NetApp Stock Valuation

NTAP Stock  USD 69.05  1.94  2.89%   
What is the intrinsic value of NetApp stock? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as NetApp, is its stock price multiplied by the total number of shares outstanding, calculating NetApp's enterprise value requires a different approach. It uses NetApp's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
As of 2nd of February 2023, Free Cash Flow is likely to grow to about 1.1 B. Also, Enterprise Value is likely to grow to about 10.4 B.
NetApp Inc secures a last-minute Real Value of $82.58 per share. The latest price of the firm is $69.05. At this time, the firm appears to be undervalued. Our model forecasts the value of NetApp Inc from analyzing the firm fundamentals such as Profit Margin of 0.23 %, current valuation of 13.52 B, and Return On Equity of 1.50 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we recommend obtaining undervalued stocks and abandoning overvalued stocks since, at some point, asset prices and their ongoing real values will merge together.
  
NetApp Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as NetApp's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

NetApp Most Recent Valuation Data

Dividend Share
2
Beta
1.1545
Change Receivables
-313 M
Fiscal Year End
April
Property Plant And Equipment Net
896 M
Undervalued
Today 69.05
Please note that NetApp's price fluctuation is very steady at this time. Calculation of the real value of NetApp Inc is based on 3 months time horizon. Increasing NetApp's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for NetApp Inc is useful when determining the fair value of the NetApp stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of NetApp. Since NetApp is currently traded on the exchange, buyers and sellers on that exchange determine the market value of NetApp Stock. However, NetApp's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
82.58
Real Value
84.45
Upside
Estimating the potential upside or downside of NetApp Inc helps investors to forecast how NetApp stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of NetApp more accurately as focusing exclusively on NetApp's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
63.6866.5869.49
Details
Hype
Prediction
LowEstimated ValueHigh
67.1869.0570.92
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
1.281.331.37
Details
16 Analysts
Consensus
LowTarget PriceHigh
70.0097.69120.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use NetApp's intrinsic value based on its ongoing forecasts of NetApp's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against NetApp's closest peers. When choosing an evaluation method for NetApp Inc, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

NetApp Investments

2.04 Billion

NetApp Valuation Drivers Correlation

Many accounts on the financial statements of NetApp Inc are highly interrelated and sometimes correlated. Consequently, when conducting NetApp's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of NetApp
Click cells to compare fundamentals

NetApp Valuation Trend

Knowing NetApp's actual value is paramount for traders to make sound investment determinations. NetApp's real value is not only important for the investor to make better decisions but also for a more accurate overall view of NetApp's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both NetApp's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

NetApp Market Cap

NetApp Inc is considered to be number one stock in market capitalization category among related companies. Market capitalization of Information Technology industry is now estimated at about 68.63 Billion. NetApp totals roughly 14.47 Billion in market capitalization claiming about 21% of equities under Information Technology industry.
Capitalization  Workforce  Revenue  Total debt  Valuation

NetApp Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining NetApp's current stock value. Our valuation model uses many indicators to compare NetApp value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across NetApp competition to find correlations between indicators driving NetApp's intrinsic value. More Info.
NetApp Inc is considered to be number one stock in beta category among related companies. It is considered to be number one stock in price to earning category among related companies reporting about  15.50  of Price to Earning per Beta. NetApp Price to Earnings Ratio are very stable at the moment as compared to the past year. NetApp reported last year Price to Earnings Ratio of 33.79. As of 2nd of February 2023, Earnings before Tax is likely to grow to about 710.1 M, while Earnings Before Interest Taxes and Depreciation Amortization EBITDA are likely to drop about 1.1 B.. Comparative valuation analysis is a catch-all model that can be used if you cannot value NetApp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for NetApp's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the NetApp's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates NetApp's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in NetApp and how it compares across the competition.

About NetApp Valuation

The stock valuation mechanism determines the current worth of NetApp Inc on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of NetApp Inc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of NetApp Inc based exclusively on its fundamental and basic technical indicators. By analyzing NetApp's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of NetApp's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of NetApp. We calculate exposure to NetApp's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to NetApp's related companies.
Fiscal Year End
April
Industry
Computer Hardware
Concentration
Technology Hardware, Storage & Peripherals
Full Time Employees
12 K
Service Category
Technology Hardware, Storage & Peripherals
Last ReportedProjected for 2023
Gross Profit2.9 B3.6 B
Profit Margin 12.71  11.12 

8 Steps to conduct NetApp's Valuation Analysis

Company's valuation is the process of determining the worth of a company in monetary terms. It estimates a company's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct NetApp's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain NetApp's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine NetApp's revenue streams: Identify NetApp's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research NetApp's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish NetApp's growth potential: Evaluate NetApp's management, business model, and growth potential.
  • Determine NetApp's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate NetApp's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
NetApp's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether NetApp's value is low or high relative to the company's performance and growth projections. Determining the market value of NetApp can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of NetApp represents a small ownership stake in the entity. As a stockholder of NetApp, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

NetApp Dividends Analysis For Valuation

As of 2nd of February 2023, Dividends per Basic Common Share is likely to grow to 1.02, while Payment of Dividends and Other Cash Distributions is likely to drop (203.9 M). . NetApp Earning Before Interest and Taxes EBIT is very stable at the moment as compared to the past year. NetApp reported last year Earning Before Interest and Taxes EBIT of 599.26 Million. As of 2nd of February 2023, Price to Earnings Ratio is likely to grow to 37.91, while Earnings per Diluted Share are likely to drop 2.59.
Last ReportedProjected for 2023
Payment of Dividends and Other Cash Distributions-189 M-203.9 M
Dividend Yield 0.0345  0.0316 
Dividends per Basic Common Share 0.83  1.02 
There are various types of dividends NetApp can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of NetApp shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from NetApp Inc directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When NetApp pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of NetApp by the value of the dividends paid out.

NetApp Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as NetApp does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quarterly Earnings Growth Y O Y2.48

NetApp Current Valuation Indicators

Valuation refers to the process of determining the present value of NetApp Inc and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value NetApp we look at many different elements of the entity such as NetApp's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. NetApp's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final NetApp's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as NetApp, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use NetApp's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes NetApp's worth.
Additionally, see Correlation Analysis. Note that the NetApp Inc information on this page should be used as a complementary analysis to other NetApp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

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When running NetApp Inc price analysis, check to measure NetApp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy NetApp is operating at the current time. Most of NetApp's value examination focuses on studying past and present price action to predict the probability of NetApp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move NetApp's price. Additionally, you may evaluate how the addition of NetApp to your portfolios can decrease your overall portfolio volatility.
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Is NetApp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of NetApp. If investors know NetApp will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about NetApp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
2.48
Market Capitalization
14.5 B
Quarterly Revenue Growth
0.062
Return On Assets
0.0791
Return On Equity
1.5043
The market value of NetApp Inc is measured differently than its book value, which is the value of NetApp that is recorded on the company's balance sheet. Investors also form their own opinion of NetApp's value that differs from its market value or its book value, called intrinsic value, which is NetApp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because NetApp's market value can be influenced by many factors that don't directly affect NetApp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between NetApp's value and its price as these two are different measures arrived at by different means. Investors typically determine NetApp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NetApp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.