Research HubSoftware & Cloud ServicesN-able, Inc. (NABL)

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SEC 10-K / 10-Q Equity ResearchSoftware & Cloud ServicesTicker: NABL

N-able, Inc. (NABL) DCF Valuation & Fundamental Primer

N-able, Inc. (NABL) currently trades at $7.48 with an enterprise value of $1.10B. Our proprietary institutional model rates N-able, Inc. at 56/100 (Grade: B · Mixed Fundamental Profile). The current market price prices in an implied 5-year revenue CAGR of 22.2% vs. historical growth of 11.4% (Aggressive Growth Expectations Priced In).

GDA Quality Score

B56/100

Mixed Fundamental Profile

Share Price / DCF Base

$7.48 / $4.43

Enterprise Value

$1.67B

TTM Revenue

$466.1M (+11.4%)

Gross Margin

82.7%

Rule of 40 Score

23.3%

EV / TTM Revenue

3.6×

Structural Moat: Enterprise Software & Cloud Services Switching Costs & Recurring Workflow Integration

Key Growth Catalyst: AI workflow automation, multi-module expansion across enterprise cohorts, and operating margin leverage at N-able, Inc..

Institutional fundamental teardown of N-able, Inc. (NABL) covering SEC 10-K/10-Q cash flow conversion, SBC dilution friction, and Reverse-DCF valuation hurdles.

Seed NABL in Interactive 3-Statement Model

Section 1 · Intrinsic Valuation Engine

N-able, Inc. (NABL) 3-Scenario DCF Valuation Range

WACC: 10.0% · Terminal Growth: 2.5% · Diluted Shares: 187.8M

bear Case DCFSensitivity

$1.56

Implied Equity Value:$293.6M

vs Current ($7.48):-79.1%

base Case DCFPrimary Benchmark

$4.43

Implied Equity Value:$831.9M

vs Current ($7.48):-40.8%

bull Case DCFSensitivity

$7.96

Implied Equity Value:$1.49B

vs Current ($7.48):+6.4%

Interactive What-If DCF SandboxSim Rule of 40: 23.4%

Stress-test NABL's 5-year growth, target FCF margin, WACC, terminal methodology, and SBC/dilution friction in real time.

Seed Custom Drivers in /model

1-Click Regimes:

5Y Revenue CAGR11.4%

2%Hist: 11.4%50%

Target FCF Margin12.0%

5%Base: 12%45%

WACC Discount Rate10.0%

6.5%Base: 10%14.5%

Terminal Growth (g)2.5%

1.0%Implies 13.7× Y5 FCF4.0%

Accounting Lens:

Simulated Implied Price$4.46

Spread vs Market-40.4%

Simulated EV$1.10B

Effective FCF Margin12.0%

Simulated 5-Year Cash Flow Trajectory (Unlevered FCF vs. Discounted PV)Cumulative 5Y PV: $290.6M

Year 1$519.3M

FCF:$62.3M

PV:$56.6M

Year 2$578.5M

FCF:$69.4M

PV:$57.4M

Year 3$644.4M

FCF:$77.3M

PV:$58.1M

Year 4$717.9M

FCF:$86.1M

PV:$58.8M

Year 5$799.7M

FCF:$96.0M

PV:$59.6M

Enterprise Value Composition Bridge$1.10B

Split between 5-Year Explicit Cash Flows and Discounted Terminal Value

5Y Explicit PV: $290.6M (26.3%)Terminal PV: $814.4M (73.7%)

(+) Balance Sheet Cash & Equivalents+$101.4M

(−) Total Debt Obligations−$369.0M

(=) Implied Equity Value (187.8M shs)$837.3M

2D Institutional Valuation Sensitivity Heatmap

Implied share price & upside/downside spread across 25 valuation states (Current Price: $7.48).

WACC \ Terminal	1.5%	2.0%	2.5%	3.0%	3.5%
8.5%	$5.12 -32%	$5.52 -26%	$5.99 -20%	$6.55 -12%	$7.22 -3%
9.3%	$4.45 -40%	$4.77 -36%	$5.14 -31%	$5.57 -26%	$6.06 -19%
10.0%	$3.91 -48%	$4.17 -44%	$4.46 -40%	$4.79 -36%	$5.17 -31%
10.8%	$3.46 -54%	$3.67 -51%	$3.90 -48%	$4.17 -44%	$4.47 -40%
11.5%	$3.07 -59%	$3.24 -57%	$3.44 -54%	$3.65 -51%	$3.90 -48%

Section 2 · Fundamental Underwriting

Institutional Software Quality Scorecard (56/100 · Grade B)

Mixed Fundamental Profile

Viable recurring software business but carries notable dilution, lower margins, or higher leverage.

Cash Conversion13 / 25

Actual: 68% of EBITTarget: Target: ≥100%

Positive FCF but lower conversion efficiency due to capex or timing

Dilution Friction16 / 25

Actual: 9.7% of RevTarget: Target: ≤8%

Standard software SBC dilution; modest equity transfer to employees

Unit Economics15 / 25

Actual: 83% GM / R40: 23%Target: Target: ≥75% GM / ≥40% R40

Solid gross margins with potential for operating leverage at scale

Balance Sheet12 / 25

Actual: -$267.6M Net DebtTarget: Target: Net Cash > 0

Moderate leverage or cash burn; monitor liquidity runway

Core Investment Strengths & Moats

Key Operational & Dilution Risks

Section 3 · Expectations Investing

Reverse-DCF Solver: What Growth is Priced Into NABL?

Aggressive Growth Expectations Priced In

The current share price demands 22.2% 5-year CAGR (38.2% net of SBC & dilution)—a +10.8% acceleration over historical run-rate (11.4%). Any growth slowdown risks valuation multiple contraction.

Implied 5-Year Revenue CAGR

22.2%

Required to justify $1.67B EV

Historical Run-Rate CAGR

11.4%

Audited multi-year top-line trajectory

Growth Hurdle Spread

+10.8%

Implied hurdle minus historical growth

Implied FCF Margin @ Hist. Growth

18.2%

Steady-state FCF margin needed at current CAGR

Institutional Dilution-Adjusted Hurdle Lens

Headline Reverse-DCF ignores Stock-Based Compensation (9.7% of revenue) and annual share dilution (1.2%/yr). Accounting for both requires 38.2% 5-year revenue CAGR to justify $7.48/sh on a true per-share economic cash flow basis.

True Economic Hurdle38.2%

SBC & Dilution Hurdle Tax+16.0% / yr

Section 4 · 5-Year Forecast Schedule

N-able, Inc. (NABL) 5-Year Fundamental Forecast

Customize in Live Engine

Statement Line Item	TTM Audited Base	TTM	Y1	Y2	Y3	Y4	Y5
Revenue	$466.1M	$466.1M	$519.2M	$578.3M	$644.1M	$717.4M	$799.0M
Gross Profit	$385.5M	$385.5M	$429.3M	$478.2M	$532.6M	$593.2M	$660.7M
Operating Income (EBIT)	$82.4M	$82.4M	$91.7M	$102.2M	$113.8M	$126.8M	$141.2M
Stock-Based Compensation (SBC)	$45.4M	$45.4M	$50.5M	$56.3M	$62.7M	$69.8M	$77.7M
Unlevered Free Cash Flow (FCF)	$55.7M	$55.7M	$62.0M	$69.1M	$77.0M	$85.7M	$95.5M
SBC-Adjusted True Cash Flow	$10.4M	$10.3M	$11.5M	$12.8M	$14.3M	$15.9M	$17.7M

Section 5 · Relative Valuation Multiples & Regression

Software & Cloud Services Peer Comparables & Rule of 40 Regression

Click any peer node or ticker to open its dedicated equity research report

Rule of 40 vs. EV / Revenue Multiple Regression

OLS Fit: EV/Rev = -9.3 + 0.42 × (Rule of 40) · R² = 66%

Stocks below the gold regression line trade at a discount relative to their Rule of 40 compounding efficiency.

NABL Actual vs. Reg. Multiple3.6× vs 2.0× fair

Reg.-Implied Share Price$3.54 (+79.5% Premium)

NABLN-able, Inc.·Rule of 40: 23.3%·Actual EV/Rev: 3.6×·Regression Fair Multiple: 2.0×

+79.5% Above Trendline (Premium)Open NABL Report

Company	Ticker	Market Cap	TTM Revenue	Gross Margin	FCF Margin	Rule of 40	SBC % Rev	EV / Rev
N-able, Inc.	NABL	$1.40B	$466.1M	82.7%	11.9%	23.3%	9.7%	3.6×
ServiceNow	NOW	$152.61B	$10.98B	79.2%	31.1%	54.2%	15.9%	13.9×
Workday, Inc.	WDAY	$50.35B	$8.00B	75.0%	27.4%	43.9%	19.0%	6.4×
Salesforce	CRM	$217.10B	$37.90B	77.2%	32.8%	42.8%	8.4%	5.8×
Datadog	DDOG	$46.05B	$2.68B	80.8%	31.1%	57.7%	21.3%	17.4×
Snowflake Inc.	SNOW	$71.79B	$3.63B	66.5%	25.2%	57.7%	40.8%	20.0×
Hubspot	HUBS	$19.89B	$2.63B	85.0%	21.3%	52.7%	19.2%	7.7×
Peer Cohort Median Benchmark (N=6)				78.2%	29.2%	53.5%	19.1%	10.8×

Section 6 · Downside Protection & Multiple Sensitivity

EV / Revenue Multiple Compression Stress Test

Multiple Scenario	EV / Revenue	Implied Enterprise Value	Implied Equity Value	Implied Share Price	Delta vs Current
Current Multiple	3.6×	$1.67B	$1.40B	$7.48	0.0%
-20% Multiple Compression	2.9×	$1.34B	$1.07B	$5.70	-20.0%
-35% Multiple Compression	2.3×	$1.09B	$819.4M	$4.36	-35.0%
Software Baseline Floor (5.0× EV/Rev)	5.0×	$2.33B	$2.06B	$10.99	+39.4%

Section 7 · Investor Diligence FAQ

Frequently Asked Questions: N-able, Inc. (NABL) Valuation

What is N-able, Inc. (NABL)'s intrinsic DCF valuation and implied share price?

Based on audited SEC 10-K/10-Q filings and a 5-year 3-statement discounted cash flow (DCF) model, N-able, Inc. (NABL) has a Base Case implied value of $4.43 per share (with a Bear Case of $1.56 and a Bull Case of $7.96), compared to its current price of $7.48. The model discounts projected free cash flows at a 10.0% WACC and a 2.5% terminal growth rate.

What is N-able, Inc. (NABL)'s Rule of 40 score and Free Cash Flow margin?

N-able, Inc. achieves a Rule of 40 score of 23.3%, combining a 11.4% revenue growth run-rate with a 12.0% TTM free cash flow margin on $466.1M in trailing twelve-month revenue. In the Software & Cloud Services peer cohort, the median Rule of 40 benchmark is 53.5%.

What revenue growth rate is priced into NABL stock according to Reverse-DCF analysis?

At $7.48 per share (Enterprise Value of $1.67B), our Reverse-DCF solver indicates the market is pricing in a 5-year implied revenue CAGR of 22.2%, compared to N-able, Inc.'s historical CAGR of 11.4%. Overall market expectations are rated as "Aggressive Growth Expectations Priced In".

How does N-able, Inc. compare to Software & Cloud Services software peers?

N-able, Inc. (NABL) earns an institutional Software Quality Score of 56/100 (Grade B — Mixed Fundamental Profile). Across its Software & Cloud Services peer group (NOW, WDAY, CRM, DDOG, SNOW), the cohort trades at a median EV/TTM Revenue multiple of 10.8× and a median gross margin of 78.2%.

How does Stock-Based Compensation (SBC) impact N-able, Inc. (NABL)'s valuation?

N-able, Inc. recorded $45.4M in TTM stock-based compensation (9.7% of revenue). When treating SBC as a cash-equivalent compensation expense, N-able, Inc.'s SBC-adjusted free cash flow yield is 0.7%, scoring 16/25 on our Shareholder Dilution Friction pillar.

N-able, Inc. (NABL) DCF Valuation & Fundamental Primer

WACC \ Terminal

1.5%

2.0%

2.5%

3.0%

3.5%

8.5%

$5.12

-32%

$5.52

-26%

$5.99

-20%

$6.55

-12%

$7.22

-3%

9.3%

$4.45

-40%

$4.77

-36%

$5.14

-31%

$5.57

-26%

$6.06

-19%

10.0%

$3.91

-48%

$4.17

-44%

$4.46

-40%

$4.79

-36%

$5.17

-31%

10.8%

$3.46

-54%

$3.67

-51%

$3.90

-48%

$4.17

-44%

$4.47

-40%

11.5%

$3.07

-59%

$3.24

-57%

$3.44

-54%

$3.65

-51%

$3.90

-48%

Statement Line Item

TTM Audited Base

TTM

Revenue

$466.1M

$519.2M

$578.3M

$644.1M

$717.4M

$799.0M

Gross Profit

$385.5M

$429.3M

$478.2M

$532.6M

$593.2M

$660.7M

Operating Income (EBIT)

$82.4M

$91.7M

$102.2M

$113.8M

$126.8M

$141.2M

Stock-Based Compensation (SBC)

$45.4M

$50.5M

$56.3M

$62.7M

$69.8M

$77.7M

Unlevered Free Cash Flow (FCF)

$55.7M

$62.0M

$69.1M

$77.0M

$85.7M

$95.5M

SBC-Adjusted True Cash Flow

$10.4M

$10.3M

$11.5M

$12.8M

$14.3M

$15.9M

$17.7M

Company

Ticker

Market Cap

TTM Revenue

Gross Margin

FCF Margin

Rule of 40

SBC % Rev

EV / Rev

N-able, Inc.

NABL

$1.40B

$466.1M

82.7%

11.9%

23.3%

9.7%

3.6×

ServiceNow

NOW

$152.61B

$10.98B

79.2%

31.1%

54.2%

15.9%

13.9×

Workday, Inc.

WDAY

$50.35B

$8.00B

75.0%

27.4%

43.9%

19.0%

6.4×

Salesforce

CRM

$217.10B

$37.90B

77.2%

32.8%

42.8%

8.4%

5.8×

Datadog

DDOG

$46.05B

$2.68B

80.8%

31.1%

57.7%

21.3%

17.4×

Snowflake Inc.

SNOW

$71.79B

$3.63B

66.5%

25.2%

57.7%

40.8%

20.0×

Hubspot

HUBS

$19.89B

$2.63B

85.0%

21.3%

52.7%

19.2%

7.7×

Peer Cohort Median Benchmark (N=6)

78.2%

29.2%

53.5%

19.1%

10.8×

Multiple Scenario

EV / Revenue

Implied Enterprise Value

Implied Equity Value

Implied Share Price

Delta vs Current

Current Multiple

3.6×

$1.67B

$1.40B

$7.48

0.0%

-20% Multiple Compression

2.9×

$1.34B

$1.07B

$5.70

-20.0%

-35% Multiple Compression

2.3×

$1.09B

$819.4M

$4.36

-35.0%

Software Baseline Floor (5.0× EV/Rev)

5.0×

$2.33B

$2.06B

$10.99

+39.4%

N-able, Inc. (NABL) 3-Scenario DCF Valuation Range

2D Institutional Valuation Sensitivity Heatmap

Institutional Software Quality Scorecard (56/100 · Grade B)

Core Investment Strengths & Moats

Key Operational & Dilution Risks

Reverse-DCF Solver: What Growth is Priced Into NABL?

N-able, Inc. (NABL) 5-Year Fundamental Forecast

Software & Cloud Services Peer Comparables & Rule of 40 Regression

Rule of 40 vs. EV / Revenue Multiple Regression

EV / Revenue Multiple Compression Stress Test

Frequently Asked Questions: N-able, Inc. (NABL) Valuation

What is N-able, Inc. (NABL)'s intrinsic DCF valuation and implied share price?

What is N-able, Inc. (NABL)'s Rule of 40 score and Free Cash Flow margin?

What revenue growth rate is priced into NABL stock according to Reverse-DCF analysis?

How does N-able, Inc. compare to Software & Cloud Services software peers?

How does Stock-Based Compensation (SBC) impact N-able, Inc. (NABL)'s valuation?

Related Software & Cloud Services Equity Research Reports

N-able, Inc. (NABL) 3-Scenario DCF Valuation Range

2D Institutional Valuation Sensitivity Heatmap

Institutional Software Quality Scorecard (56/100 · Grade B)

Core Investment Strengths & Moats

Key Operational & Dilution Risks

Reverse-DCF Solver: What Growth is Priced Into NABL?

N-able, Inc. (NABL) 5-Year Fundamental Forecast

Software & Cloud Services Peer Comparables & Rule of 40 Regression

Rule of 40 vs. EV / Revenue Multiple Regression

EV / Revenue Multiple Compression Stress Test

Frequently Asked Questions: N-able, Inc. (NABL) Valuation

What is N-able, Inc. (NABL)'s intrinsic DCF valuation and implied share price?

What is N-able, Inc. (NABL)'s Rule of 40 score and Free Cash Flow margin?

What revenue growth rate is priced into NABL stock according to Reverse-DCF analysis?

How does N-able, Inc. compare to Software & Cloud Services software peers?

How does Stock-Based Compensation (SBC) impact N-able, Inc. (NABL)'s valuation?

Related Software & Cloud Services Equity Research Reports