap between intrinsic and market value is where investment opportunities are found.

Main Profitability Drivers

Fastly's net margin stands at -19.50%, with operating margin at -8.74%. Below the operating line, items like interest and taxes compress Fastly's margin by about 10.76 percentage points. Revenue of 624.02 Million translated into 356.2 Million of gross profit for Fastly, with net income reaching -121.68 Million. Fastly's return on equity of -12.84% and return on assets of -5.02% gauge how effectively the company converts invested capital into earnings. Fastly faces challenges on the profitability front, with declining trends across multiple margin and return indicators. To dig further into these trends, see Fastly's detailed margin analysis to evaluate margin sustainability.
 Price Book
4.0139
 Gross Profit
356.2 M
 Price Sales
5.9794
 Profit Margin
-0.20
 Enterprise Value Revenue
6.089
At present, Cash is showing a moving upward trajectory relative to prior years. As of the last annual report, Cash was 180.56 Million. As of earlier this week, Accounts Payable is projected to grow to approximately 18.5 M, whereas Change To Account Receivables is moving lower toward about -6.5 M.

Fastly Cash

126.06 Million

Revenue by Product

Revenue for Fastly breaks down into 3 product-level segments. The largest contributor is Network Services at 130.84 Million (75.8% of revenue), with Security accounting for 35.4 Million (20.5%). A single segment driving over 60% of revenue suggests limited product diversification, which can amplify both upside and downside.

Total Value Analysis

The current total-value analysis for Fastly Class A points to enterprise value near 3.8 B, market capitalization around 3.73 B, debt of 430.19 M, and cash balances of 532.94 M. That snapshot should be treated as one valuation lens rather than as final proof of fair value because the interpretation can shift quickly when financing assumptions change.
  Takeover PriceMarket CapDebt ObligationsCash
3.8 B
3.73 B
430.19 M
532.94 M

Investor Information

About 79.0% of the company shares are owned by institutional investors. The book value of Fastly was currently reported as 6.13. The company recorded a loss per share of 0.83. Fastly Class A had not issued any dividends in recent years. Current financial indicators reflect structured asset utilization and capital deployment. Current profitability metrics are under pressure, reflecting a period of reduced earnings capacity. Earnings quality, debt coverage, and cash generation are the primary financial strength indicators for Fastly.

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Fastly has an asset utilization ratio of 41.62 percent. This suggests that the Company is making $0.42 for each dollar of assets. An increasing asset utilization means that Fastly Class A is more efficient with each dollar of assets it utilizes for everyday operations.
Macro event markers
 
Covid
 
Interest Hikes

Profitability Analysis

Based on the key profitability measurements obtained from Fastly's financial statements, Fastly Class A may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in April. Profitability indicators assess Fastly's ability to earn profits and add value for shareholders.
 
Net Loss  
 First Reported
2018-03-31
 Previous Quarter
-29.5 M
 Current Value
-15.5 M
 Quarterly Volatility
19.2 M
Macro event markers
 
Covid
 
Interest Hikes
As of earlier this week, Gross Profit Margin is projected to grow to 0.59, whereas Gross Profit is moving lower toward about 211.9 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.590.5708
Sufficiently Up
Slightly volatile
A meaningful profitability review of Fastly Class A should connect income generation with revenue scale, asset use, operating costs, and current equity structure. The practical goal is to decide whether profitability looks durable, improving, or increasingly difficult to defend under current conditions.

Earnings per Share Projection vs Actual

Fastly currently shows forward EPS consensus of 0.05, with dispersion from -0.01 to 0.07. EPS TTM stands at -0.83. EPS is most informative when read together with margin stability and cash-flow conversion. When reviewing projected earnings per share for Fastly Class A, investors should keep in mind that consensus EPS estimates can include assumptions that smooth non-recurring items and stock-compensation effects. Fastly is projected to generate 0.0467 in earnings per share on 30th of June 2026. Earnings forecast analysis also matters because changes in EPS expectations can influence both valuation work and near-term price reaction.
Macro event markers
 
Covid
 
Interest Hikes

Earnings Estimation Breakdown

The next forward EPS estimate for Fastly Class A stands at 0.0467 per the current analyst consensus. This projection range extends from a floor of -0.01 to a ceiling of 0.07, reflecting the analytical uncertainty embedded in Fastly's forward model. The 12-month calculation period and exclusion of non-recurring items ensure a consistent earnings baseline.
Last Reported EPS
0.0
-0.01
Lowest
Expected EPS
0.0467
0.07
Highest

Earnings Projection Consensus

The gap between Fastly's estimated intrinsic value and current market price is a high-level valuation diagnostic. Investors who find the estimate materially above the price may view this as a signal to investigate further. Those who find the price materially above the estimate should stress-test the earnings growth assumptions embedded in the current multiple.
Number of AnalystsHistorical AccuracyLast Reported EPSEstimated EPS for 30th of June 2026Current EPS (TTM)
1044.77%
0.0
0.0467
-0.83

Ownership Allocation

The majority of Fastly's outstanding shares are owned by institutional holders. High institutional ownership often reflects the stock's eligibility for passive index funds, which are required to hold positions proportional to index weights regardless of their own investment view. Active managers holding Fastly must also disclose positions above certain thresholds through SEC filings. The 79% institutional stake in Fastly compares to 7% held by insiders and 14% by retail investors.

Revenue and Profit Overview

The company reported previous year's revenue of 624.02 M. Net Loss for the year was -121.68 M with profit before overhead, payroll, taxes, and interest of 356.2 M.
Investors reviewing Fastly Class A usually get better results when valuation is approached as disciplined analysis instead of as one fixed number. This becomes more informative when investors compare operating progress, market capitalization, and expected business performance in the same review.

Valuation Framework, Methodology & Assumptions

Fastly is a large-cap equity in Internet Services & Infrastructure, Software - Application, Information Technology categories. Capital structure affects intrinsic modeling assumptions. Fastly currently trades at P/B of 4.01, P/S of 5.98, enterprise value of 3.8 B.

Unless otherwise specified, data for Fastly Class A is compiled from periodic company reporting and market reference feeds and standardized for comparability. Where analyst coverage exists, consensus estimates are factored in. Updates may occur throughout the day. Valuation outputs are model-derived and depend on published assumptions and reference inputs.

This content is curated and reviewed by:

Gabriel Shpitalnik - Member of Macroaxis Editorial Board
Last reviewed on March 7th, 2026

Fastly Growth Indicators

When investors treat Fastly Class A as a growth opportunity, they are usually paying for future execution rather than only for current fundamentals. This framework is most valuable when investors want to know whether the company can grow efficiently rather than simply grow quickly.
Common Stock Shares Outstanding146.9 M
Forward Price Earnings87.7193

Fastly Current Valuation Indicators

When investors evaluate Fastly's net worth, they are really testing whether the current market price is consistent with the economics of the underlying business. Current market capitalization is about 3.73 Billion, enterprise value is near 3.8 Billion, and annual revenue is around 624.02 Million.

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