Red HatStock Price and Value Analysis

Should you buy Red Hat stock? (NYSE:RHT). Let's see how it does in our automated value investing analysis system.

AdvantagesDisadvantagesNeutral
  • This company is making money at a decent rate.
  • This company is very stable.
  • This company has stable growth.
  • This stock looks overpriced.
  • This company pays no dividend.

RHT Free Cash Flow Trend

Based on historical returns, we believe that Red Hat can grow its free cash at a rate of about 7%. That's positive!

Free Cash Flow trendline for RHT
Free Cash Flow trendline for Red Hat

Inside the RHT Numbers

RHT Price
(Red Hat stock price per share)
$125.29
[?] RHT Fair Price
(based on intrinsic value)
$36.41
[?] RHT Safety Price (based on a variable margin of safety) $29.13
[?] PE Ratio versus Sector 355% higher than other Technology stocks
[?] PE Ratio versus Industry 328% higher than other Application Software stocks
[?] Cash Yield 3.00%
[?] Free Cash Flow Jitter 16%

Is Red Hat Stock on Sale?

We believe that Red Hat may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Red Hat looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy RHT Stock?

Does Red Hat have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.