One-glance verdict
Overvalued
$6.89 our estimate vs market $9.02
Wall Street consensus: $10.83 (57.3% higher than our fair-value estimate)
31% above our estimate, beyond the bull case
Fundamentals snapshot
Similarweb Ltd.
SMWB · NYQ · Technology · Software - Application
Current price
$9.02
52-week range
$2.22 - $9.50
Market cap
$796.00M
Balance sheet
Healthy
-12.46x Concerning
Net cash $28.18M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Revenue grew 13.1% last year.
- Reward Free cash flow was positive in 2/10 years.
- Risk Return on equity was -94.0% last year — the company lost money on shareholders' equity.
What this company does
Similarweb Ltd.
Similarweb helps businesses understand their online performance and competitors by providing data on website and app traffic. Their main money comes from subscriptions to these digital insights services, which is important because it shows how valuable their information is to companies looking to grow online.
How the company got here
Similarweb started in 2009 with the goal of making the vast amount of data available on the internet understandable for businesses. The company recognized that while websites and apps generate a lot of information about user behavior and market trends, this data is often too complex for companies to analyze effectively on their own. By developing sophisticated tools to collect and interpret this digital footprint, Similarweb aimed to provide businesses with a competitive edge. Key milestones have involved expanding their data collection capabilities and refining their analytical models to offer deeper insights into consumer behavior and market dynamics.
What it actually does
Imagine you're curious about how popular a certain online store is compared to its rivals, or what marketing strategies are working best for companies in your industry. Similarweb provides businesses with a digital 'X-ray' vision into the online world. They collect and analyze data from websites and mobile apps to show companies how they stack up against competitors, understand market trends, and see how customers are interacting with digital products. This helps businesses make smarter decisions about their online strategies, marketing, and product development.
Web Intelligence Solutions
This is the core of Similarweb's business, focusing on understanding website performance and online market trends. Businesses use these tools to see how much traffic their website gets compared to competitors, identify popular products or content, and understand what marketing channels (like social media or search engines) are driving visitors. It's like having a dashboard that shows you not only how your own car is performing but also how all the other cars on the road are doing, giving you insights into the overall traffic patterns. This segment is a significant portion of Similarweb's revenue, as understanding the competitive digital landscape is crucial for most online businesses.
App Intelligence
Similar to their web intelligence, this segment focuses specifically on the world of mobile applications. Companies use these solutions to track how their app is performing in terms of downloads, user engagement, and retention, and how it compares to other apps in the same category. It helps them understand user behavior within the app, identify popular features, and see where users might be dropping off. This is vital for app developers and businesses relying on mobile apps to reach their customers, representing a growing part of Similarweb's offerings as mobile usage continues to dominate.
Sales Intelligence
This part of Similarweb helps sales teams find potential customers more effectively. Instead of just guessing who might be interested in buying their products or services, sales teams can use Similarweb's data to identify 'buying signals.' These signals are online activities that suggest a company is actively looking for a solution that Similarweb's client offers, such as increased website traffic to specific product pages or competitor research. This allows sales teams to focus their efforts on the most promising leads, making their outreach more efficient and increasing the chances of making a sale. This is a smaller but important segment focused on direct lead generation for businesses.
Retail Intelligence
This segment is tailored for businesses in the retail sector, helping them understand the entire digital journey of their customers. It allows retailers to monitor consumer demand for specific products, see how their brand appears in online searches, and analyze how effectively their website converts visitors into buyers. By understanding these digital touchpoints, retailers can optimize their online presence, improve marketing campaigns, and ultimately drive more sales. This is a specialized offering that caters to the unique needs of the e-commerce and traditional retail industries.
Stock Intelligence
This specialized solution is designed for investors and financial institutions. It provides a comprehensive view of market performance, allowing users to analyze specific companies, sectors, or the overall market. Investors can use this data to identify potential investment opportunities, forecast market trends, and conduct thorough research before making investment decisions. This segment leverages Similarweb's data analysis capabilities to serve the needs of the financial world, offering insights that can inform high-stakes investment strategies.
What management is betting on now
Similarweb's management is focused on expanding their reach and deepening their value proposition for clients. They are investing in enhancing their data collection and analytical capabilities to provide even more granular and predictive insights. A key strategy is to integrate their various intelligence solutions more seamlessly, offering a more holistic view of the digital landscape for their customers. They are also aiming to grow their market share by attracting new clients and encouraging existing ones to utilize a broader range of their services, ultimately helping businesses navigate the complexities of the digital economy more effectively.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$28.74M
FY2025 Q4
$13.15M
Revenue
$282.60M
Net income
$-32.94M
Diluted EPS
-0.39
Operating cash flow
$14.64M
Free cash flow
$13.15M
Fetching…
Sources
Revenue
$249.91M
Net income
$-11.46M
Diluted EPS
-0.14
Operating cash flow
$30.17M
Free cash flow
$28.74M
Fetching…
Sources
Is it cheap or expensive?
Fair value $6.89 vs current price $9.02
Wall Street consensus is the average analyst price target: $10.83 (57.3% higher than our fair-value estimate).
Our most-likely fair value is $6.89 a share — about 23.6% below today's price of $9.02, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $28.2M - more cash than debt. Interest coverage -12.5x.
Net debt
$-28.18M
Interest coverage
-12.46x
Similarweb Ltd.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
SMWB
BASELINE
Similarweb Ltd.
Total debt $45.72M Interest coverage -12.46x This is the baseline the peer rows are being compared against.
Total debt $45.88M Interest coverage -17.37x Neither company has much profit cushion over interest right now.
Total debt $221.67M Interest coverage 5.88x This peer still has a real interest-payment cushion, while SMWB does not.
Total debt $111.83M Interest coverage 45.70x This peer still has a real interest-payment cushion, while SMWB does not.
What you should know
The case for and against SMWB
2 Rewards
1 Risk
Rewards
-
Revenue grew 13.1% last year.
-
Free cash flow was positive in 2/10 years.
Risks
-
Return on equity was -94.0% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
28.87x
P/B
34.96x
P/S
2.69x
EV/EBITDA
-124.91x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
79.8%
Operating margin
1.4%
Net margin
-7.4%
ROE
-94.0%
ROA
-3.2%
Health
Liquidity and balance-sheet strength
Debt / equity
2.01x
Current ratio
0.76x
Quick ratio
0.63x
Total debt
$45.72M
Total cash
$73.90M
Growth
How the business has been compounding
Revenue TTM
$943.77M
Revenue 5Y CAGR
19.7%
EPS TTM
-0.25
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-4.29M
Free CF TTM
$13.15M
FCF margin
1.4%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
—
Last ex-div date
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