Assessing SentinelOne (S) Valuation After New Google Cloud And LevelBlue AI Security Partnerships #AI

SentinelOne (S) has drawn fresh attention after announcing a multi-year collaboration with Google Cloud, a global partnership with LevelBlue, and new AI-focused security offerings showcased at RSA Conference 2026.

See our latest analysis for SentinelOne.

Despite the Google Cloud collaboration, LevelBlue partnership, and new AI offerings showcased at RSA, SentinelOne’s recent momentum has been weak, with a 90-day share price return of 16.3% and a 1-year total shareholder return of 33.2%.

If you want to see how other AI-focused names are trading around similar themes, it is worth scanning 34 AI small caps

With the shares down over the past year despite new Google Cloud and LevelBlue partnerships and fresh AI products, is SentinelOne now trading below its potential, or is the market already pricing in the next leg of growth?

Most Popular Narrative: 32.2% Undervalued

SentinelOne’s most followed narrative pegs fair value at $18.56 versus a last close of $12.58, so the story assumes a lot of upside is still on the table.

SentinelOne’s robust innovation in AI-driven, autonomous security, highlighted by substantial enterprise adoption of Purple AI and the AI-native SIEM platform, strongly positions the company to capture growing budgets as cyber threats become more sophisticated, likely driving sustained revenue growth and improving gross margins as their differentiated offerings enable premium pricing.

Read the complete narrative. Read the complete narrative.

Want to see what is baked into that valuation gap? The narrative leans on brisk revenue expansion, margin repair, and a rich future earnings multiple. The full breakdown shows how those levers combine into the $18.56 fair value call.

Result: Fair Value of $18.56 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, there are still meaningful watchpoints, including ongoing losses with net income at a US$450.7 million loss and heavy dependence on large cloud and channel partners.

Find out about the key risks to this SentinelOne narrative.

Another Angle On Valuation

The first narrative leans on a fair value of $18.56 and sees SentinelOne as 32.2% undervalued. Yet on a simple P/S lens, the picture is less straightforward. SentinelOne trades on a 4.3x P/S, above the US Software average of 3.3x, but below peers at 5.9x and a fair ratio of 4.7x. This mix of a premium to the broader industry, a discount to peers, and a relatively small gap to the fair ratio may point to either elevated valuation risk relative to that fair value estimate or a more balanced opportunity, depending on how execution develops.

See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

With mixed signals on growth, margins, and partnerships, opinions are clearly split. Consider acting while sentiment is still forming and review both sides in the 2 key rewards and 2 important warning signs

Looking for more investment ideas?

If SentinelOne has you thinking about what else might be worth a closer look, do not stop here. Widen your watchlist with a few focused idea lists.

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.

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