Is Tenable Holdings (TENB) Fully Valued Following Its $400 Million Refinancing?

Tenable Holdings (TENB) just locked in a new US$400 million senior secured revolving credit facility, completing a broader refinancing shift away from its prior Term Loan B and earlier revolver.

The refinancing news comes after a strong run in Tenable Holdings’ share price this year, with a year-to-date share price return of 72.99% and a 1-year total shareholder return of 34.70%. However, the 3-year and 5-year total shareholder returns remain down 8.49% and 24.22% respectively.

Scan how Tenable Holdings’ refinancing story compares with other security and AI-focused businesses by reviewing the hand picked 38 profitable AI stocks that aren't just burning cash already generating real earnings rather than just top line hype.

Tenable Holdings has already delivered a sharp rebound, yet the weaker 3 and 5 year returns tell a different story. Is most of the rerating already in the rearview mirror, or does valuation still leave room ahead?

Most Popular Narrative: 11% Overvalued

The most followed narrative pegs Tenable Holdings' fair value at $35.35, which sits below the last close of $39.32 and frames the recent rally as rich against that central case.

The analysts have a consensus price target of $35.35 for Tenable Holdings based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $50.0, and the most bearish reporting a price target of just $23.0.

See why 37 investors see Tenable Holdings as 11% overvalued.

Result: Fair Value of $35.35 (OVERVALUED)

Still, Tenable Holdings leans heavily on public sector budgets and faces pressure from larger platform competitors, which could challenge the current fair value narrative.

Find out about the key risks to this Tenable Holdings narrative.

Another View: SWS DCF Puts Tenable Holdings Below Fair Value

Analyst targets frame Tenable Holdings as 11% overvalued at $39.32 against a $35.35 fair value. A different tool tells another story. The SWS DCF model estimates future cash flows at $41.21 per share, which puts the stock about 4.6% below that fair value. The question is which reference point deserves more weight for you.

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Tenable Holdings for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 33 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

If the split between risks and rewards around Tenable Holdings feels finely balanced, this is the moment to dig into the details yourself. Start by weighing the 3 key rewards and 2 important warning signs

Looking for more Tenable Holdings sized opportunities?

If Tenable Holdings has your attention, do not stop here. Broaden your watchlist now and give yourself more ways to put your capital to work.

• Target potential bargains by scanning companies that screen as high quality yet priced below their estimated worth through the 33 high quality undervalued stocks.
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• Hunt for under-the-radar potential by checking a 20 high quality undiscovered gems that filters for strong fundamentals before wider attention arrives.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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