NTGR PE Ratio & Valuation,Is NTGR Overvalued

NTGR Relative Valuation

NTGR'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, NTGR is overvalued; if below, it's undervalued.

Historical Valuation

NETGEAR Inc (NTGR) is now in the Fair zone, suggesting that its current forward PS ratio of 0.99 is considered Fairly compared with the five-year average of 8.25. The fair price of NETGEAR Inc (NTGR) is between 18.44 to 27.04 according to relative valuation methord.

Relative Value

Fair Zone

18.44-27.04

Current Price：23.29

Fair

140.22

57.43

EV/EBITDA

NETGEAR Inc. (NTGR) has a current EV/EBITDA of 57.43. The 5-year average EV/EBITDA is -15.27. The thresholds are as follows: Strongly Undervalued below -163.46, Undervalued between -163.46 and -89.36, Fairly Valued between 58.82 and -89.36, Overvalued between 58.82 and 132.92, and Strongly Overvalued above 132.92. The current Forward EV/EBITDA of 57.43 falls within the Historic Trend Line -Fairly Valued range.

-53.31

EV/EBIT

NETGEAR Inc. (NTGR) has a current EV/EBIT of -53.31. The 5-year average EV/EBIT is 7.90. The thresholds are as follows: Strongly Undervalued below -81.93, Undervalued between -81.93 and -37.01, Fairly Valued between 52.81 and -37.01, Overvalued between 52.81 and 97.73, and Strongly Overvalued above 97.73. The current Forward EV/EBIT of -53.31 falls within the Undervalued range.

0.99

NETGEAR Inc. (NTGR) has a current PS of 0.99. The 5-year average PS is 0.81. The thresholds are as follows: Strongly Undervalued below 0.35, Undervalued between 0.35 and 0.58, Fairly Valued between 1.03 and 0.58, Overvalued between 1.03 and 1.26, and Strongly Overvalued above 1.26. The current Forward PS of 0.99 falls within the Historic Trend Line -Fairly Valued range.

184.05

P/OCF

NETGEAR Inc. (NTGR) has a current P/OCF of 184.05. The 5-year average P/OCF is 30.09. The thresholds are as follows: Strongly Undervalued below -122.77, Undervalued between -122.77 and -46.34, Fairly Valued between 106.51 and -46.34, Overvalued between 106.51 and 182.94, and Strongly Overvalued above 182.94. The current Forward P/OCF of 184.05 falls within the Strongly Overvalued range.

-103.79

P/FCF

NETGEAR Inc. (NTGR) has a current P/FCF of -103.79. The 5-year average P/FCF is -2.29. The thresholds are as follows: Strongly Undervalued below -85.53, Undervalued between -85.53 and -43.91, Fairly Valued between 39.33 and -43.91, Overvalued between 39.33 and 80.94, and Strongly Overvalued above 80.94. The current Forward P/FCF of -103.79 falls within the Strongly Undervalued range.

NETGEAR Inc (NTGR) has a current Price-to-Book (P/B) ratio of 1.36. Compared to its 3-year average P/B ratio of 1.06 , the current P/B ratio is approximately 28.09% higher. Relative to its 5-year average P/B ratio of 1.14, the current P/B ratio is about 18.88% higher. NETGEAR Inc (NTGR) has a Forward Free Cash Flow (FCF) yield of approximately -1.96%. Compared to its 3-year average FCF yield of 8.64%, the current FCF yield is approximately -122.72% lower. Relative to its 5-year average FCF yield of 6.44% , the current FCF yield is about -130.47% lower.

1.36

P/B

Median3y

1.06

Median5y

1.14

-1.96

FCF Yield

Median3y

8.64

Median5y

6.44

Competitors Valuation Multiple

The average P/S ratio for NTGR's competitors is 1.39, providing a benchmark for relative valuation. NETGEAR Inc Corp (NTGR) exhibits a P/S ratio of 0.99, which is -28.82% above the industry average. Given its robust revenue growth of 0.93%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of NTGR decreased by 13.16% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -13.96 to -26.72.

The secondary factor is the Revenue Growth, contributed 0.93%to the performance.

Overall, the performance of NTGR in the past 1 year is driven by P/E Change. Which is more unsustainable.

0.93%

182.85M → 184.56M

Revenue Growth

-105.57%

46.53 → -2.59

Margin Expansion

91.48%

-13.96 → -26.72

P/E Change

-13.16%

27.65 → 24.01

Mkt Cap Growth

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Frequently Asked Questions

Is NETGEAR Inc (NTGR) currently overvalued or undervalued?

What is NETGEAR Inc (NTGR) fair value?

NTGR'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. The fair price of NETGEAR Inc (NTGR) is between 18.44 to 27.04 according to relative valuation methord.

How does NTGR's valuation metrics compare to the industry average?

What is the current P/B ratio for NETGEAR Inc (NTGR) as of Jan 08 2026?

As of Jan 08 2026, NETGEAR Inc (NTGR) has a P/B ratio of 1.36. This indicates that the market values NTGR at 1.36 times its book value.

What is the current FCF Yield for NETGEAR Inc (NTGR) as of Jan 08 2026?

As of Jan 08 2026, NETGEAR Inc (NTGR) has a FCF Yield of -1.96%. This means that for every dollar of NETGEAR Inc’s market capitalization, the company generates -1.96 cents in free cash flow.

What is the current Forward P/E ratio for NETGEAR Inc (NTGR) as of Jan 08 2026?

As of Jan 08 2026, NETGEAR Inc (NTGR) has a Forward P/E ratio of 140.22. This means the market is willing to pay $140.22 for every dollar of NETGEAR Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for NETGEAR Inc (NTGR) as of Jan 08 2026?

As of Jan 08 2026, NETGEAR Inc (NTGR) has a Forward P/S ratio of 0.99. This means the market is valuing NTGR at $0.99 for every dollar of expected revenue over the next 12 months.

NTGR Valuation