SailPoint's Valuation: Overvalued with a Price-to-Sales of 13.1x and DCF Model Suggesting Fair Value of $10.63

SailPoint (SAIL) shares have gained 2% recently, reversing a quieter phase earlier this year. The stock's 90-day return of 5.07% shows modest momentum. However, SailPoint's price-to-sales ratio of 13.1x is higher than the US Software industry average and even higher than an estimated fair ratio. The stock is trading above our fair value estimate of $10.63, suggesting the market may be overestimating SailPoint's future cash generation potential.