NetApp, Inc. (NTAP) is a publicly traded company in the Technology — Computer Hardware industry listed on NASDAQ. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
NetApp, Inc. is a technology company focused on providing cloud-centric and data-driven services that enable businesses worldwide to efficiently manage and share their information across on-premises infrastructure, private cloud setups, and public cloud platforms. The company's operations are divided into two key segments: Hybrid Cloud and Public Cloud.
Is NetApp, Inc. stock overvalued or undervalued in 2026?
NetApp, Inc. (NTAP) trades at 28.1× earnings (P/E), below the median of the 314 technology companies over $2bn in Kaplio's universe. At the decade median (18.8×) $133 (-33 %); at its sector median (32.0×) $227 (+14 %).
Kaplio overview: NetApp, Inc.
Market cap $39B · 52 weeks $94 – $239 (9 % below the high) · P/E 28.1× · 2027 expected P/E 19.9× · Dividend 1.0 % · 3 years rising · Next earnings December 1, 2026 · expected EPS $2.60 · Closing price, Oct 30 · accounts published Sep 2.
- Valuation: P/E 28.1× (expensive).
- Business: ROIC 21 % (solid).
- Balance sheet: Net debt/EBITDA 0.3× (solid).
- Earnings: 7 of 8 (on track).
What would it be worth at its usual multiples?
At the decade median (18.8×) $133 (-33 %); at its sector median (32.0×) $227 (+14 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
What matters in technology: 5 of 7 pass
- 3y revenue growth 6.2 %, fails.
- EV/EBITDA vs own 5y 20.9×, fails.
- Gross margin 70.7 %, passes.
- FCF / Revenue 27.0 %, passes.
- ROIC 21.1 %, passes.
- SBC / Revenue 5.5 %, passes.
- Net debt / EBITDA 0.3×, passes.
Against its peers (reference peers) — NetApp, Inc.: P/E 28.1×; EV/EBITDA 20.9×; ROIC 21.1 %; $39.1B. Super Micro Computer, Inc. (P/E 10.1×; EV/EBITDA 7.4×; ROIC 9.7 %; $21.6B), Hewlett Packard Enterprise Company (P/E 28.7×; EV/EBITDA 15.1×; ROIC 6.2 %; $73.1B), Western Digital Corporation (P/E 13.9×; EV/EBITDA 23.6×; ROIC 49.3 %; $137B).
Expensive or cheap against its last ten years?
P/E at each close: today 28.1× · median 18.8× · minimum 7.9× · maximum 55.0× · cheap below 15.6× · expensive above 26.5×. It has been cheaper than today 88% of the time over its last ten years.
Dividend
solid · Yield 1.0 % ($2.10 per share in 2026) · Years raising it 3 · 5-year growth +2 % a year · Free cash flow coverage 3.8× · With $1,000 invested today you'd collect $10.20 a year ($0.85 a month).
Kaplio's reading: NetApp, Inc.
Updated on October 14, 2026 · accounts published on September 2, 2026
Reading of October 13, 2026: A highly profitable business with record margins and modest growth
NetApp trades at a P/E of 33.7×, 79 % above its ten-year median, after a 103 % rise in 12 months and a record operating margin.
- Is NetApp expensive or cheap? NetApp's P/E of 33.7× is 79 % above its ten-year median, and it traded lower 91 % of the past decade.
- How is the business doing? NetApp's operating margin is 26 % over the last 12 months, against a 17 % average for fiscal 2015 to 2026.
- How strong is the balance sheet? NetApp held net cash of $3.91 per share at the end of fiscal 2026 and has raised its dividend three years running.
- What to expect from the next earnings? Analysts expect EPS of $2.60 on December 1, 2026, after NetApp beat estimates in 7 of the last 8 quarters.
- Does NetApp grow with real cash or by diluting shareholders? Free cash flow was 27 % of revenue in fiscal 2026, while stock-based pay took just 5.5 %.
Is NetApp expensive or cheap?
Over the last 12 months NetApp trades at a P/E of 33.7×, against a ten-year median of 18.8× and a decade range of 7.9× to 55.0×. The premium follows a 103 % rise in 12 months that leaves the stock within 1 % of its 52-week high of $239.18. Against peers the multiple looks ordinary: it is 2 % below the sector median of 34.3×. EV/EBITDA of 22.3× is nearly double its own five-year average of 11.5×. The 7.3 % free cash flow yield is the cushion the earnings multiple lacks.
How is the business doing?
Margins are the strongest part of the story. Fiscal 2026 closed with a 25 % operating margin, the highest of the 12 fiscal years since 2015, and the last 12 months push it to 26 %, with a 19 % net margin. Growth is modest: revenue rose 5.4 % over the last 12 months while EPS grew 12 %, so profit is expanding faster than sales. ROIC of 21 % over the last 12 months sits 13 points above the 8 % sector median, and it has stayed above 10 % in 8 of the last 10 fiscal years.
How strong is the balance sheet?
Debt-to-equity of 1.69 over the last 12 months looks heavy, but it reflects a thin equity base more than heavy borrowing; that same base explains the 114 % ROE and the 31.4× P/B. Cash of $18.19 per share exceeded debt of $14.28 at the end of fiscal 2026. The Piotroski score is 8 of 9, while the Altman Z of 2.7 sits in the grey zone and the current ratio is 1.24. The 0.9 % dividend yield is small, but a 32 % payout in fiscal 2026 leaves room to keep raising it.
What to expect from the next earnings?
The last report, on September 2, 2026, delivered EPS of $2.58 against $2.12 expected, a 22 % surprise and the largest of the last eight quarters. That record of beats in 7 of 8 quarters sets a high bar for December 1, when the consensus calls for $2.60. Estimates are edging up: the 2027 EPS consensus rose 0.5 % in 29 days, from $9.95 to $10.00, and revenue forecasts also rose 0.5 %. Of 71 analysts, 26 say buy, 37 hold and 8 sell, a cautious split for a stock that doubled in a year.
Does NetApp grow with real cash or by diluting shareholders?
In technology, generic ratios fall short: what matters is growth, pricing power and how much profit goes to staff in shares. NetApp passes most of these tests. Its 71 % gross margin in fiscal 2026 is double the 35 % considered healthy for hardware, a sign of pricing power. Free cash flow at 27 % of revenue clears the 20 % bar, stock-based pay at 5.5 % of revenue stays under the 10 % healthy line, and net debt is 0.3× EBITDA against 2.0× tolerated. The weak spot is growth: revenue per share rose 6.2 % a year over fiscal 2023-2026, well short of the 15 % benchmark.
How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.
Investor methods verdict
Would Buffett approve NetApp today?
The Buffett Method would wait for a better price for NetApp: it yields 2.8% before tax; it asks for 10%. Business quality: 82 out of 100 (price not included). Kaplio assessment with data from the week of 2026-10-26; not investment advice.
Would Peter Lynch approve NetApp today?
The Lynch Method would wait for a better price for NetApp. Business quality: 100 out of 100 (price not included). Lynch classifies it as a stalwart. Kaplio assessment with data from the week of 2026-10-26; not investment advice.
Profitability
| Return on Equity | 113.67% |
| Return on Invested Capital | 21.13% |
| Return on Assets | 12.94% |
| Gross Margin | 70.63% |
| Operating Margin | 25.73% |
| Net Margin | 19.19% |
Financial Health
| Debt / Equity | 1.69 |
| Current Ratio | 1.24 |
| Piotroski F-Score | 8 |
| Altman Z-Score | 2.75 |
Price Performance
| 1 month | +1.57% |
| 3 months | +22.36% |
| Year-to-date | +103.96% |
| 1 year | +85.45% |
| 3 years | +197.78% |
| 5 years | +142.37% |
| 10 years | +573.72% |
Dividend History
Paid in the last 12 months: $2.0800 per share in 4 payments.
| Date | Amount |
|---|---|
| 2026-10-09 | $0.5200 |
| 2026-07-10 | $0.5200 |
| 2026-04-02 | $0.5200 |
| 2026-01-02 | $0.5200 |
| 2025-10-03 | $0.5200 |
| 2025-07-03 | $0.5200 |
| 2025-04-04 | $0.5200 |
| 2025-01-03 | $0.5200 |
| 2024-10-04 | $0.5200 |
| 2024-07-05 | $0.5200 |
Amounts adjusted for stock splits.
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Explore sector: Technology · Computer Hardware
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