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Nutanix (NTNX) On Its Parallels Prism Tie Up Still Looks Fully Valued

Simply Wall St · 1d ago

Parallels’ latest update to its Remote Application Server strengthens its collaboration with Nutanix (NTNX) by adding support for Nutanix Prism, which centralizes how enterprises manage virtual desktops and applications on Nutanix infrastructure.

Recent trading shows Nutanix shares carrying solid momentum, with a 90-day share price return of 46.31% and a year-to-date gain of 34.37% at a latest share price of US$67.99. This comes even though the 1-year total shareholder return declined 12.5%, while the 3-year and 5-year total shareholder returns of 102.41% and 69.81% point to a much stronger longer-run picture that frames this Parallels collaboration as one of several catalysts investors are watching for how the story develops.

Compare Nutanix’s momentum and enterprise cloud focus with a curated set of peers by scanning the 59 AI infrastructure stocks that are helping power the next wave of data center and virtualization demand.

Nutanix now carries a clear enterprise cloud story and a share price that has moved sharply over 90 days. The real tension is whether that recent run already captures what the business is offering.

Most Popular Narrative: 15% Overvalued

The most followed Nutanix narrative now pegs fair value around $58.98, which sits well below the last close at $67.99. The key question is how much future growth is already reflected in that gap.

Analysts are assuming Nutanix's revenue will grow by 12.5% annually over the next 3 years.

Analysts assume that profit margins will increase from 10.0% today to 14.9% in 3 years time.

See why 35 investors see Nutanix as 15% overvalued.

Result: Fair Value of $58.98 (OVERVALUED)

Still, several pressure points could flip that story, including tougher competition from hyperscale cloud providers and higher operating costs that squeeze Nutanix profitability assumptions.

Find out about the key risks to this Nutanix narrative.

Another View: Nutanix Through The Earnings Multiple Lens

Analyst fair value work frames Nutanix as 15% overvalued, yet the current P/E of 12.2x looks much lower than the US Software industry on 30.5x and peer average on 46.9x. The fair ratio of 10x is tighter, so the key question is whether the multiple drifts up or snaps back down.

For a closer look at how that gap between current P/E, peers and the fair ratio could resolve over time, check the valuation breakdown in the See what the numbers say about this price — find out in our valuation breakdown..

NasdaqGS:NTNX P/E Ratio as at Sep 2026
NasdaqGS:NTNX P/E Ratio as at Sep 2026

Next Steps

Sentiment around Nutanix is mixed, with both optimism and caution in play. Consider moving quickly, review the data for yourself, and weigh the 2 key rewards and 1 important warning sign.

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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.