IRNT - IronNet Is Extremely Undervalued At $20

• IronNet offers cybersecurity products. Equipped with artificial intelligence techniques, behavioral analytics, and machine learning technologies, the company detects unknown threats coming from cybercriminal organizations or nation states.
• I believe that IronNet looks like CrowdStrike in 2016-2018.
• CrowdStrike reported positive FCF for the first time in 2019-2021, approximately eight years after the company was founded. In 2021, the company’s FCF/Sales was equal to 33%.
• I expect IronNet to report sales growth of 150%-50% from 2024 to 2030. The FCF/Sales ratio would grow from -30% in 2024 to 25% in 2030. With these figures, the free cash flow would stay at $870 million in 2030, and my terminal FCF is equal to $1,000 million.
• With the company’s international expansion, M&A initiatives, and cloud acceleration, under my most optimistic case scenario, the company is worth $55 per share. If IronNet continues to sign agreements with nation states and companies like CrowdStrike did, I believe that the upside potential is significant.

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