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    GitLab (GTLB) Valuation Check After Recent Share Price Slide and Growth Reassessment

    Simply Wall St·12/23/2025 06:16:04
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    Short term stock performance and recent moves

    GitLab (GTLB) has quietly slipped over the past 3 months, with the stock down around 21% and roughly 32% lower year to date, even as revenue continues to grow.

    See our latest analysis for GitLab.

    That slide has left GitLab with a roughly 32 percent year to date share price return in the red and a 1 year total shareholder return of about negative 36 percent. This suggests momentum has cooled as investors reassess the balance between strong growth and ongoing losses at a 38.38 dollar share price.

    If GitLab has you rethinking how you get exposure to software growth, it could be worth scanning other high growth tech and AI names through high growth tech and AI stocks.

    With shares now trading at a steep discount to analyst targets despite double digit revenue growth, investors face a key question: is GitLab a mispriced growth story, or is the market already discounting its future gains?

    Most Popular Narrative: 28.5% Undervalued

    With GitLab closing at 38.38 dollars against a narrative fair value near the mid 50s, the valuation debate hinges on ambitious growth and margin lift.

    The ongoing migration from on premises to cloud based development, coupled with GitLab's scaling SaaS and Dedicated offerings (with SaaS up 39% YoY and Dedicated ARR up 92% YoY), will likely improve gross margin leverage, aid in operating efficiency, and support expansion of net margins and free cash flow.

    Read the complete narrative.

    Curious how this cloud shift, faster recurring revenue and a richer margin profile combine to justify a premium future earnings multiple? Unlock the full narrative to see the math behind that upside case.

    Result: Fair Value of $53.67 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, accelerating AI tools and intensifying competition from GitHub could compress pricing power, slow ARR growth, and challenge the bullish margin expansion narrative.

    Find out about the key risks to this GitLab narrative.

    Another Angle on Valuation

    Multiples tell a mixed story, with GitLab looking pricey versus the broader US software sector but cheaper than close peers and its own fair ratio. In practice that means there could be upside if sentiment normalizes, but also real downside if growth disappoints and the market resets expectations.

    See what the numbers say about this price — find out in our valuation breakdown.

    NasdaqGS:GTLB PS Ratio as at Dec 2025
    NasdaqGS:GTLB PS Ratio as at Dec 2025

    Build Your Own GitLab Narrative

    If our view does not quite match yours, or you would rather dig into the numbers yourself, you can build a fresh narrative in minutes: Do it your way.

    A great starting point for your GitLab research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

    Looking for more investment ideas?

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    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.