NetApp, Inc. (NTAP) Stock Valuation — DCF Analysis
Computer Hardware · NASDAQ
Current Price
$161.61
Intrinsic Value
$248.43
+34.9% margin of safety
COMPETITIVE MOAT
↑Strong Enterprise Relationships
NetApp's deep integration with major enterprise IT vendors like Cisco, as evidenced by recent collaboration announcements, fosters sticky customer relationships. This partnership approach makes it difficult for competitors to displace their solutions.
↑AI Data Infrastructure Focus
The company's strategic positioning as an 'Intelligent Data Infrastructure' provider, particularly in accelerating and securing AI innovation, creates a specialized niche. This focus caters to growing demand for efficient AI data management.
↑Hybrid Cloud Data Management
NetApp's ability to manage data across hybrid cloud environments offers a significant advantage. This flexibility addresses complex enterprise needs, reducing vendor lock-in concerns for customers.
INVESTMENT RISKS
↓Intense Hardware Competition
The computer hardware industry is highly competitive, with numerous players vying for market share. NetApp faces constant pressure from both established giants and agile newcomers.
↓Dependence on IT Spending Cycles
Enterprise IT spending can be cyclical and sensitive to economic downturns. A slowdown in capital expenditures by businesses could negatively impact NetApp's revenue and growth.
↓Evolving Cloud Storage Landscape
The rapid evolution of cloud storage solutions and the dominance of hyperscalers present a continuous challenge. NetApp must adapt its offerings to remain relevant against increasingly integrated cloud services.
Base case
NTAP base case valuation
A base case discounted cash flow model for NTAP estimates an intrinsic value of about $248.43 per share, against a current price of $161.61. The model assumes 14.1% annual free cash flow growth, a 10.0% discount rate, and a 17x exit multiple.
Intrinsic Value
$248.43
Margin of safety
+34.9%
Expected annual return
+9.0%
Base case assumptions: 14.1% annual growth, 10.0% discount rate, 17x exit multiple, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the NTAP valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for NetApp, Inc. respond.
Open DCF Calculator for NTAPCompany Overview
NetApp, Inc. is a technology company focused on providing cloud-centric and data-driven services that enable businesses worldwide to efficiently manage and share their information across on-premises infrastructure, private cloud setups, and public cloud platforms. The company's operations are divided into two key segments: Hybrid Cloud and Public Cloud. NetApp offers an extensive suite of intelligent data management software, including its foundational NetApp ONTAP, NetApp Snapshot for data protection, NetApp SnapCenter for backup management, NetApp SnapMirror for data replication, NetApp SnapLock for data compliance, NetApp ElementOS software, and NetApp SANtricity software. Its storage infrastructure solutions comprise the NetApp All-Flash FAS series, NetApp Fabric Attached Storage, NetApp FlexPod integrated systems, NetApp E/EF series, NetApp StorageGRID object storage, and NetApp SolidFire solutions. For cloud environments, NetApp delivers a wide array of cloud storage and data services such as NetApp Cloud Volumes ONTAP, Azure NetApp Files, Amazon FSx for NetApp ONTAP, and NetApp Cloud Volumes Service for Google Cloud. These are augmented by services like NetApp Cloud Sync, NetApp Cloud Tiering, NetApp Cloud Backup, NetApp Cloud Data Sense for analytics, and NetApp Cloud Volumes Edge Cache. The company also provides cloud operations services, which include NetApp Cloud Insights, the Spot Ocean Kubernetes Suite, Spot Security, Spot Eco for cost optimization, and Spot CloudCheckr. Moreover, NetApp offers application-aware data management solutions under its NetApp Astra brand. Its service portfolio is rounded out by comprehensive professional and support services, encompassing strategic consulting, managed services, and dedicated support, in addition to assessment, design, implementation, and migration services. NetApp serves a broad spectrum of industries globally, including energy, financial services, government, technology, internet, life sciences, healthcare, manufacturing, media, entertainment, animation, video post-production, and telecommunications. The company reaches its clientele through a direct sales force and a robust network of partners. NetApp, Inc. was founded in 1992 and is headquartered in San Jose, California.
Financial Metrics — NTAP Stock Valuation Data
Revenue/Share (TTM)
$35.15
FCF/Share (TTM)
$9.49
ROIC (TTM)
19.1%
ROE (TTM)
114.2%
P/FCF
16.9x
EV/EBITDA
16.5x
FCF Yield
5.90%
Debt/Equity
2.02x
Based on trailing twelve-month data, NTAP shows a free cash flow per share of $9.49 and a ROIC of 19.1%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 16.9x and FCF yield of 5.90% are important context metrics when evaluating NTAP's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of NTAP?
NetApp, Inc. currently generates $9.49 in free cash flow per share. At the current price of $161.61, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is NTAP undervalued?
NTAP trades at a P/FCF ratio of 16.9x with a free cash flow yield of 5.90%. This P/FCF is in a moderate range. However, whether NTAP is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value NTAP stock using DCF?
To perform a DCF valuation on NetApp, Inc.: (1) Start with the trailing free cash flow per share ($9.49) as the base, (2) project future FCF growth over 5-10 years based on Computer Hardware industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting NTAP's risk profile — with a debt-to-equity of 2.02x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to NTAP?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For NetApp, Inc., this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Computer Hardware trends, then discounting those amounts to today's dollars. NTAP's ROIC of 19.1% indicates strong capital efficiency, which supports higher growth assumptions in the DCF model.
How does WACC affect NTAP stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For NTAP, with a debt-to-equity ratio of 2.02x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 16.5x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See NTAP PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Technology valuationsDCF and P/E value NTAP with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.