NetApp, Inc. (NTAP) Stock Valuation — PE Analysis
Computer Hardware · NASDAQ
Current Price
$199.28
PE Ratio (TTM)
27.8x
Intrinsic Value
$200.83
+0.8% margin of safety
COMPETITIVE MOAT
↑Established Enterprise Relationships
NetApp has cultivated deep relationships with large enterprises over decades. These existing partnerships create significant switching costs for customers invested in NetApp's storage and data management solutions.
↑Data Management Software Ecosystem
The company's comprehensive software suite for data management, backup, and recovery offers integrated functionality. This ecosystem lock-in makes it complex and costly for clients to migrate to disparate solutions.
↑Hybrid Cloud Integration Expertise
NetApp's ability to seamlessly integrate data management across on-premises and multiple cloud environments is a key differentiator. This specialized expertise is difficult for competitors to replicate quickly.
INVESTMENT RISKS
↓Intensifying Market Competition
The storage and data management market is highly competitive with numerous players vying for market share. This can lead to pricing pressures and reduced profitability.
↓Dependence on Hardware Sales Cycles
While software is growing, NetApp's revenue is still significantly tied to hardware refresh cycles. Economic downturns or shifts in IT spending can impact hardware demand.
↓Talent Acquisition and Retention
Attracting and retaining skilled engineers and sales professionals in the rapidly evolving tech landscape is crucial. Competition for top talent can increase operational costs.
Base case
NTAP base case PE valuation
At a current price of $199.28, the base case PE valuation puts NTAP fair value near $200.83 per share. That figure assumes 6.3% yearly earnings growth, a target PE multiple of 27.56x, and a 10% discount rate.
Intrinsic Value
$200.83
Margin of safety
+0.8%
Expected annual return
+0.2%
Base case assumptions: 6.3% annual earnings growth, 27.56x target PE, 10% discount rate, 5 year projection. Data as of 2026-09-11.
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)
27.8x
PEG Ratio
1.14
Earnings Yield
3.63%
ROE (TTM)
113.7%
Revenue/Share (TTM)
$37.71
Dividend Yield
1.04%
Debt/Equity
1.69x
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 27.8x combined with a PEG ratio of 1.14 provides a growth-adjusted perspective. A PEG near 1.0 means the P/E is roughly in line with the earnings growth rate. 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 (27.8x) against the Computer Hardware median to assess relative pricing, (2) check the PEG ratio (1.14) 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 1.14, calculated by dividing the PE ratio (27.8x) by the expected earnings growth rate. A PEG near 1.0 means the P/E is roughly in line with the expected earnings growth rate. 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 113.7%, 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 2026-09-11. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.