Red Hat Stock 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.

RHT Free Cash Flow Trend

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

Based on historical returns, we believe that Red Hat can grow its free cash at a rate of about 1%. That's positive!

  • This company is very stable.
  • This company has amazingly consistent growth!
  • This stock looks overpriced.
  • This company is making money at a modest rate.
  • This company pays no dividend.

Inside the RHT Numbers

RHT Price
(Red Hat stock price per share)
[?] RHT Fair Price
(based on intrinsic value)
[?] RHT Safety Price (based on a variable margin of safety) $25.07
[?] PE Ratio versus Sector 384% higher than other Technology stocks
[?] PE Ratio versus Industry 569% higher than other Software - Application stocks
[?] Cash Yield 2.01%
[?] Free Cash Flow Jitter 11%

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.