NTAP Valuation

NetApp Inc

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107.775

-0.645(-0.595%)1D

Overview
Forecast
Valuation
Earnings

NTAP Relative Valuation

NTAP's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, NTAP is overvalued; if below, it's undervalued.

Historical Valuation

NetApp Inc (NTAP) is now in the Fair zone, suggesting that its current forward PE ratio of 14.01 is considered Fairly compared with the five-year average of 14.35. The fair price of NetApp Inc (NTAP) is between 104.27 to 132.22 according to relative valuation methord.

Relative Value

Fair Zone

104.27-132.22

Current Price：107.78

Fair

14.01

Trailing

Forward

9.87

EV/EBITDA

NetApp Inc. (NTAP) has a current EV/EBITDA of 9.87. The 5-year average EV/EBITDA is 9.62. The thresholds are as follows: Strongly Undervalued below 6.71, Undervalued between 6.71 and 8.16, Fairly Valued between 11.08 and 8.16, Overvalued between 11.08 and 12.53, and Strongly Overvalued above 12.53. The current Forward EV/EBITDA of 9.87 falls within the Historic Trend Line -Fairly Valued range.

10.86

EV/EBIT

NetApp Inc. (NTAP) has a current EV/EBIT of 10.86. The 5-year average EV/EBIT is 10.82. The thresholds are as follows: Strongly Undervalued below 7.59, Undervalued between 7.59 and 9.21, Fairly Valued between 12.43 and 9.21, Overvalued between 12.43 and 14.04, and Strongly Overvalued above 14.04. The current Forward EV/EBIT of 10.86 falls within the Historic Trend Line -Fairly Valued range.

3.23

NetApp Inc. (NTAP) has a current PS of 3.23. The 5-year average PS is 2.80. The thresholds are as follows: Strongly Undervalued below 1.70, Undervalued between 1.70 and 2.25, Fairly Valued between 3.36 and 2.25, Overvalued between 3.36 and 3.91, and Strongly Overvalued above 3.91. The current Forward PS of 3.23 falls within the Historic Trend Line -Fairly Valued range.

12.64

P/OCF

NetApp Inc. (NTAP) has a current P/OCF of 12.64. The 5-year average P/OCF is 12.32. The thresholds are as follows: Strongly Undervalued below 8.81, Undervalued between 8.81 and 10.56, Fairly Valued between 14.08 and 10.56, Overvalued between 14.08 and 15.84, and Strongly Overvalued above 15.84. The current Forward P/OCF of 12.64 falls within the Historic Trend Line -Fairly Valued range.

13.68

P/FCF

NetApp Inc. (NTAP) has a current P/FCF of 13.68. The 5-year average P/FCF is 14.35. The thresholds are as follows: Strongly Undervalued below 10.68, Undervalued between 10.68 and 12.51, Fairly Valued between 16.18 and 12.51, Overvalued between 16.18 and 18.01, and Strongly Overvalued above 18.01. The current Forward P/FCF of 13.68 falls within the Historic Trend Line -Fairly Valued range.

NetApp Inc (NTAP) has a current Price-to-Book (P/B) ratio of 20.95. Compared to its 3-year average P/B ratio of 19.82 , the current P/B ratio is approximately 5.73% higher. Relative to its 5-year average P/B ratio of 22.88, the current P/B ratio is about -8.40% higher. NetApp Inc (NTAP) has a Forward Free Cash Flow (FCF) yield of approximately 6.13%. Compared to its 3-year average FCF yield of 6.25%, the current FCF yield is approximately -1.99% lower. Relative to its 5-year average FCF yield of 6.48% , the current FCF yield is about -5.45% lower.

20.95

P/B

Median3y

19.82

Median5y

22.88

6.13

FCF Yield

Median3y

6.25

Median5y

6.48

Competitors Valuation Multiple

The average P/S ratio for NTAP's competitors is 2.53, providing a benchmark for relative valuation. NetApp Inc Corp (NTAP) exhibits a P/S ratio of 3.23, which is 27.75% above the industry average. Given its robust revenue growth of 3.84%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Logitech International SA

Seagate Technology Holdings PLC

Performance Decomposition

Market capitalization of NTAP decreased by 10.72% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 17.45 to 19.63.

The secondary factor is the Revenue Growth, contributed 3.84%to the performance.

Overall, the performance of NTAP in the past 1 year is driven by Margin Expansion. Which is more sustainable.

3.84%

1.67B → 1.73B

Revenue Growth

12.49%

17.45 → 19.63

Margin Expansion

-27.05%

26.21 → 19.12

P/E Change

-10.72%