Rapid7 Inc.
Rapid7 is a global cybersecurity operations software and service provider on a mission to create a safer digital world by making cybersecurity simpler and more accessible. For twenty-five years, Rapid7 has partnered with customers across the globe representing a diverse range of industries and sizes to improve the efficacy and productivity of their security operations ( SecOps ).
$13.51
+$0.29 (+2.19%)
EOD Oct 21, 2026
Operating margin is thin at 1.35%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue growth slowed to 1.9%, essentially flat. Margins also contracted 2.8pp. This is a business that needs a catalyst.
At 44x earnings, the current multiple leaves limited room for execution misses or growth deceleration. Free cash flow declined 13% versus the prior year, cash generation momentum has weakened.
43.6x earnings, 6.3x FCF. The market is pricing in years of above-average growth. If that thesis breaks, downside from multiple compression alone could be 30%+. This is a stock where you're paying for the future, not the present.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$856M
▲ +1.9% YoY
Net Income (TTM)
$20M
▼ -8.4% YoY
Op. Margin
1.24%
▼ -2.8pp YoY
ROIC
0.97%
▼ -1.0pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$145M
▼ -13.1% YoY
Op. Cash Flow (TTM)
$153M
▼ -10.4% YoY
Net Debt
-$339M
Net Cash Position
Cash & Equiv.
$703M
5Y CAGR: +15.9%
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SourceComputed from the 10-Q filed 3 Aug 2026, covering the period ending 30 Jun 2026, as reported to the SEC. Data last refreshed 11 Aug 2026. How this is calculated.
Price from market data, last close as of 21 Oct 2026. Fiscal year ends Dec. Sector medians are approximate S&P 500 benchmarks and update periodically.
Is Rapid7 (RPD) overvalued?
At a P/E of 43.6 and a price-to-free-cash-flow of 6.3, Rapid7 (RPD) trades below a two-stage DCF intrinsic value of about $112.61 per share, so at $13.51 the stock looks undervalued (733.6% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Rapid7 scores 70/100 on Intrinsiqq's quality scorecard (a solid business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is Rapid7's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $112.61 per share for RPD, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $84.46. At today's $13.51, that puts the stock about 733.6% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is Rapid7 a high-quality business?+
Rapid7 scores 70 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a solid business on these measures. Recent fundamentals include a 1.2% operating margin and a 1.0% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Is Rapid7 a good stock to buy right now?+
That depends on valuation and quality together, not either alone. RPD currently trades below its estimated intrinsic value and scores 70/100 on quality (solid). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.
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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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