<div id="readability-page-1"><div>Thinking about what to do with your Fastly shares, or maybe wondering if it is time to jump in? You are far from alone. Fastly’s stock has delivered a wild ride over the last few years, and if you are trying to make sense of its recent swings, you are in the right place. With its closing price sitting at $8.33, Fastly has posted a modest 0.6% gain over the past week, but it is down about 2% over the last month and remains underwater for the year, off 9.6% since January. Still, the stock is up 13.6% over the past twelve months, and that is not even accounting for the steep 87.2% drop it has suffered over five years. This picture would make anyone pause and wonder where things might go next. Investors have been watching closely as Fastly works to sharpen its strategic focus and improve efficiency across its platform, especially in response to a competitive edge computing landscape and customer demand for faster, more secure online experiences. News of new leadership appointments and updates about Fastly’s product rollouts have helped nudge sentiment and could be signaling to the market that a turnaround is possible, though there is still a healthy dose of skepticism baked into the stock’s price. When we tally up the numbers, Fastly scores a 3 out of 6 on key value checks, suggesting it may be undervalued according to half of the frameworks investors generally look at. But how reliable is this mix-and-match approach to valuation? Next, we will break down what these scores actually mean, and later on, I will introduce a way to think about Fastly’s true value that goes beyond the usual numbers. Why Fastly is lagging behind its peers <h3>Approach 1: Fastly Discounted Cash Flow (DCF) Analysis</h3> A Discounted Cash Flow (DCF) model estimates a company's value by projecting its future cash flows and discounting them back to today's dollars. For Fastly, this means looking at the amount of cash the company generates now and is expected to generate in the future, then calculating what those potential earnings are actually worth today. Currently, Fastly’s Free Cash Flow stands at $7.98 Million. According to analyst estimates and forward projections, Fastly’s annual Free Cash Flow could rise to $12.95 Million by 2026 and $28.8 Million by 2027. Simply Wall St then extrapolates this growth further out for the next decade, with estimates climbing above $100 Million by 2034. Based on these cash flow projections, the DCF model calculates an intrinsic value for Fastly of $6.95 per share. With the stock currently changing hands at $8.33, Fastly is trading at a 19.9% premium to what its future cash flows appear to justify. This suggests that, at least through the lens of this model, Fastly is overvalued right now. Result: OVERVALUED Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Fastly. <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/0181ecc4-ca36-4518-852e-47554ab5face/chart/dcf?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/0181ecc4-ca36-4518-852e-47554ab5face/chart/dcf"/><figcaption>FSLY Discounted Cash Flow as at Oct 2025</figcaption></figure> Our Discounted Cash Flow (DCF) analysis suggests Fastly may be overvalued by 19.9%. Find undervalued stocks or create your own screener to find better value opportunities. <h3>Approach 2: Fastly Price vs Sales</h3> For technology companies like Fastly, which are investing for growth but not yet generating consistent profits, the Price-to-Sales (P/S) ratio is often a more meaningful metric than earnings-based multiples. This is because sales figures more accurately capture business traction and potential, while profit margins may remain low or negative during growth phases. Growth expectations and risk both play an important role in setting what is considered a “normal” P/S ratio. Companies with rapid revenue expansion and strong competitive positions can often support higher ratios. Those facing uncertainty or industry headwinds may see lower multiples justified. Right now, Fastly trades at a P/S ratio of 2.15x, noticeably below the IT industry’s average of 2.79x and far below the peer group average of 7.63x. However, simply comparing to these averages can be misleading because it does not fully account for Fastly’s unique characteristics. This is where Simply Wall St’s Fair Ratio comes in. The proprietary Fair Ratio, calculated at 2.45x for Fastly, considers not just industry and size but also the company’s growth outlook, profit margins, risk profile, and other important factors. This approach tends to offer a clearer, more tailored view of what would be a reasonable valuation for Fastly specifically compared to blunt peer averages. With Fastly’s actual P/S multiple of 2.15x sitting only a fraction below its Fair Ratio of 2.45x, the stock appears priced about right according to this method. Investors are not paying a significant premium or getting a major bargain based on where Fastly stands today. Result: ABOUT RIGHT <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/0181ecc4-ca36-4518-852e-47554ab5face/chart/ps-multiple-vs-industry?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/0181ecc4-ca36-4518-852e-47554ab5face/chart/ps-multiple-vs-industry"/><figcaption>NYSE:FSLY PS Ratio as at Oct 2025</figcaption></figure> PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth. <h3>Upgrade Your Decision Making: Choose your Fastly Narrative</h3> Earlier we mentioned that there is an even better way to understand valuation. Let us introduce you to Narratives. A Narrative is your unique investment story, a clear and personalized perspective on a company, where you combine your understanding of its business, growth prospects, risks, and future potential to justify your assumed fair value, revenue, earnings, and margin forecasts. Narratives connect Fastly’s story to a proper financial forecast, translating your outlook into a meaningful fair value that you can easily compare to today’s share price. On Simply Wall St, Narratives are accessible to everyone via the Community page, making it simple for millions of investors to create, share, and see different perspectives instantly. With Narratives, you can quickly weigh whether Fastly is a buy or a sell by comparing your personal Fair Value to the current market price and seeing how your thesis stacks up against the community. Narratives are kept up to date automatically when new news or financial results are released, so your analysis evolves as circumstances change. For example, some investors see Fastly’s fair value as high as $10 if they believe its edge-cloud growth story, while others set it as low as $6 if they are worried about competitive threats and margin pressure. Narratives capture these views, putting you in control of your investment decisions. Do you think there's more to the story for Fastly? Create your own Narrative to let the Community know! <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/0181ecc4-ca36-4518-852e-47554ab5face/chart/community-fair-value?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/0181ecc4-ca36-4518-852e-47554ab5face/chart/community-fair-value"/><figcaption>NYSE:FSLY Community Fair Values as at Oct 2025</figcaption></figure> This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.</div></div>

FSLY

Fastly's stock has seen fluctuations, currently priced at $8.33, with a modest gain of 0.6% over the past week but down 2% for the month. Despite a 13.6% increase over the past year, it remains 9.6% lower since January. Analysts suggest Fastly may be overvalued by 19.9% based on Discounted Cash Flow analysis, while its Price-to-Sales ratio of 2.15x is below industry averages. Leadership changes and strategic focus may signal potential for improvement, but skepticism remains among investors.

- Fastly's stock is currently priced at $8.33, showing a modest gain of 0.6% over the past week but down 9.6% since January.  
- A Discounted Cash Flow analysis suggests Fastly is overvalued by 19.9%, while its Price-to-Sales ratio indicates it is priced about right compared to industry averages.  
- Investors are encouraged to create personalized Narratives to assess Fastly's fair value, reflecting their unique perspectives on the company's growth potential and risks.

Is Fastly at a Turning Point After Leadership Changes and Modest Stock Rebound?