UBS: Cybersecurity valuation exceeds pandemic peak, Q3 earnings must beat expectations

According to Chaoxiang Research, UBS's September 28, 2026 research report indicates that the cybersecurity sector's current market-cap-weighted enterprise value to next 12-month free cash flow stands at 62x, while enterprise value to next 12-month revenue is at 15x, both exceeding levels seen during the COVID era. Outside of CrowdStrike, Fortinet, Palo Alto Networks, and Qualys, most vendors experienced no acceleration in second-quarter revenue and billings growth, with third-quarter guidance proving broadly flat overall. Since the April 7 launch of Mythos, cybersecurity stocks excluding those four companies have risen by an average of 62%.