Stock fact sheet · data as of
Varonis Systems, Inc. (VRNS): fair value, margin of safety and Wheel Score
Ticker symbol VRNS · Technology · Software - Infrastructure · United States · Speculative
Is VRNS undervalued?
VRNS closed at 48.80 on 5 Nov 2026, more than 30% above the GLS average fair value of 20.74. Only 0 of the 1 models that produced a value sit above the price. By our models the shares are priced well beyond what the filed earnings, cash flow and book value support; the "below fair value" Wheel Trade Filter keeps names like this under 70.
The average is built from just 1 models (10 Cap) - the rest returned nothing because an input they need (dividends, free cash flow, book value) is zero or negative - so treat it with more caution than usual.
The nightly engine files VRNS under Speculative - it is losing money or its Piotroski health score is 3 or lower - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan.
Nine valuation models for VRNS
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | - | - | The most a defensive investor pays for the earnings and book value per share; no value tonight |
| Graham Growth | - | - | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields; no value tonight |
| Lynch | - | - | EPS × the earnings growth rate (PEG of 1), growth capped at 25%; no value tonight |
| GLS Growth | - | - | EPS compounded ten years at the blended growth rate, discounted back at 15% a year; no value tonight |
| 10 Cap | 20.74 | -57% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | - | - | Earnings power value: current EPS capitalised at 9% with no growth; no value tonight |
| Zombie (liquidation) | 0.9194 | -98% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 50.75 | +4% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Varonis Systems, Inc. scores only 3 of 9 on the Piotroski F-score, which fails the "Piotroski 6 or more" Wheel Trade Filter. A reading this low means several of the basic tests - positive earnings, positive operating cash flow, falling debt, no new share issuance - are not met. A GLS Moat score of 3.7/10 is a weak reading: the accounts do not show returns and margins that competitors have been unable to wear down, so the Moat part of the Wheel Score contributes little.
Returns on capital are thin or negative - ROIC -11.0%, ROE -21.6%, ROA -7.2% - with debt at 0.96 times equity and a free-cash-flow yield of 2.1%.
Varonis Systems, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Software as a Service 95%, Subscription and Circulation 2%, Maintenance 2% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 3 / 9 | ROIC | -11.0% |
|---|---|---|---|
| GLS Moat | 3.7 / 10 | ROE | -21.6% |
| Debt / equity | 0.96 | ROA | -7.2% |
| Free-cash-flow yield | 2.1% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 22: Weak
With a Wheel Score of 22 Varonis Systems, Inc. sits in the Weak band. It fails filter 2, a real business, not a gamble - speculative (a loss, or a weak Piotroski score); and filter 3, below fair value - trades 135% above our fair value; and filter 4, financially healthy - Piotroski 3/9 (under 6); and filter 5, can repay its debt - 3.5 years to repay its debt (over 3); and filter 7, a premium worth selling - implied volatility 23% (under 25%); Value (weak) is its weakest part.
Implied volatility on the near-the-money contracts is 23%, below the 25% the Wheel Trade Filter on premium asks for: a put pays too little to be worth selling. Chain open interest is 20,553 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 5.1M shares a day on a market cap of $5.6B, with a beta of 0.76 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that good.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Fails | speculative (a loss, or a weak Piotroski score) |
| 3 | Below fair value | Fails | trades 135% above our fair value |
| 4 | Financially healthy | Fails | Piotroski 3/9 (under 6) |
| 5 | Can repay its debt | Fails | 3.5 years to repay its debt (over 3) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Fails | implied volatility 23% (under 25%) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 135% above fair value | |
| Premium | Weak | implied volatility 23% | |
| Moat | Fair | moat 3.7/10 | |
| Health | Weak | Piotroski 3/9 | |
| Red Flags | Fair | Red Flags score 75/100 | |
| Option trading | Fair | 1,810 contracts a day, 20,553 open interest | |
| Stability | Good | beta 0.76, $5.6B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 2 Feb 2027, 89 days away - outside the window of a 30-45-day put sold today.
Analysts downgraded VRNS 7 times in the last 30 days with no upgrades; the latest action was a downgrade by B. Riley on 16 Oct 2026.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Software - Infrastructure
The 12 companies below are the closest to Varonis Systems, Inc. by market cap within the Software - Infrastructure industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| RELY Remitly Global, Inc. | 27.08 | 53.98 | +50% | 49Weak | $5.7B |
| MBGL Mobility Global Inc | 19.79 | 8.56 | -131% | 35Weak | $5.8B |
| WEX WEX Inc. | 180.11 | 170.16 | -6% | 35Weak | $5.9B |
| ACIW ACI Worldwide, Inc. | 59.19 | 67.27 | +12% | 44Weak | $6.0B |
| TENB Tenable Holdings, Inc. | 47.34 | 13.09 | -262% | 40Weak | $5.2B |
| BOX Box, Inc. | 44.05 | 34.44 | -28% | 43Weak | $6.0B |
| BB BlackBerry Limited | 8.76 | 3.00 | -192% | 41Weak | $5.1B |
| DOX Amdocs Limited | 43.66 | 77.34 | +44% | 84Good | $4.7B |
| ZVLO zvelo, Inc. | 252.00 | - | - | 15No options | $6.7B |
| FOUR Shift4 Payments, Inc. | 44.77 | 72.09 | +38% | 43Weak | $4.7B |
| PATH UiPath Inc. | 13.51 | 19.09 | +29% | 83Good | $7.0B |
| QLYS Qualys, Inc. | 210.89 | 177.94 | -19% | 41Weak | $7.3B |
Scan the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about VRNS
Is VRNS undervalued right now?
No: at 48.80 the stock trades 135% above the GLS average fair value of 20.74 (data as of 5 Nov 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of VRNS and what does it mean?
VRNS scores 22 out of 100 (Weak) - it fails Wheel Trade Filters 2, 3, 4, 5, 7. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for VRNS?
20.74 per share as of 5 Nov 2026 - the simple average of the 1 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Varonis Systems, Inc. report earnings next?
The next earnings report is due on 2 Feb 2027, 89 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does VRNS have listed options, and how liquid are they?
Yes. The nightly snapshot found 48 listed contracts with 20,553 open interest across all expiries and implied volatility of 23% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.