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Rapid7, Inc (RPD) Fair Value & Analysis

Technology · US · Market cap $450M

RI Rapid7, Inc logo Rapid7, Inc RPD · US
Price$11.57
Fair Value$5.95
Upside-48.6%
Quality50/100
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Healthy Growth
Thin margins · 2.6% net margin
High debt · generates free cash flow
Trails peers (5/14)
Narrow moat 42/100
Evidence: High Range $4.46 – $7.43 Share as image

Fair value as of: Jul 19, 2026

From 22 valuation models · updated 22 days ago

Fair value updated Jul 19, 2026, revised from $6.95 to $5.95 (−14.4%) since Jun 24, 2026. Share price +0.8% over the past month.

A solid business, but screening 49% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case ($7.43). The favourable scenario is already priced in.
  • Solid but not exceptional quality (50/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

$140.13 $5.05 Fair Value $5.95 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.

How to read this chart

60‑month range $5.05 – $140.13 · fair‑value band $4.46 – $7.43 · the $11.57 price screens above the $5.95 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 19, 2026.

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Analysis

Rapid7, Inc (RPD) currently trades at $11.57, while our model-based Fair Value estimate is $5.95, implying the stock looks roughly 48.6% overvalued today. The Quality Score stands at 50/100 (solid quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Rapid7, Inc generated revenue of $859M at a net margin of 2.6%. Revenue declined 0.3% year over year. It earns a return on equity of 19.7%. Net debt stands at $782M. Fundamentals as of Jul 19, 2026

Our scenario range runs from $4.46 (bear case) to $7.43 (bull case); at $11.57, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 55% below its 52-week high and 133% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -50% fair-value upside, at -49%, RPD screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF $17.74 $36.11 $69.57 80
Residual Income $2.18 $2.68 $5.75 76
Rev-Margin DCF $0.7300 $5.64 $12.89 74
All 22 models by family
DCF Models
FCF DCF $19.54 $33.31 $73.77 38
Owner Earnings $2.01 $14.53 $37.76 31
5Y Revenue Exit $0.7300 $3.80 $9.35 39
5Y EBITDA Exit $5.15 $13.05 $27.61 41
5Y P/E Exit $3.10 $11.26 $21.04 38
10Y Revenue Exit $6.79 $14.75 $18.84 36
10Y EBITDA Exit $9.74 $22.88 $44.85 37
10Y P/E Exit $8.40 $19.12 $35.68 35
Earnings-Based
Graham-Dodd $2.38 $16.59 $23.28 54
Lynch FV $5.51 $7.88 $10.24 50
PEG = 1.0 $5.51 $7.88 $10.24 46
Dividend Discount
Gordon GGM $0.9100 $1.63 $2.25 70
DDM Multi-Stage $0.9100 $1.49 $1.75 61
Multiples
P/E Multiple $5.25 $7.00 $8.75 63
P/S Multiple $4.46 $5.95 $7.43 58
P/B Multiple $4.46 $5.95 $7.43 55
EV/EBITDA $1.43 $4.20 54
Asset-Based
NCAV (Graham) $1.16 $1.55 $2.32 50
Growth DCF
Growth DCF $17.74 $36.11 $69.57 80
Rev-Margin DCF $0.7300 $5.64 $12.89 74
Economic Profit
Residual Income $2.18 $2.68 $5.75 76
Growth Earnings
Growth-Adj P/E $7.14 $10.20 $13.26 68

Widest divergence: DCF Models ($14.53) versus Dividend Discount ($1.49). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) $859M
Revenue growth (YoY) -0.3%
Net margin 2.6%
Return on equity 19.7%
Free cash flow $145M FY2025
P/E ratio 19.2
More key figures
Operating margin 0.0%
EPS (TTM) $0.3500
EPS growth (YoY) -43.1%
Net debt $782M FY2025

Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 50/100

Of which business quality 49 · Market factors (momentum, volatility) 33

Profitability 40
Margins and returns on capital today
Quality Growth 40
Are margins and returns improving?
Cashflow 84
Earnings quality: real cash, not paper profit
Fin. Strength 11
Balance sheet, leverage, solvency risk
Investment 79
Disciplined investing over empire-building
Low Volatility 30
Calm price path (market factor)
Momentum 45
Price trend over the last 3–12 months (market factor)
52W Momentum 16
Distance to the 52-week high (market factor)
Net Issuance 49
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Rapid7, Inc. provides cybersecurity software and services under the Rapid7, Nexpose, and Metasploit brand names. It offers Rapid7 Agent, a software-based agent that is used on assets across on-premises and cloud environments to centralize and monitor data on company's platform; Rapid7 Network Sensor that analyzes raw end-to-end network traffic to increase …

Full company description

Rapid7, Inc. provides cybersecurity software and services under the Rapid7, Nexpose, and Metasploit brand names. It offers Rapid7 Agent, a software-based agent that is used on assets across on-premises and cloud environments to centralize and monitor data on company's platform; Rapid7 Network Sensor that analyzes raw end-to-end network traffic to increase visibility into user activity, pinpoint real threats, and investigations; Rapid7 Cloud Event Data Harvesting that offers visibility into changes made to cloud resources; and third-party integrations and ecosystem, as well as orchestration and automation solutions. It also offers various platforms, including Rapid7 managed threat complete consisting of managed detection response that delivers end-to-end threat detection and response; Incident Command, a security information and event management, and extended detection and response solution; Incident Response Services to prepare and respond to potential breaches; Threat Intelligence; Managed Digital Risk Protection; Exposure Command, an exposure management to provide attack surface visibility; and Command Essentials to provide strong security for workloads leveraging real-time visibility, identity analysis, and automated remediation. In addition, it provides Surface Command, a Cyber Asset Attack Service Management solution to detect and prioritize security issues from endpoint to cloud; Vector Command, a continuous red-teaming service that validates the external attack surface exposures and tests defenses; Rapid7 Cloud Security, a cloud risk and compliance management solution; Rapid7 Application Security, a dynamic application security testing tool; and Rapid7 Vulnerability Management, a vulnerability management solution that provides visibility across on-premise and remote endpoints for security. Further, it offers offloads day-to-day, advisory, and professional services. The company was incorporated in 2000 and is headquartered in Boston, Massachusetts.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Rapid7, Inc reported revenue of $860M in FY2025 versus $535M in FY2021, a compound +12.6%/yr. Reported net income was $23.4M in FY2025.

Growth Quality 95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
$860M
Latest YoY
+1.9%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.9%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+15.9%
Avg. growth/yr (13Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+25.3%
Revenue +12.6%/yr
FY21 $535M
FY22 $685M
FY23 $778M
FY24 $844M
FY25 $860M
Net income
FY21 −$146M
FY22 −$125M
FY23 −$149M
FY24 $25.5M
FY25 $23.4M

RPD screens 49% overvalued. Compare with Microsoft Corporation →

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Cite: Fair Value Calculator (2026). "Rapid7, Inc Fair Value". https://www.fairvalue-calculator.com/stock/RPD

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Software - Infrastructure · 370 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 50 · Below median
Fair Value upside −49% · Below median
Return on equity (TTM) 20% · Top 25%
Return on assets 0% · Below median
Net margin (TTM) 3% · Below median
Operating margin (TTM) 0% · Below median
Revenue growth -0% · Below median
Debt / equity 5.77× · Higher than 75% of peers

Valuation Multiples vs Software - Infrastructure median · lower = cheaper

P/E (TTM) 19.2× · Cheaper than median
P/B 2.91× · Pricier than median
P/S (TTM) 0.52× · Cheaper than 75% of peers
P/FCF 3.1× · Cheaper than median
EV/EBITDA 19.2× · Pricier than median
PEG 0.37× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 0
FUTURE 0 · sector 46
PAST 79 · sector 15
HEALTH 0 · sector 98
DIVIDEND 0 · sector 28

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Software - Infrastructure stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).

Stock Price Fair Value vs Fair Value
Microsoft Corporation MSFT $384.00 $274.17 -29%
Oracle Corporation ORAC C$9.08 C$2.94 -68%
Fortinet, Inc FTNT $160.78 $44.96 -72%
Synopsys, Inc 1SNPS €354.50 €93.61 -74%
Block, Inc XYZ A$114.53 A$70.69 -38%
CoreWeave, Inc CRWV $79.94 $44.89 -44%
Range Intelligent Computing Technology Group 300442 ¥71.60 ¥34.00 -53%
Oracle Financial Services Software Limited OFSS ₹11,651 ₹5,821 -50%
360 Security Technology Inc 601360 ¥9.64 ¥5.05 -48%
One97 Communications Limited PAYTM ₹1,342 ₹181.50 -86%

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Frequently asked questions

Is Rapid7, Inc (RPD) overvalued or undervalued?
As of Jul 19, 2026, our model estimates a fair value of $5.95 versus a price of $11.57, about −49% (overvalued).
What is the fair value of RPD?
Our model-based fair value for Rapid7, Inc is $5.95 (as of Jul 19, 2026), built from audited fundamentals. The current price is $11.57.
What is the quality score of RPD?
Rapid7, Inc has a Quality Score of 50/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Rapid7, Inc (RPD)?
Rapid7, Inc reported trailing-twelve-month revenue of about $859M (latest available figure, as of Jul 19, 2026).
What is the net profit margin of RPD?
The net profit margin of Rapid7, Inc is about 2.6%, meaning it keeps roughly 2.6% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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