- 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.
For further details see:
IronNet Is Extremely Undervalued At $20