After the Cybersecurity Crash: Which Stocks Still Look Expensive?

Cybersecurity names have pulled back sharply, but price alone does not equal value. In many cases, the market is still pricing in aggressive long-term growth despite cooling sentiment across software. As investors rotate toward cash flow and profitability, the sector is entering a far more selective phase. The coming quarters may reveal whether these stocks have truly reset or still have room to fall.

Cybersecurity has been one of the absolute stars of the technology market in recent years. The combination of increasing digitisation, the advent of cloud, remote working and the exponential growth of cyber threats has created an environment in which security software has seen above-average growth in both revenues and margins. According to Gartner 's long-term projections, global cybersecurity spending should continue to grow at double-digit rates in the coming years, which has long supported very high valuations for the sector as a whole.

However, 2025 and early 2026 have brought a…