NetScout Systems Valuation
| NTCT Stock | USD 20.00 0.46 2.35% |
At this time, the firm appears to be undervalued. NetScout Systems secures a last-minute Real Value of $22.62 per share. The latest price of the firm is $20.0. Our model forecasts the value of NetScout Systems from analyzing the firm fundamentals such as Profit Margin of (0.14) %, current valuation of 1.21 B, and Return On Equity of -0.0607 as well as examining its technical indicators and probability of bankruptcy. In general, most investors recommend acquiring undervalued stocks and selling overvalued stocks since, at some point, asset prices and their ongoing real values will merge together. Key fundamental drivers impacting NetScout Systems' valuation include:
Price Book 0.7343 | Enterprise Value 1.2 B | Enterprise Value Ebitda (50.09) | Price Sales 1.676 | Forward PE 9.0253 |
Undervalued
Today
Please note that NetScout Systems' price fluctuation is not too volatile at this time. Calculation of the real value of NetScout Systems is based on 3 months time horizon. Increasing NetScout Systems' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for NetScout Systems is useful when determining the fair value of the NetScout stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of NetScout Systems. Since NetScout Systems is currently traded on the exchange, buyers and sellers on that exchange determine the market value of NetScout Stock. However, NetScout Systems' 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. | Historical | Market 20.0 | Real 22.62 | Target 30.9 | Hype 19.57 |
The real value of NetScout Stock, also known as its intrinsic value, is the underlying worth of NetScout Systems Company, which is reflected in its stock price. It is based on NetScout Systems' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of NetScout Systems' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence NetScout Systems' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of NetScout Systems helps investors to forecast how NetScout 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 NetScout Systems more accurately as focusing exclusively on NetScout Systems' fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use NetScout Systems' intrinsic value based on its ongoing forecasts of NetScout Systems' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against NetScout Systems' closest peers. When choosing an evaluation method for NetScout Systems, 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.
NetScout Systems Investments |
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NetScout Valuation Trend
Knowing NetScout Systems' actual value is paramount for traders to make sound investment determinations. NetScout Systems' real value is not only important for the investor to make better decisions but also for a more accurate overall view of NetScout Systems' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both NetScout Systems' 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.
NetScout Market Cap
NetScout Systems is regarded third in market capitalization category among related companies. Market capitalization of Information Technology industry is now estimated at about 9.65 Billion. NetScout Systems retains roughly 1.39 Billion in market capitalization claiming about 14% of equities under Information Technology industry.NetScout Systems Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining NetScout Systems's current stock value. Our valuation model uses many indicators to compare NetScout Systems value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across NetScout Systems competition to find correlations between indicators driving NetScout Systems's intrinsic value. More Info.NetScout Systems is considered to be number one stock in price to earning category among related companies. It is rated below average in price to book category among related companies fabricating about 0.01 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for NetScout Systems is roughly 75.57 . Price To Book Ratio is likely to drop to 0.86 in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value NetScout Systems by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for NetScout Systems' 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 NetScout Systems' 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 NetScout Systems' 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 NetScout Systems and how it compares across the competition.
About NetScout Systems Valuation
The stock valuation mechanism determines the current worth of NetScout Systems on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of NetScout Systems. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of NetScout Systems based exclusively on its fundamental and basic technical indicators. By analyzing NetScout Systems'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 NetScout Systems'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 NetScout Systems. We calculate exposure to NetScout Systems's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to NetScout Systems's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 795.1 M | 834.9 M | |
| Pretax Profit Margin | 0.09 | 0.08 | |
| Operating Profit Margin | 0.1 | 0.08 | |
| Net Profit Margin | 0.07 | 0.06 | |
| Gross Profit Margin | 0.87 | 0.83 |
NetScout Systems Quarterly Retained Earnings |
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8 Steps to conduct NetScout Systems' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates NetScout Systems' 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 NetScout Systems' valuation analysis, follow these 8 steps:- Gather financial information: Obtain NetScout Systems' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine NetScout Systems' revenue streams: Identify NetScout Systems' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research NetScout Systems' industry and market trends, including the size of the market, growth rate, and competition.
- Establish NetScout Systems' growth potential: Evaluate NetScout Systems' management, business model, and growth potential.
- Determine NetScout Systems' 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 NetScout Systems' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
NetScout Systems Growth Indicators
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 NetScout Systems 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.
| Common Stock Shares Outstanding | 73 M | |
| Quarterly Earnings Growth Y O Y | 0.208 | |
| Forward Price Earnings | 9.0253 |
NetScout Systems Current Valuation Indicators
Valuation refers to the process of determining the present value of NetScout Systems and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value NetScout we look at many different elements of the entity such as NetScout's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. NetScout Systems' 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 NetScout Systems' 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 NetScout Systems, 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 NetScout Systems' 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 NetScout Systems' worth.When determining whether NetScout Systems is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if NetScout Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Netscout Systems Stock. Highlighted below are key reports to facilitate an investment decision about Netscout Systems Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in NetScout Systems. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in main economic indicators. For more information on how to buy NetScout Stock please use our How to Invest in NetScout Systems guide.Note that the NetScout Systems information on this page should be used as a complementary analysis to other NetScout Systems' 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 the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Complementary Tools for NetScout Stock analysis
When running NetScout Systems' price analysis, check to measure NetScout Systems' 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 NetScout Systems is operating at the current time. Most of NetScout Systems' value examination focuses on studying past and present price action to predict the probability of NetScout Systems' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move NetScout Systems' price. Additionally, you may evaluate how the addition of NetScout Systems to your portfolios can decrease your overall portfolio volatility.
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Is NetScout Systems' 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 NetScout Systems. If investors know NetScout 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 NetScout Systems 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 0.208 | Earnings Share (1.65) | Revenue Per Share 11.674 | Quarterly Revenue Growth (0.19) | Return On Assets 0.012 |
The market value of NetScout Systems is measured differently than its book value, which is the value of NetScout that is recorded on the company's balance sheet. Investors also form their own opinion of NetScout Systems' value that differs from its market value or its book value, called intrinsic value, which is NetScout Systems' 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 NetScout Systems' market value can be influenced by many factors that don't directly affect NetScout Systems' 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 NetScout Systems' value and its price as these two are different measures arrived at by different means. Investors typically determine if NetScout Systems is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NetScout Systems' 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.