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Rapid7 Inc (RPD) Fair Value & Analysis

Technology · US · Market cap $450M · ISIN US7534221046

What is Rapid7 Inc really worth?

RI Rapid7 Inc logo Rapid7 Inc RPD · US
Price$11.47
Fair Value$5.95
Upside−48.1%
Quality50/100

A solid business, but trading 93% above our fair value of $5.95.

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Strengths

Healthy Growth (revenue 5y +15.9 %/yr)

Risks

!Thin margins · 2.6% net margin
!High debt · generates free cash flow
!Trails peers (5/15)
!Narrow moat 42/100
Evidence: High Range $5.95 – $7.50

Fair value as of: Aug 28, 2026

From 22 valuation models · updated 8 days ago

Share price +6.4% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case ($7.50). 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.

Price vs Fair Value (5 years)

$140.13 $5.05 Fair Value $5.95 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 28, 2026.

How to read this chart

60‑month range $5.05 – $140.13 · fair‑value band $5.95 – $7.50 · the $11.47 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 Aug 28, 2026.

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Analysis

Rapid7 Inc (RPD) currently trades at $11.47, while our model-based Fair Value estimate is $5.95, implying the stock looks roughly 92.8% overvalued today. The Quality Score stands at 50/100 (solid quality), in the Technology sector. Bull case: the DCF Models group reads highest at a median of $14.75 per share, and 10 of the 22 models we run sit above the $11.47 price. Bear case: the Dividend Discount group reads lowest at $1.49, and 12 of the 22 models stay below the price. Evidence for this calculation is 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 Aug 28, 2026

Our scenario range runs from $5.95 (bear case) to $7.50 (bull case); at $11.47, 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 56% below its 52-week high and 131% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at −32% fair-value upside, at −48%, RPD screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $0.2378 per share, which is 4.0 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

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
FCF DCF $19.54 $33.31 $73.77 74
Growth DCF $17.74 $36.11 $69.57 74
Residual Income $2.18 $2.68 $5.75 71
All 22 models by family
DCF Models
FCF DCF $19.54 $33.31 $73.77 74
Owner Earnings $2.01 $14.53 $37.76 66
5Y Revenue Exit $0.7300 $3.80 $9.35 63
5Y EBITDA Exit $7.28 $17.51 $36.51 69
5Y P/E Exit $4.50 $14.71 $27.27 66
10Y Revenue Exit $6.79 $14.75 $18.84 66
10Y EBITDA Exit $11.14 $26.80 $53.84 63
10Y P/E Exit $9.32 $21.69 $41.36 60
Earnings-Based
Graham-Dodd $2.38 $16.59 $23.28 63
Lynch FV $5.51 $7.88 $10.24 61
PEG = 1.0 $5.51 $7.88 $10.24 57
Dividend Discount
Gordon GGM $0.9100 $1.63 $2.25 68
DDM Multi-Stage $0.9100 $1.49 $1.75 67
Multiples
P/E Multiple $7.35 $9.80 $12.24 63
P/S Multiple $4.46 $5.95 $7.43 58
P/B Multiple $4.46 $5.95 $7.43 55
EV/EBITDA $1.85 $5.69 $9.53 62
Asset-Based
NCAV (Graham) $1.16 $1.55 $2.32 54
Growth DCF
Growth DCF $17.74 $36.11 $69.57 74
Rev-Margin DCF $0.7300 $5.64 $12.89 64
Economic Profit
Residual Income $2.18 $2.68 $5.75 71
Growth Earnings
Growth-Adj P/E $8.28 $11.83 $15.37 67

Widest divergence: DCF Models ($14.75) versus Dividend Discount ($1.49). Highest evidence: FCF DCF (74).

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Key figures & financial health

P/E ratio 32.8
P/S ratio 0.89 P/E × margin
EPS (TTM) $0.3500 price ÷ EPS = P/E 32.8
Dividend yield 1.7% payout 56.8%
Net margin 2.7% FY2025
Return on equity 19.7% TTM
More key figures
Profitability
Return on assets (EBIT) −4.0% avg 5y
Operating margin 0.0% TTM
Growth
Revenue (TTM) $859M TTM
Revenue growth (YoY) −0.3% 3y avg +7.9%
EPS growth (YoY) −43.1%
Balance sheet & cash flow
Free cash flow $145M FY2025
Net debt $782M FY2025 · ≈ 5.4 yrs of FCF

Figures from reported company fundamentals · as of Aug 28, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 50/100

Of which business quality 49 · Market factors (momentum, volatility) 43

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 67
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

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. revenue 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. revenue 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. revenue 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%
Value creation/yr We only publish this rate when it is defensible. Reason: no profitable base year
not computed
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 93% 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 · 369 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 −48% · 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% · Bottom 25%
Dividend yield (TTM) 1.7% · Above median
Debt / equity 5.77× · Higher than 75% of peers

Valuation Multiples vs Software - Infrastructure median · lower = cheaper

P/E (TTM) 32.8× · Pricier 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

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE0 · sector 50
PAST79 · sector 15
HEALTH0 · sector 98
DIVIDEND35 · sector 26

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

Similar stocks

10 more Software - Infrastructure stocks, each showing price versus our Fair Value estimate (as of Aug 28, 2026).

Stock Price Fair Value vs Fair Value
Microsoft Corporation MSFT $480.35 $365.74 −24%
Oracle Corporation ORCL $151.94 $117.84 −22%
Fortinet, Inc FTNT $166.00 $61.46 −63%
Synopsys, Inc SNPS $442.61 $101.19 −77%
Block, Inc XYZ A$111.01 A$70.69 −36%
CoreWeave, Inc CRWV $105.26 $71.79 −32%
NetApp, Inc NTAP $190.64 $154.83 −19%
Adyen N.V ADYEN €1,007 €707.53 −30%
MongoDB, Inc MDB $440.58 $93.91 −79%
Okta, Inc OKTA $166.23 $30.50 −82%

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Frequently asked questions

Is Rapid7 Inc (RPD) overvalued or undervalued?
As of Aug 28, 2026, our model estimates a fair value of $5.95 versus a price of $11.47, about −48% upside (overvalued).
What is the fair value of RPD?
Our model-based fair value for Rapid7 Inc is $5.95 (as of Aug 28, 2026), built from audited fundamentals. The current price: $11.47.
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 Aug 28, 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.
Does Rapid7 Inc pay a dividend?
Rapid7 Inc currently shows a dividend yield of about 1.73% relative to its recent price (as of Aug 28, 2026).
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