Is SentinelOne Stock's 7.68X P/S Still Worth it: Buy, Sell or Hold?

Core Viewpoint - SentinelOne shares are currently overvalued with a Value Score of F, trading at a forward 12-month Price/Sales ratio of 7.68X compared to the sector's 6.66X and peer Okta's 5.9X [1][4]. Financial Performance - SentinelOne shares have declined 16% over the past 12 months, underperforming the Zacks Security industry's 22.1% appreciation and the broader Zacks Computer & Technology sector's 26.1% return [4]. - The Zacks Consensus Estimate for fiscal 2026 earnings is 18 cents per share, unchanged over the past 30 days, with revenues estimated at $1.03 billion, indicating a year-over-year growth of 25.45$818 million, implying a 32% year-over-year growth at the midpoint [8]. - The company’s innovative portfolio, including the Singularity platform, addresses a total market worth over $100 billion, with specific addressable markets for Endpoint Security, Data Analytics, Cloud Security, and Generative AI Security valued at$17 billion, $31 billion,$12 billion, and $3 billion respectively [10]. Product and Technology - The Singularity platform integrates data capabilities and AI-powered security across various domains, enhancing threat detection and response times [9][11]. - SentinelOne's Purple AI has become the fastest-growing solution, significantly improving threat hunting and investigations [11]. Market Position and Partnerships - SentinelOne has established a strong partner base, including major companies like Alphabet, Lenovo, Amazon, and ServiceNow, which aids in customer acquisition [13]. - The integration with Amazon Web Services has expanded SentinelOne's capabilities, particularly in securing Generative AI applications [14]. Recognition and Rankings - SentinelOne was recognized as a frontrunner in the 2024 MITRE ATT&CK Evaluations, achieving 100% detection in a third-party evaluation [12]. - The company is positioned in the Leaders Quadrant of Gartner's 2024 Magic Quadrant for Endpoint Protection Platforms alongside CrowdStrike and Microsoft [12].