Fundamentals snapshot
TEAM · NMS · Technology · Software - Application
Current price
$97.89
52-week range
$56.01 - $222.59
Market cap
$24.84B
One-glance verdict
Fair-value range $251.66 – $543.76 (cautious → optimistic — tap the ? for the math)
Wall Street consensus: $143.18 (-61.5% lower than our fair-value estimate)
Buy below $297.85 for a 20% safety cushion
Balance sheet
Net debt $106.68M. Interest coverage shows how many times profit covers the interest bill.
What stands out
Quick scan of the biggest positives and negatives from the detailed checklist below.
What this company does
Atlassian sells widely-used software tools like Jira and Confluence that help teams, especially in the tech industry, manage projects and share work. The company makes its money from subscriptions, which generates predictable recurring revenue (income that comes in consistently from customers paying on a regular schedule). This is important because as businesses rely more on these integrated tools, it becomes difficult and costly for them to switch to a competitor's product.
Atlassian was started in 2002 by two Australian university friends, Mike Cannon-Brookes and Scott Farquhar, with a $10,000 credit card loan. They couldn't afford a sales team, so they focused on creating products that were easy for people to try and buy directly from their website. Their first major product was Jira, a tool for software developers to track bugs and manage their projects. A key turning point was the launch of Confluence in 2004, a wiki-style tool that helped teams share knowledge and collaborate, expanding their customer base beyond just developers. The company grew by acquiring other popular tools like Trello in 2017 and Loom, a video messaging tool, to broaden its collaboration offerings.
Atlassian creates a suite of software tools that help teams of all kinds organize, discuss, and complete their work. Think of it as a digital toolkit for collaboration, helping people avoid the chaos of endless email chains and scattered spreadsheets. Their products allow teams to plan projects, create and share documents, track tasks, and communicate more effectively, whether they are building software, running a marketing campaign, or onboarding a new employee. Many of their tools are designed to be used by both technical and non-technical teams within a company, such as those in HR, finance, or legal departments.
This is Atlassian's main way of making money, accounting for the vast majority of its revenue (the money it brings in from sales). Customers pay a recurring fee, usually monthly or annually, to use Atlassian's cloud-based software products like Jira and Confluence. The price is typically based on the number of people using the software, with different tiers of features available for teams of various sizes. This subscription model provides the company with a steady and predictable stream of income.
Atlassian operates an app store, similar to Apple's App Store, called the Atlassian Marketplace. Here, outside developers can create and sell their own apps and plugins that add new features or connect other tools to Atlassian's core products. For every sale made through the Marketplace, Atlassian takes a commission (a percentage of the sale). This is a smaller but profitable part of the business that makes their main products more valuable and customizable for customers without Atlassian having to build every feature itself.
Atlassian's main focus is on becoming the central "System of Work" for all teams within a company, not just software developers. A major part of this strategy is moving all of its customers to its cloud-based platform and away from software they host themselves. The company is also heavily investing in artificial intelligence, embedding features called Atlassian Intelligence across its products to automate tasks, summarize information, and help teams work faster. Finally, they are concentrating on winning over large enterprise customers and expanding the use of their tools for things like IT service management to compete with other major software providers.
Price history
Earnings history
Click any quarter to read the call summary and what the numbers say.
Is it cheap or expensive?
Wall Street consensus is the average analyst price target: $143.18 (-61.5% lower than our fair-value estimate).
Buy below $297.85 for a 20% safety cushion. That means buying at least 20% below our fair value, as a buffer in case our estimate turns out too rosy.
Our most-likely fair value is $372.31 a share — about 280.3% above today's price of $97.89, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Net debt $106.7M. Interest coverage -4.3x.
Atlassian Corporation's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Total debt $1.24B Interest coverage -4.27x This is the baseline the peer rows are being compared against.
Total debt $2.43B Interest coverage 79.30x This peer still has a real interest-payment cushion, while TEAM does not.
Total debt $1.29B Interest coverage -4.01x Neither company has much profit cushion over interest right now.
Total debt $247.29M Interest coverage 13.03x This peer still has a real interest-payment cushion, while TEAM does not.
Total debt $248.24M Interest coverage -62.68x Neither company has much profit cushion over interest right now.
What you should know
The numbers
Tap any ? icon to learn what it means.
Valuation
Profitability
Health
Growth
Cash flow
Dividend
Metric explainer
Debt comparison
What you should know