NTGR Valuation

NETGEAR Inc

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27.170

+0.4(1.494%)1D

Overview
Forecast
Valuation
Earnings

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 1.12 is considered Fairly compared with the five-year average of 4.69. The fair price of NETGEAR Inc (NTGR) is between 21.67 to 29.46 according to relative valuation methord.

Relative Value

Fair Zone

21.67-29.46

Current Price：27.17

Fair

-286.00

Trailing

Forward

-300.98

EV/EBITDA

NETGEAR Inc. (NTGR) has a current EV/EBITDA of -300.98. The 5-year average EV/EBITDA is -13.79. The thresholds are as follows: Strongly Undervalued below -133.54, Undervalued between -133.54 and -73.66, Fairly Valued between 46.09 and -73.66, Overvalued between 46.09 and 105.96, and Strongly Overvalued above 105.96. The current Forward EV/EBITDA of -300.98 falls within the Strongly Undervalued range.

-31.97

EV/EBIT

NETGEAR Inc. (NTGR) has a current EV/EBIT of -31.97. The 5-year average EV/EBIT is 12.59. The thresholds are as follows: Strongly Undervalued below -68.46, Undervalued between -68.46 and -27.94, Fairly Valued between 53.11 and -27.94, Overvalued between 53.11 and 93.63, and Strongly Overvalued above 93.63. The current Forward EV/EBIT of -31.97 falls within the Undervalued range.

1.12

NETGEAR Inc. (NTGR) has a current PS of 1.12. The 5-year average PS is 0.78. The thresholds are as follows: Strongly Undervalued below 0.38, Undervalued between 0.38 and 0.58, Fairly Valued between 0.98 and 0.58, Overvalued between 0.98 and 1.18, and Strongly Overvalued above 1.18. The current Forward PS of 1.12 falls within the Overvalued range.

315.26

P/OCF

NETGEAR Inc. (NTGR) has a current P/OCF of 315.26. The 5-year average P/OCF is 14.36. The thresholds are as follows: Strongly Undervalued below -79.69, Undervalued between -79.69 and -32.66, Fairly Valued between 61.38 and -32.66, Overvalued between 61.38 and 108.40, and Strongly Overvalued above 108.40. The current Forward P/OCF of 315.26 falls within the Strongly Overvalued range.

-102.36

P/FCF

NETGEAR Inc. (NTGR) has a current P/FCF of -102.36. The 5-year average P/FCF is 7.50. The thresholds are as follows: Strongly Undervalued below -44.82, Undervalued between -44.82 and -18.66, Fairly Valued between 33.67 and -18.66, Overvalued between 33.67 and 59.83, and Strongly Overvalued above 59.83. The current Forward P/FCF of -102.36 falls within the Strongly Undervalued range.

NETGEAR Inc (NTGR) has a current Price-to-Book (P/B) ratio of 1.51. Compared to its 3-year average P/B ratio of 0.98 , the current P/B ratio is approximately 52.93% higher. Relative to its 5-year average P/B ratio of 1.14, the current P/B ratio is about 31.67% higher. NETGEAR Inc (NTGR) has a Forward Free Cash Flow (FCF) yield of approximately 13.90%. Compared to its 3-year average FCF yield of 8.18%, the current FCF yield is approximately 69.98% lower. Relative to its 5-year average FCF yield of 7.46% , the current FCF yield is about 86.29% lower.

1.51

P/B

Median3y

0.98

Median5y

1.14

13.90

FCF Yield

Median3y

8.18

Median5y

7.46

Competitors Valuation Multiple

The average P/S ratio for NTGR's competitors is 1.88, providing a benchmark for relative valuation. NETGEAR Inc Corp (NTGR) exhibits a P/S ratio of 1.12, which is -40.32% above the industry average. Given its robust revenue growth of 18.51%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of NTGR increased by 35.44% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 6.13 to 12.56.

The secondary factor is the Revenue Growth, contributed 18.51%to the performance.

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

18.51%

143.90M → 170.53M

Revenue Growth

-87.99%

-31.39 → -3.77

Margin Expansion

104.92%

6.13 → 12.56

P/E Change

35.44%