Snowflake Looks Deeply Undervalued Here Based on Its Own FCF Margin Analysis

Core Viewpoint - Snowflake, Inc. (SNOW) is projected to have significant upside potential in its stock price, with a new price target set at $364 per share over the next 12 months, indicating it is currently undervalued at $246.24 [1] Financial Performance and Forecast - The company forecasts its fiscal year 2026 adjusted free cash flow (FCF) margins to be 25% of revenue, which is a notable aspect of its financial guidance [4] - Based on this forecast, FCF is expected to reach at least $1.1263 billion for FY 2026, calculated from a projected revenue of $4.4 billion [5] - Analysts have recently increased their revenue forecasts for Snowflake, now predicting revenue to rise to $5.71 billion, up from a previous estimate of $5.69 billion [6] Price Target Adjustments - The initial price target was set at $337.47 per share, reflecting a 41.4% increase from the market cap at the time [5] - Following the upward revision of revenue forecasts by analysts, the price target has been adjusted to over $364 per share [5]