# Rapid7 Inc. (RPD) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Technology / Software. Price $11.00, market value $741 million.

## Valuation
- **P/E (trailing): 35.5×** (5-yr avg 71.4×, 3-yr avg 71.4×). Rapid7 Inc. trades at 35.5× trailing earnings, well below its own five-year average of 71.4×: cheap by its own standards. The Technology median in the September 2026 study was 32.1×. Forward P/E is 5.4×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 0.9×**. Each dollar of revenue is priced at 0.9×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 3.8×**. The shares trade at 3.8× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 9.2×**. Enterprise value is 9.2× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 19.5%** (5-yr avg 5.6%). Free cash flow equals 19.5% of the market value, above its five-year average of 5.6%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 2.8%**. The inverse of the P/E: 2.8% of the price is earned each year.

## Profitability
- **Gross margin: 69.3%**. Rapid7 Inc. keeps 69.3% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 1.2%**. 1.2% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: 2.7%**. 2.7% of each dollar of sales reaches the bottom line.
- **Return on equity: 15.1%**. 15.1% on shareholders' equity is solid.
- **Return on invested capital: -11.2%**. Return on all capital, debt included, is -11.2%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: 1.2%**. Each dollar of assets produces 1.2% of profit.

## Growth
- **Revenue growth (1 yr): 1.9%** (3-yr 7.9%/yr, 5-yr 15.9%/yr). Revenue grew 1.9% over the last year, against 15.9% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -10.0%**. Earnings per share fell 10.0%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 36.2%/yr**. Free cash flow has compounded at 36.2% a year over three years.

## Financial health
- **Debt to equity: 0.11**. Debt is 0.11 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Rapid7 Inc. holds more cash than debt.
- **Current ratio: 1.28** (quick 1.28). Current assets cover the next year's liabilities 1.28 times.
- **Altman Z-score: 1.04**. A Z-score of 1.04 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. Rapid7 Inc. does not currently pay a dividend.

## Price and momentum
- **Total return (1 yr): -44.6%** (YTD -27.6%, 3-mo 46.5%). The shares are down 44.6% over twelve months including dividends.
- **From 52-week high: -47.5%** (121.3% above the low). Trading 47% below its 52-week high, deep in a drawdown.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 45**. An RSI of 45 is neutral.
- **Beta (1 yr): 0.86** (volatility 75%). Beta of 0.86 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=RPD · Page: https://foliofundamentals.com/stocks/rpd

Not investment advice.