Netscout Stock Valuation

NTCT
 Stock
  

USD 37.28  0.58  1.58%   

What would the acquisition value of Netscout Systems be today? 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 Netscout Systems, is its stock price multiplied by the total number of shares outstanding, calculating Netscout Systems' enterprise value requires a different approach. It uses Netscout Systems' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Free Cash Flow is likely to drop to about 193.4 M in 2022. Enterprise Value is likely to drop to about 2.3 B in 2022.
Netscout Systems secures a last-minute Real Value of $37.38 per share. The latest price of the firm is $37.28. At this time, the firm appears to be fairly valued. Our model forecasts the value of Netscout Systems from analyzing the firm fundamentals such as Return On Equity of 2.52 %, profit margin of 5.57 %, and Current Valuation of 2.62 B as well as examining its technical indicators and Probability Of Bankruptcy. In general, we recommend acquiring undervalued stocks and selling overvalued stocks since, at some point, asset prices and their ongoing real values will merge together.
  
Netscout Systems 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 Netscout Systems's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Netscout Most Recent Valuation Data

Price Book
1.41
Enterprise Value
2.6 B
Enterprise Value Ebitda
21.93
Price Sales
3.0
Forward PE
18.87
Trailing PE
54.4
Fairly Valued
Today 37.28
Please note that Netscout Systems' price fluctuation is very steady 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.
37.38
Real Value
39.30
Upside
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:
Earnings
Estimates (2)
LowProjected EPSHigh
1.181.191.19
Details
Hype
Prediction
LowEstimated ValueHigh
34.8336.7538.67
Details
Naive
Forecast
LowNext ValueHigh
36.8338.7540.67
Details
2 Analysts
Consensus
LowTarget PriceHigh
33.0035.0037.00
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 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

70.09 Million

Netscout Valuation Drivers Correlation

Many accounts on the financial statements of Netscout Systems are highly interrelated and sometimes correlated. Consequently, when conducting Netscout'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 Netscout
Click cells to compare fundamentals

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 rated below average in market capitalization category among related companies. Market capitalization of Software—Infrastructure industry is now estimated at about 2.34 Trillion. Netscout Systems adds roughly 2.73 Billion in market capitalization claiming only tiny portion of equities listed under Software—Infrastructure industry.
Capitalization  Revenue  Total debt  Valuation  Workforce

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 beta category among related companies totaling about  0.01  of Beta per Price to Earning. The ratio of Price to Earning to Beta for Netscout Systems is roughly  85.37 . 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.
Fiscal Year End
March
Industry
Software-Infrastructure
Concentration
Communications Equipment
Full Time Employees
2.3 K
Service Category
Communications Equipment
Employer Id Number
04-2837575
Last ReportedProjected for 2022
Gross Profit747.1 M675.9 M
Profit Margin 4.19  5.66 

Netscout Systems 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 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.
Quick Ratio1.26
Earnings Quarterly Growth120.10%
Revenue Growth7.60%
Enterprise Value To Ebitda17.16
Earnings Growth126.10%
Enterprise Value To Revenue2.94

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.
Additionally, see Correlation Analysis. 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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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 YOY
1.26
Market Capitalization
2.7 B
Quarterly Revenue Growth YOY
0.076
Return On Assets
0.0133
Return On Equity
0.0252
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 Netscout Systems value 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.