Assessing NetApp (NTAP) Valuation After Recent Choppy Share Price Performance

NetApp (NTAP) has drawn attention after its recent share performance, with the stock last closing at US$106.62. Investors are weighing this price against the company’s earnings profile and recent total return history.

See our latest analysis for NetApp.

Recent trading has been choppy, with a 1-day share price return of 1.47% compared with a 30-day share price return decline of 9.08%. The 1-year total shareholder return shows a loss of 7.13%, which contrasts with stronger 3- and 5-year total shareholder returns of 77.18% and 81.38%. This suggests that longer term momentum has been more supportive than recent price action.

If NetApp’s recent swings have you thinking about where else growth and risk are being repriced, it could be a good moment to check out high growth tech and AI stocks.

With NetApp trading at US$106.62 alongside an indicated intrinsic discount of about 43% and a roughly 17% gap to the current analyst price target, you have to ask: is there still real upside here, or is the market already pricing in future growth?

Most Popular Narrative: 14.2% Undervalued

With NetApp last closing at US$106.62 against a narrative fair value of about US$124.33, the story centers on margins, flash storage, and cloud mix.

Substantial growth in Keystone Storage-as-a-Service (up ~80% year-over-year) and increased deferred revenue (+9% year-over-year) indicate growing preference for subscription-based and as-a-service storage, supporting higher revenue visibility and margin expansion as mix continues to shift toward high-value services.

Read the complete narrative.

Curious what sits behind that fair value? The narrative focuses on steady revenue gains, firmer profit margins, and a future earnings multiple below many US tech peers.

Result: Fair Value of $124.33 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this depends on NetApp offsetting pressure in traditional on premises hardware and managing margin risks tied to its heavy exposure to hyperscaler partnerships.

Find out about the key risks to this NetApp narrative.

Build Your Own NetApp Narrative

If you see the story differently or prefer to test the numbers yourself, you can create your own complete view of NetApp in minutes with Do it your way.

A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding NetApp.

Looking for more investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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