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Gitlab Inc. (GTLB) stock analysis

GTLBNasdaqServices-Prepackaged SoftwareFiscal year ends January 31
Financials through Q2 FY2027, quarter ended Jul 31, 2026Last filing: 10-Q on Sep 2, 2026Score 10/3013% above fair value
$47.73+0.45 (+0.95%)

Close on Nov 13, 2026Market cap $7.95BP/E –Yield –

StockData Score

Prices as of Nov 13, 2026How the score works

Value0Growth3Performance1Health6Dividend0

Mixed10 of 30 checks passed

Gitlab passes 10 of the 30 checks behind our score; 11 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
0/6
Growth
3/6
Past performance
1/6
Financial health
6/6
Dividend
0/6

What stands out

  • No debt

    Gitlab has no borrowings on its latest balance sheet.

  • Revenue growing 10%+ a year

    Revenue grew 31.1% a year over the last three fiscal years.

  • Interest well covered

    No meaningful interest expense to cover.

  • Debt covered by cash flow

    There is no debt to cover.

What to watch

  • Margin of safety under 20%

    The price is 13.5% above fair value, so there is no margin of safety.

  • Trading above fair value

    The share price of $47.73 is above our fair value estimate of $42.06.

  • Return on equity under 15%

    Return on equity was -5.9% over the last twelve months and averaged -30.2% over five years; we look for 15% on both.

  • Return on capital under 10%

    Return on invested capital was -10.9%, below the 10% that usually covers the cost of capital.

Valuation0/6

  • P/E against its history

    Not enough price and earnings history to compare.

  • P/E against the industry

    Needs positive earnings and enough profitable companies in the industry.

  • EV/EBITDA against its history

    Needs positive EBITDA and price history.

  • P/B above the industry

    Gitlab's price-to-book of 8.59 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 3.05.

  • Trading above fair value

    The share price of $47.73 is above our fair value estimate of $42.06.

  • Margin of safety under 20%

    The price is 13.5% above fair value, so there is no margin of safety.

Growth3/6

  • Revenue growing 10%+ a year

    Revenue grew 31.1% a year over the last three fiscal years.

  • EPS growth over 3 years

    Needs positive EPS three years ago and today.

  • Earnings acceleration

    Needs positive net income now, a year ago and five years ago.

  • Growing faster than the industry

    Revenue grew 23.0% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.

  • Guidance raised

    Gitlab raised its FY 2027 Non-GAAP operating income outlook on Sep 1, 2026.

  • Gross margin slipping

    Gross margin was 85.8% over the last twelve months, against 88.5% a year earlier.

Past performance1/6

  • Return on equity under 15%

    Return on equity was -5.9% over the last twelve months and averaged -30.2% over five years; we look for 15% on both.

  • Return on capital under 10%

    Return on invested capital was -10.9%, below the 10% that usually covers the cost of capital.

  • Return on equity below the industry

    Gitlab's return on equity of -5.9% is below the Computer Programming, Data Processing, and Other Computer Related Services median of -1.1%.

  • Earnings over 5 years

    Needs positive net income five years ago and in the latest year.

  • Net margin above its 5-year average

    Net margin was -5.0% over the last twelve months, against a 5-year average of -36.5%.

  • Net margin below the industry

    Gitlab's net margin of -5.0% is below the Computer Programming, Data Processing, and Other Computer Related Services median of -4.7%.

Financial health6/6

  • No debt

    Gitlab has no borrowings on its latest balance sheet.

  • Debt not rising

    With no debt today, leverage cannot have risen.

  • Debt covered by cash flow

    There is no debt to cover.

  • Interest well covered

    No meaningful interest expense to cover.

  • Short-term assets cover short-term debts

    Current assets are 2.41 times current liabilities.

  • Low bankruptcy risk

    The Altman Z-score is 6.97; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

  • No dividend

    Gitlab has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$42.06

The share price is 13% above this estimate.

20%+ below
Near fair value
20%+ above
$47.73Price$42.06Fair value
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
P/B5.9×8.7×3.1×$32.6650%
P/S8.1×13.4×2.8×$51.4650%
Earnings powerleft out, too far from the others15.1% cost of equity––$2.60–
Fair value$42.06100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/B at month end
  • Own 5-year median 8.7
  • Computer Programming, Data Processing, and Other Computer Related Services median 3.1

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day
$178.88M
Value traded per 1% price move
$87.85M

Downside

High risk

Typical loss in a bad month
28.0%
Volatility (annualized)
59%
Sharpe ratio, 1 year
-0.03
Beta to the S&P 500 (5Y)
2.02

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2019 to 2026

Gross margin

87.4%−0.5 pts over 5 years

Operating margin

-7.4%+133.2 pts over 5 years

Net margin

-5.9%+120.4 pts over 5 years

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