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Cloudflare (NET) is in focus after expanding its work with Anthropic to launch Cloudflare Environments for Claude Managed Agents, a partnership aimed at helping enterprises deploy AI agents securely and at scale.
See our latest analysis for Cloudflare.
Beyond the Anthropic tie up, Cloudflare’s recent headlines have included governance questions from JLens and debate over its layoff memo. The stock still shows building momentum with a 90 day share price return of 26.62% and a 3 year total shareholder return above 200%.
If you are interested in other AI focused opportunities, this is a good moment to scan the market with our screener for 47 AI infrastructure stocks
The stock is up 34.48% over the past year and about 229% over three years, yet analysts’ average price target still sits slightly above the US$217.54 share price. Is there more upside here, or is future growth already fully priced in?
Most Popular Narrative: 6.2% Undervalued
Cloudflare’s most followed narrative pegs fair value at about $231.85, a touch above the latest $217.54 close. It anchors that view on long term AI and security demand.
The accelerating adoption of AI, explosion in global web traffic, and proliferation of IoT devices are driving increased demand for fast, secure, and resilient cloud-native infrastructure, Cloudflare’s core strength, evidenced by strategic partnerships with major AI companies and record-breaking DDoS mitigation, positioning the company for sustained top-line revenue growth and strengthening customer retention.
Want to see what sits behind that fair value call? The narrative leans on strong revenue expansion, a shift toward profitability, and a future earnings multiple that assumes Cloudflare stays in rarefied territory.
Result: Fair Value of $231.85 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, this upbeat view still rests heavily on high analyst growth and margin assumptions, while customer concentration and intense competition in cloud security could quickly challenge that narrative.
Find out about the key risks to this Cloudflare narrative.
Another Angle on Valuation
While the analyst narrative frames Cloudflare as about 6% undervalued relative to a $231.85 fair value, the current P/S of 33x tells a different story. That is far above the US IT industry at 2.2x, the peer average at 10.9x, and even the fair ratio of 14.2x. This points to meaningful valuation risk if sentiment cools.
For a closer look at how that premium stacks up against the numbers, See what the numbers say about this price — find out in our valuation breakdown.
NYSE:NET P/S Ratio as at May 2026 Next Steps
With sentiment running hot and mixed signals on value, it makes sense to move quickly, review the full picture, and weigh both sides using 1 key reward and 1 important warning sign.
Looking for more investment ideas?
Cloudflare might be front of mind today, but you do not want to miss other stocks that could fit your goals just as well, or even better.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include NET.
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