NetApp, Inc. (NTAP) Stock Valuation — PE Analysis
Computer Hardware · NASDAQ
Current Price
$161.61
PE Ratio (TTM)
25.0x
Intrinsic Value
$237.95
+32.1% 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 PE valuation
A base case PE valuation for NTAP estimates a fair value of about $237.95 per share, against a current price of $161.61. The model assumes 14.9% annual earnings growth, a 25x target PE multiple, and a 10% discount rate.
Intrinsic Value
$237.95
Margin of safety
+32.1%
Expected annual return
+8.0%
Base case assumptions: 14.9% annual earnings growth, 25x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the NTAP PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for NetApp, Inc. respond.
Open PE 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 PE Stock Valuation Data
PE Ratio (TTM)
25.0x
PEG Ratio
2.34
Earnings Yield
4.01%
ROE (TTM)
114.2%
Revenue/Share (TTM)
$35.15
Dividend Yield
1.29%
Debt/Equity
2.02x
Frequently Asked Questions
What is the PE ratio of NTAP?
The trailing twelve-month PE ratio of NTAP reflects how much investors pay per dollar of NetApp, Inc.'s earnings. This metric is most useful when compared to Computer Hardware peers and the company's own historical range.
Is NTAP overvalued based on PE ratio?
NTAP's PE of 25.0x combined with a PEG ratio of 2.34 provides a growth-adjusted perspective. A PEG above 2.0 suggests NTAP may be richly valued even accounting for growth. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Computer Hardware, a DCF analysis may be more appropriate.
How do I value NTAP stock using PE ratio?
To value NetApp, Inc. using PE: (1) Compare the current PE (25.0x) against the Computer Hardware median to assess relative pricing, (2) check the PEG ratio (2.34) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of NTAP?
NTAP's PEG ratio is 2.34, calculated by dividing the PE ratio (25.0x) by the expected earnings growth rate. A PEG above 2.0 often signals the stock is priced aggressively relative to its growth trajectory. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for NTAP stock valuation?
PE ratio gives a quick relative read — how NTAP is priced versus Computer Hardware peers. DCF provides an absolute value based on projected free cash flows. For NTAP, with a strong ROE of 114.2%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See NTAP DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Technology valuationsP/E and DCF value NTAP with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic 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.