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Stock&Pitch&
Westen&Koorbusch,&Udit&Agrawal,&Grace&Chang,&Elouise&Roche,&Jeff&Zeren&
2&
Table&of&Contents&
I. Investment&Thesis&&&Company&Overview&II. Cyber&Security&Market&&&CompeLtors&III. High&Profile&Security&Breaches&IV. Industry&Demand&&&Outlook&V. Financials&&&ValuaLon&
I. &Investment&Thesis&&&Company&Overview&
4&
Fire&Eye(NASDAQ:(FEYE)(
&RecommendaLon:&Buy &Current&Price:&$44.27 &Price&Target:&$65.82&(+48.7%)&
FireEye’s&strong&posi>on&as&an&industry&leader&in&threat&detec>on,&acquisi>on&of&Mandiant,&proven&management,&aggressive&expansionary&plans&and&credibility&give&it&an&edge&to&take&advantage&of&a&rapidly&expanding&market.&&
! Increasing&frequency&of&cyber&a`acks&and&crimes&
! Industry&leader&in&advanced&threat&detecLon&and&forensics&
! AcquisiLon&of&Mandiant&in&2014&gives&Fire&Eye&a&great&synergy&between&products&&
! Have&secured&several&government&contracts&which&may&result&in&future&contracts&
CATALYSTS&
RISKS&
! InnovaLons&in&technology&could&disrupt&the&market&&
! Bad&handling&of&expectaLons&makes&Fire&Eye&vulnerable&to&an&earnings&miss&
! Hard&to&value&using&tradiLonal&valuaLon&methods&
5&
Company&Overview(
Source:&FireEye&Investor&PresentaLon,&Bloomberg&
! FireEye&specializes&in&Advanced&Threat&DetecLon&&! Founded&in&2004&! Based&in&Milpitas,&CA&
! Uses&a&tradiLonal&network&security&model&which&involves&a&substanLal&hardware&purchase&in&addiLon&to&a&required&subscripLon&
! FireEye&as&a&Service&(FaaS)&was&announced&in&Q3&2014&which&basically&allows&consumers&to&access&FireEye’s&cyber&defense&technology&on&demand&! Rather&than&having&to&pay&upfront,&the&cost&is&billed&
out&over&a&longer&period&of&Lme&! This&should&increase&stability&of&revenue&forecasts&
BUSINESS&OVERVIEW&
VENTURE&CAPITAL&&INVESTORS&
AGGRESSIVE&EXPANSION&
! Revenue&has&been&growing&rapidly&! 2012:&$83&MM&! 2013:&$161&MM&! 2014:&$425&MM&! 2015(Expected):&$615&MM&
! Management&has&heavily&focused&on&invesLng&in&R&D&and&Infrastructure&! R&D&expenses&were&41%&of&Revenue&in&2014&! Sales&and&MarkeLng&expenses&were&76%&of&Revenue&
in&2014&&
Dave&DeWalt&(CEO&&&Chairman&of&the&Board)&! Became&CEO&in&2012&! Former&CEO&of&McAfee&&! Took&over&McAfee&in&2006&when&
the&company&was&struggling&! Sold&it&to&Intel&in&2011&for&$7.8&
Billion&&
! Mandiant&is&the&proven&leader&in&Incident&Responses&and&Forensics&
! It&has&been&hired&for&basically&all&of&the&high&profiles&data&breaches&in&recent&Lmes&such&as&JP&Morgan,&Sony,&Target&etc&
! Mandiant’s&customer&base&includes&several&Fortune&100&companies&and&governmental&agencies&like:&
! Department&of&Navy&
! Library&of&Congress&
! These&contracts&demonstrate&the&credibility&that&Mandiant&has&been&able&to&achieve&in&the&market&as&the&‘gokto’&agency&for&Incident&Responses&
6&
Mandiant&&&Governmental&Contracts&
MANDIANT& A&MATCH&MADE&IN&HEAVEN&
GOVERNMENTAL&CONTRACTS&
! FireEye’s&acquisiLon&of&Mandiant&established&it&as&:&! Industry&leader&in&Advanced&Threat&DetecLon&&! Industry&leader&in&Incident&Responses&
! Similar&to&Mandiant,&FireEye&has&been&able&to&secure&a&large&number&of&governmental&contracts&that&augment&its&credibility&like:&! Department&of&Navy&! Department&of&Commerce&! Department&of&Homeland&Security&
! Such&contracts&are&extremely&valuable&for&FireEye&because&once&these&agencies&commit&to&integraLng&FireEye&into&their&networks,&they&have&to&spend&a&lot&of&resources&in&training&personnel&to&use&the&system.&&! This&makes&it&very&hard&for&rivals&to&displace&FireEye&
&&
! FireEye&announced&an&acquisiLon&for&Mandiant&on&Jan&2,&2014&for&over&$1&Billion&in&a&Cash&+&Stock&Deal&
! The&move&was&touted&as&a&“game&changer”&for&the&industry&
! FireEye’s&stock&reacted&posiLvely&jumping&more&than&38%&&
! DeWalt&had&previously&served&on&Mandiant’s&Board&
! There&is&a&lot&of&synergy&between&Mandiant’s&Incident&Response&service&and&FireEye’s&Threat&DetecLon&sooware&because:&
! FireEye’s&customers&want&informaLon&from&data&breaches&as&fast&as&possible&&
! Every&data&breach&further&enhances&Mandiant’s&reputaLon&as&the&industry&leader&
II. &Cyber&Security&Market&&&Compe>tors&
8&
Cyber&Security&Industry&Overview&
What&is&Cyber&Security& A&World&of&Insecurity&
! Cyber&security&is&the&body&of&technologies,&processes&and&pracLces&designed&to&protect&networks,&computers,&programs&and&data&from&a`ack,&damage&or&unauthorized&access.&
! Recently,&cyber&security&has&come&to&signify&a&form&of&protecLon&from&a`acks,&designed&to¶lyze&websites,&financial&networks&and&other&computer&systems&by&flooding&them&with&data&from&other&computers&
! Governments,&military,&corporaLons,&financial&insLtuLons,&hospitals&and&other&businesses&collect,&process&and&store&confidenLal&informaLon&on&computers&and&transmit&data&across&networks&to&other&computers&
! With&the&growing&volume&and&sophisLcaLon&of&cyber&a`acks,&ongoing&a`enLon&is&required&to&protect&sensiLve&data&and&personal&informaLon,&as&well&as&safeguard&naLonal&security&
! During&a&Senate&hearing&in&March&2013,&top&intelligence&officials&warned&that&cyber&a`acks&and&digital&spying&are&the&top&threat&to&naLonal&security&
! Cost&of&digital&crime&and&intellectualkproperty&theo&is&$445&billion,&roughly&equivalent&to&the&GDP&of&a&small,&rich&European&country&such&as&Austria&
How&is&the&Cyber&Security&Industry&changing&Why&is&Cyber&Security&Important&&
! Cyberksecurity,&which&involves&protecLng&both&data&and&people,&is&facing&mulLple&threats,¬ably&cybercrime&and&online&industrial&espionage,&both&of&which&are&growing&rapidly.&
! Cyber&Sabotage&is&a&new&form&of&terrorism&where&a`acks&are&focused&on&vital&parts&of&the&economy,&power&staLons,&communicaLon&networks,&etc.&
! Internet&of&things&creates&more&opportuniLes&for&hacking&
9&
Cyber&Security&Industry&Overview&
Cost&of&Cyber&Crime& Average&Annualized&Cost&by&Industry&
! Mean&annualized&cost&for&50&benchmarked&organizaLons&is&$11.6&million&per&year&in&2013,&up&from&$8.9&in&2012&(30%&increase),&$5.6&in&2011&and&3.6&in&2010&
! Larger&organizaLons&incur&greater&annualized&costs,&however&smaller&organizaLons&incur&a&significantly&higher&per&capita&cost&&
! All&industries&fall&vicLm&to&cybercrime,&but&to&different°rees&
! Financial&services,&defense,&energy&vs.&retail,&hospitality&
! The&most&costly&cyber&crimes&are&those&caused&by&denial&of&services,&malicious&code&and&webkbased&a`acks&
! 55%&of&a`acks,&requires&more&intrusive&prevenLon&system&
! The&average&Lme&to&resolve&an&a`ack&is&32&days,&with&an&average&monetary&cost&of&$1,035,769&during&this&period&
! Last&year’s&average&Lme&was&24&days,&cosLng&$591,780&(55%&increase)&
Affected&Industries&
Of&257&incidents&reported&to&the&Department&of&Homeland&Security&in&2013,&an&overwhelming&56%&occurred&in&the&energy§or,&exceeding&all&incidents&reported&in&other§ors&combined.&&
&Source:&Ponemon&InsLtute&
10&
Industry&Growth&
HACK&ETF&
Cyber&Security&FiveZYear&Growth&Forecast& CAGR&growth&
! New&exchangektraded&fund&for&cyber&security&companies&
! The&Lcker&symbol&is,&appropriately,&HACK&
! Top&ten&holdings&are&Cyberark&Sooware,&FireEye,&Infoblox,&ANHlab,&Proofpoint,&Qualys,&Palo&Alto&Networks,&Splunk,&ForLnet,&AVG&technologies&
! FireEye&is&the&second&largest&holding&in&HACK&
! HACK&has&surged&17%&in&February,&and&has&been&rising&phenomenally&due&to&the&surge&in&cyber&security&breaches&
Increase&in&spending&and&demand&
Research&firm&MarketsandMarkets&expects&the&cyber&security&field&to&grow&at&a&compound&annual&growth&rate&of&roughly&10.3%&through&2019.&By&2019&the&market&will&be&worth&nearly&$156&billion.&
! Research&indicates&that&more&than&$95&billion&will&be&spent&on&cyber&security&efforts&this&year,&and&will&consistently&grow&to&$155.74&billion&by&2019&
! In&early&February&President&Obama&dedicated&$14&billion&in&his&2016&budget&proposal&to&cyber&defense&to&safeguard&government&agencies&and&the&private§or&
! Department&of&Defense&spending&is&at&to&$447&million,&up&135%&from&$191&million&in&2013&
! Demand&for&cyber&security&experts&grew&73%&during&the&five&years&from&2007&to&2012&according&to&Burning&Glass&Tech&
With&a&cumulaLve&market&valued&at&$65.5&billion&(2015k2020),&the&U.S.&Federal&Cyber&Security&market&will&grow&steadily&at&about&6.2%&CAGR.&
11&
CompeLtors&
Palo&Alto&Networks&
Sourcefire& Check&Point&So\ware&Technologies&
! Aims&to&prevent&everything&from&runkofkthekmill&malware&to&highktech&cyber&threats&
! Stock&at&an&allkLme&high&
! Forecasted&to&double&revenues&this&year&but&sLll&run&at&a&loss&
! Trades&at&nearly&200x&this&year’s&earnings&esLmates&
! No&significant&standing&in&the&advanced&threat&detecLon&market&
For>net&
! 2,854+&Employees&(400&greater&than&FireEye)&
! Claims&customer&base&of&200,000,&4,000&of&which&are&“advanced&threat&detecLon”&customers&
! No&significant&standing&in&the&advanced&threat&detecLon&market&
! Sells&Cyber&Security&products,&no&services&
! Acquired&for&9.6x&sales&by&Cisco&in&late&2013&
! Early&growth&fueled&by&demand&from&US&government&and&a&strong&presence&in&the&Fortune&500&
! Developed&a&next&generaLon&fire&wall&system&that&allowed&for&bug&detecLon&and&prevenLon&
! Specializes&in&network&security&providing&anLvirus&and&smallkbusiness&services,&as&well&as&security&systems&for&telecom&carriers&
! Second&largest&network&security&company&in&the&world&
! More&mature&but&sluggish&revenue&growth&in&a&fastkgrowing&cyber&security§or&&
III.&High&Profile&Security&Breaches&
! Anthem&k&Jan&2015.&Second&largest&health&insurer&in&U.S.&80&million&names,&addresses,&DOBs,&SSNs,&employment&histories&stolen.&&
! Sony&k&Nov&2014.&100&TB&of&data&stolen,&ranging&from&employee&info&to&unreleased&scripts&and&footage.&Previous&a`ack&to&PlaystaLon&networks&in&2011.&&
! Home&Depot&k&Sept&2014.&56&million&customer&credit/debit&card&numbers&stolen.&&
! JP&Morgan&Chase&k&July&2014.&76&million&household&and&7&million&small&business&accounts&compromised.&Names,&phone&numbers,&emails,&no&evidence&of&account&fraud&or&theo&of&SSNs&or&passwords.&
! Target&k&Dec&2013.&40&million&credit/debit&card&numbers&stolen&plus&70&million&names,&phone&numbers,&emails,&addresses&
! Evernote&k&March&2013.&50&million&emails,&passwords,&and&usernames&stolen.&Password&phishing&spam&sent&to&users.&
! Heartland&Payment&Systems&k&2008.&Largest&hack&in&history.&130&million&credit&card&numbers&stolen;&650&financial&services&companies&compromised.&
Biggest&Cyber&A^ack&Targets&
Major&Cyber&A`acks&
! There&has&been&a&marked&rise&in&both&number&and&sophisLcaLon&of&a`ack&types&that&hackers&can&use,&which&makes&it&increasingly&difficult&to&prevent&leaks&or&trace&hackers.&
! FireEye’s&high&R&D&costs&can&be&a`ributed&to&the&level&of&innovaLon&needed&to&keep&up&with&the&constant&developments&in&hacking.&&
! Mandiant’s&CEO&said&of&the&Sony&a`ack:&“The&bo`om&line&is&that&this&was&an&unparalleled&and&well&planned&crime,&carried&out&by&an&organized&group,&for&which&neither&SPE&nor&other&companies&could&have&been&fully&prepared.”&
SophisLcaLon&of&Cyber&A`acks&
! A`acks&have&been&increasingly&focused&on&businesses&and&governments.&
! EducaLon&and&news&organizaLons&other&largest&vicLms,&but&are&being&focused&on&less&and&less&as&Lme&goes&on.&
! The&goals&of&hackers&are&very&diverse,&but&a`acks&are&generally&focused&in&industries&where&private/sensiLve&informaLon&is&stored&online&or&in&the&cloud.&
DistribuLon&of&A`acks&Who&Gets&A^acked?&
Cyberwarfare&and&Cyberterrorism&
! Increasingly,&government&organizaLons&are&either&vicLms&or&sponsors&of&organized&hacks.&! Recent&alleged&a`acks&on&U.S.&include:&Sony&
(2014,&N.&Korea).&JP&Morgan&(2014,&Russia).&Las&Vegas&Sands&Co.&(2014,&Iran).&
! Most&of&these&a`acks&take&years&to&follow&up&and&conclusively&prove&who&launched&them,&if&it&is&ever&proven.&
! Hacking&groups&have&sprouted&up&across&the&globe&recently,&as&idenLty&and&intellectual&property&theo&has&become&an&extremely&lucraLve&business.&
! Short&of&cyberterrorism,&hackLvist&groups&like&Anonymous&can&also&pose&a&global&threat.&
Who&are&the&Hackers?&
IV.&Industry&Demand&and&Outlook&
18&
Outlook&on&Cyber&A`acks&and&ProtecLon&Strategy&
Threat&of&Cyber&A^ack& Cyber&Security&Index&(HXR)&responds&to&Cyber&Threats&
! Cyber&a`acks&top&the&list&of&threats&facing&the&US&this&year&! NaLonal&intelligence&director&James&Clapper&in&threat&
assessment&for&Congress:&&! Cyber&threats&to&are&“increasing&in&frequency,&scale,&
sophisLcaLon&and&severity&of&impact.”&! Methods&of&a`ack&&&the&systems&targeted&also&expanding&in&
diversity&and&intensity&! White&House&cybersecurity&summit&&
! President&Obama&stressed&the&need&for&companies&and&governments&to&do&more&
! As&frequency&of&hacks&increases,&companies&that&miLgate&the&damage&have&rallied&on&the&stock&market&
! Prominent&companies&with&huge&hacks&in&past&year&and&a&half&! Anthem&! Sony&! Home&Depot&! Target&
! Several&leading&cybersecurity&stocks&reported&impressive&Q4&revenues&! Boost&in&business&from&increasing&a`acks&
! Firms&assuming&hacking&will&occur&and&preparing&response&process&
! Cost&of&geung&breached&is&expected&to&grow&in&2015&
Demand&for&Cybersecurity& ! Jan&2014:&Target,&Neiman&Marcus&and&Michaels&systems&are&hacked,&customers&credit&card&info&stolen&
! May&21:&Hackers&stole&personal&records&of&233&million&ebay&users&
! Jun&11:&Feedly&and&Evernote&experience&denialkofkservice&a`acks&
! Jun&16:&Hackers&hold&Domino’s&Pizza&to&ransom&over&600,000&customer&records&
! Jul&31:&Backoff&malware&compromises&major&retailers&! Aug&21:&Homeland&Security&Law&InsLtute&panel&discusses&
cyberkthreats&to&government&! Sept&17:&Senate&reveals&US&TransportaLon&Command&was&
hacked&by&China&! Sept&30:&Xsser&mRAT&Trojan&infects&Chinese&protestors&! Nov&24:&Sony&Pictures&is&Hacked&! Jan&2015:&Obama&unveils&cybersecurity&plan&
Source:&investmentu.com&
19&
‘Lean&Forward’&Cyber&Defense&
Ac>ve&Defense&
Organiza>ons&using&Proac>ve&strategy& Collec>ve&Proac>ve&Cybersecurity&
! In&2014,&more&than&a&half&billion&total&records&stolen&! Firms&realizing&need&to&take&a&proacLve&stance&
! ConvenLonal&network&defenses&can’t&prevent&breaches&like&the&Sony&hack&
! ‘Leankforward&approach’&or&‘acLve&defense’&encouraged&! ‘Hacking&back’&
! Using&technology&to&pursue&culprits,&retrieve&stolen&data,&and&potenLally&shut&down&hackers&
! A&strategy&that&more&firms&are&considering&
! Firms&have&developed&proacLve&products&to&be`er&safeguard&customers&
! New&prevalence&of&advanced&detecLon&systems&and&analyLcs&products&
! Implies&private§or&is&taking&innovaLve&measures&to&thwart&a`acks&
! NIST&Cybersecurity&Framework&! Encouraging&private&firms&to&idenLfy&and&spread&
proacLve&cybersecurity&best&pracLces&! President&Obama’s&recent&announcement&of&new&
informaLon&sharing&mechanisms&may&help&spur&this&diffusion&
! More&stakeholders&now&engage&in&collecLve&proacLve&cybersecurity&measures&
! OperaLon&SMN&! Group&of&private&firms&&! First&private&sponsored&interdicLon&against&a&state&
sponsored&advanced&threat&group&(allegedly&based&in&China)&
! Detected&and&miLgated&the&damage&to&~43,000&systems&! This&helps&generate&posiLve&network&effects&! Encourages&more&firms&to&proacLvely&parLcipate&
&
Timely&DetecLon?&&
Difficult&
Timely&Response?&
Cyber&Threat&Chart&
&Probable&
20&
2015&PredicLons&for&Cybersecurity&Industry&
Expecta>on&for&CyberSecurity&market& 2015&Cyber&security&predic>ons&! New&a`ack&vectors&&&playorms&
! New&bugs&in&old,&widelykused&code&! Apple,&for&example:&increasing&enterprise&footprint&
means&malware&writers&will&adjust&their&toolset&! EvoluLon&of&exisLng&cybersecurity&soluLons&
! Automated&security&tools&and&soluLons&no&longer&efficient&if&used&independently&
! Hackers&divert&invesLgators&by&planLng&evidence&that&points&to&an&unassociated&a`acker&
! IoT&! Wearables&health&data&breach&may&spur&FTC&acLon&! Businesses&wanLng&to&use&wearablekbased&employee&
wellness&programs&must&keep&this&in&mind&! Mobile&playorms&
! Mobile&payment&systems&such&as&Apple&Pay&taking&off&! These&playorms&are&increasingly&a`racLve&to&hackers&
! Highkprofile&security&breaches&with&prominent&data&leaks&will&conLnue&to&make&news&
&Big&Data&and&Analy>cs&
! Rise&of&‘salami&a`acks’&! Vast&amount&of&data&being&collected&on&people&through&
various&cyber&playorms&are&being&pieced&together&! This&threatens&individuals,&governments,&and&
corporaLons&
Advanced&Threat&Intelligence&
! FireEye&specializes&in&soluLons&for&prevenLng&&&responding&to&advanced&‘stealth’&a`acks&
! OrganizaLons&invested&in&threat&detecLon&and&response&heavily&in&late&2014&and&this&trend&is&expected&to&conLnue&
21&
Employment&of&Cybersecurity&Services(
! Next&generaLon&security&products&require&professionals&that&can&use&them&effecLvely&and&efficiently&! Target&breach&as&example&where&lack&of&talent&and&skill&led&to&successful&hacking&a`ack&! JP&Morgan&
! Internal&security&team&failed&to&implement&two&factor&authenLcaLon&on&a&few&servers&! Company&like&JPM&failing&to&get&the&right&security&talent&in&house&! Much&bigger&challenge&that&much&smaller&enterprises&will&face&as&number&of&breaches&increase&&
! MeeLng&this&need,&FireEye&as&a&Service&(FaaS)&will&be&posiLve&driver&of&performance&
FaaS&
22&
Market&For&FireEye&
Number&of&Breaches&per&Category&
nPulse&and&Government&Clients&
Market&Demand&
! AcquisiLon&of&nPulse&provided&access&to&Capture&Prove&eXtreme&(CPX),&which&is&used&in&Department&of&Homeland&Security’s&EINSTEIN&3&program&
! Acquiring&this&technology&allowed&FireEye&to&strengthen&foothold&in&government&agencies&! FireEye&penetraLng&financial&and&government&verLcals&&
! Department&of&the&Navy,&of&Health&and&Human&Services,&of&Commerce,&etc.&! Aoer&invesLng&into&FireEye&products,&these&agencies&make&a&commitment&to&also&invest&in&personnel&that&can&
effecLvely&use&the&appliance&! Hard&for&compeLtors&to&replace&incumbents&
! Products&customized&to&unique&network&environments&! Risk&in&changing&vendors,&cost&of&a&breach&too&high&
! Big&names&enlisted&FireEye&for&help&this&past&year&! Sony&! Target&! Anthem&
! FireEye&and&Mandiant&have&become&a&gokto&team&! Hundreds&of&corporaLons&looking&to&clean&up&the&aoermath&of&
security&intrusions&
V. &Financials&&&Valua>on&
24&
Stock&Price&
20&
30&
40&
50&
60&
70&
80&
90&
100&
Sepk13& Deck13& Mark14& Junk14& Sepk14& Deck14&
FEYE&Stock&Price&Since&IPO&
25&
Piper&Jaffray&CIO&Survey&Results&
26&
Piper&Jaffray&CIO&Survey&Results&
27&
FireEye&Financials&&& FY11& FY12& FY13& FY14& FY15E& FY16E& FY17E& FY18E& FY19E&
Revenue& 33.70& 83.30& 161.60& 425.70& 619.80& 855.50& 1,155.80& 1,532.00& 1,924.00&Growth&%,&YoY& 186.10%& 147.50%& 93.90%& 163.50%& 45.60%& 38.00%& 35.10%& 32.60%& 25.60%&Gross&Profit& 26.40& 65.70& 113.80& 250.60& 449.50& 630.80& 842.50& 1,156.70& &&Margin&%& 78.40%& 78.80%& 70.40%& 58.90%& 72.50%& 73.70%& 72.90%& 75.50%& &&EBITDA& k12.40& k26.70& k151.50& k385.10& k189.30& k119.60& 0.60& k4.00& 134.00&Margin&%& k37.00%& k32.00%& k93.80%& k90.50%& k30.50%& k14.00%& 0.10%& k0.30%& 7.00%&
Adjusted&EPS& k& k& k3.62& k3.04& k1.85& k1.38& k0.72& k0.21& k0.55&&& && && && && && && && && &&
CFO& 5.10& 21.50& k69.80& k131.30& k129.00& k44.40& 37.70& k& k&CapEx& 5.20& 18.80& 57.60& 67.70& 72.90& 76.70& 99.00& 108.00& 118.00&
Free&Cash&Flow& k0.10& 2.70& k127.30& k199.00& k201.80& k121.10& k61.30& && &&
Company& Ticker& Market&Cap& Price&to&Sales& Revenue&Growth&(%&YoY)&
FireEye& FEYE& 6.66B& 10.12& 149.70%&
Palo&Alto&Networks& PANW& 11.46B& 11.35& 50.06%&
Qualys& QLYS& 1.53B& 8.78& 25.94%&
Infoblox& BLOX& 1.30B& 4.13& 22.05%&
ForLnet& FTNT& 5.54B& 5.83& 26.29%&
Juniper&Networks& JNPR& 9.73B& 2.15& k13.51%&
Proofpoint& PFPT& 2.21B& 8.53& 37.61%&
AVG&Technologies& AVG& 1.19B& 2.78& k1.70%&
28&
ValuaLon&
It’s&very&hard&to&find&a&way&to&value&a&company&with&more&than&100%&YoY&revenue&growth,&but&bookings&are&a&good&proxy&for&the&amount&of&business&FEYE&will&do&over&the&next&year.&&The&actual&valua>on&can&easily&exceed&the&Bull&case,&and&we&believe&it&very&well&may.&
Case& Mul>ple& FY15&Billings& Market&Cap& Implied&Share&Price& Upside&
Bear& 7x& $820MM& $5.7B& $37.89& k14.40%&
Base& 9x& $850MM& $7.6B& $50.53& 14.14%&
Bull& 11x& $900MM& $9.9B& $65.82& 48.68%&
