Varonis (VRNS) Stock May Be Reasonable On Its $6.3B Buyout Deal

Varonis Systems shares have climbed strongly this year, and a pending US$6.3b cash buyout now puts an explicit price tag on the cybersecurity specialist. With the stock last closing at US$48.72, the key issue is whether that takeover valuation lines up with the cash flows the business can generate. The share price is up 52.1% year to date. This puts real weight on the question of how much of Varonis Systems’ future cash generation is already reflected in today’s level. Proofpoint’s proposed...