US Equities Analysis

NTAP — NetApp

Research evidence pack

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2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 27.26%
Profit Margins 18.43%
Return on Equity 106.73%
Return on Assets 9.82%
Free Float 0.19B
Dividend Yield 1.36%
Short Int % Utilisation 12.68%

2.2 Growth

Metric Value
Revenue Growth 12.5%
Free Cash Flow 1.3B
EBITDA 16.26 (Ratio)
Enterprise Value 30.63B
EV/Revenue 4.42
EV/EBITDA 16.26

Revenue growth of 12.5% indicates steady, moderate expansion.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* 112.78%
Risk / Std Dev (Ann.)* 43.07%
1-Year Price Return* 93.68%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $207.08
52-Week Range $93.69 – $209.06
Observation Count 251 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

2.5 FCFF DCF Valuation

Valuation basis: This research model follows a five-year, unlevered FCFF DCF. It starts from reported annual operating inputs, forecasts revenue and operating cash conversion under an explicit mechanical policy, discounts FCFF at WACC, applies a Gordon-growth terminal value, and bridges enterprise value to an indicative common-equity value per share. It is an analytical estimate rather than a recommendation or personalised target price.

Step 1 — Forecast Operating Profit and NOPAT

Reported operating input Value
Revenue $6.92B
Prior annual revenue $6.57B
EBIT $1.76B
Tax rate 22.57%
NOPAT = EBIT × (1 − tax rate) $1.36B
Forecast start-growth basis 5.37%
Forecast policy latest reported annual revenue growth, bounded to -10.00% / 15.00%

Step 2 — Calculate FCFF

Current FCFF building block Value
NOPAT $1.36B
Add: depreciation & amortisation $200.00M
Less: capital expenditure -$198.00M
Less/(add): working-capital cash-flow movement -$23.00M
Current unlevered FCFF $1.34B

Explicit FCFF forecast

Forecast year Revenue growth NOPAT D&A Capex Change in NWC FCFF Present value
1 5.37% $1.43B $210.74M -$208.64M -$24.24M $1.41B $1.33B
2 4.65% $1.50B $220.55M -$218.90M -$25.36M $1.48B $1.25B
3 3.94% $1.56B $229.23M -$228.08M -$26.36M $1.53B $1.16B
4 3.22% $1.61B $236.61M -$236.01M -$27.21M $1.58B $1.07B
5 2.50% $1.65B $242.52M -$242.52M -$27.89M $1.62B $975.21M

Step 3 — Determine the Discount Rate (WACC)

WACC input Value
Risk-free rate 4.71%
Equity risk premium assumption 5.50%
Beta 1.43
Cost of equity 12.59%
Pre-tax cost of debt 3.50%
WACC 11.97%
WACC validation within standard range

Step 4 — Estimate Terminal Value

Terminal-value input Value
Perpetuity growth rate 2.50%
Terminal value $17.56B
Implied terminal EV / EBITDA 7.40x
Terminal value as % of enterprise value 63.34%

Step 5 — Discount Cash Flows to Enterprise Value

Enterprise-value component Value
Present value of explicit FCFF $5.78B
Present value of terminal value $9.98B
Indicated enterprise value $15.76B
Discounting convention mid-year for explicit FCFF; terminal value discounted at year-end five

Step 6 — Convert Enterprise Value to Equity Value

Equity bridge Value
Indicated enterprise value $15.76B
Less: gross interest-bearing debt $2.73B
Add: cash and equivalents $3.58B
Add: affiliate investments $0.00
Less: minority interests $0.00
Indicated common equity value $16.61B

Step 7 — Calculate Indicative Value Per Share

Per-share output Value
Shares used 201,000,000.00
Share-count basis reported diluted weighted-average shares
Current market price $205.57
DCF indicative value per share $82.63
Indicative value vs. market price -59.81%

Model Integrity Checks

Check Result
Perpetuity growth is below the risk-free rate pass
Perpetuity growth is below WACC pass
WACC is within the configured operating-company range pass
Terminal-year FCFF is positive pass
Terminal capex converges to D&A pass
Terminal-value concentration within review band
Implied price differs from spot by more than 30% review required

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks 4/4 evidenced checks
Lynch-inspired balance-and-growth checks 4/4 evidenced checks

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:43:55.675152 UTC; latest reported fiscal period: 2026-04-30 00:00:00. Default assumptions: five-year forecast, mid-year discounting for explicit FCFF, a maximum 2.50% perpetuity-growth rate below both WACC and the risk-free rate, historical operating-ratio persistence, and capex convergence to D&A by year five. No sell-side consensus or management guidance is substituted for reported inputs. This is research and analysis only, not personalized financial advice.

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