Assessing NetApp (NTAP) Valuation After Recent Share Price Weakness

Why NetApp Is On Investors’ Radar Today

NetApp (NTAP) is back in focus after recent trading left the stock with a month return of about an 11% decline and a past 3 months return of roughly a 15% decline, inviting closer attention to its current valuation.

See our latest analysis for NetApp.

At around $98.81 per share, NetApp’s recent 7 day and 30 day share price returns of a 4.8% and 10.6% decline sit against a 1 year total shareholder return of a 15.9% decline. The 3 year and 5 year total shareholder returns of 60.9% and 68.3% keep the longer term picture in focus, suggesting recent momentum has been fading compared with earlier years.

If NetApp’s recent pullback has you reassessing your tech exposure, it could be a useful moment to look at other high growth tech and AI stocks that are moving for different reasons.

With NetApp trading around $98.81, showing recent share price declines but carrying a value score of 6 and a sizeable intrinsic discount, you have to ask: is this a reset worth considering, or is the market already pricing in future growth?

Most Popular Narrative: 19.5% Undervalued

Against NetApp’s last close of $98.81, the most followed narrative points to a fair value of $122.81, putting valuation and assumptions firmly in the spotlight.

Accelerating adoption of AI and analytics workloads across industries is driving demand for unified, high-performance, and scalable data infrastructure, with NetApp securing over 125 AI wins in Q1 (more than doubling year-over-year); this trend is expected to drive revenue and earnings growth as AI deployments move from proofs-of-concept to large-scale production.

Read the complete narrative.

Curious how steady revenue expansion, fatter margins and a tighter share count combine to support that higher value? The narrative leans on detailed forecasts for earnings, cash flows and a lower future P/E multiple than many large tech names. If you want to see exactly how those moving parts fit together into $122.81, the full story is one click away.

Result: Fair Value of $122.81 (UNDERVALUED)

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

However, the story can change quickly if traditional product revenue pressure persists or if reliance on hyperscaler partners starts to squeeze margins more than expected.

Find out about the key risks to this NetApp narrative.

Build Your Own NetApp Narrative

If you see the numbers differently or simply want to test your own assumptions, you can spin up a custom NetApp story in minutes: Do it your way.

A good starting point is our analysis highlighting 6 key rewards investors are optimistic about regarding NetApp.

Looking for more investment ideas?

If NetApp has you thinking more broadly about where to put fresh capital to work, do not stop here. The next idea you skip could be the one that fits best.

• Spot early stage opportunities that still meet quality checks by scanning these 3514 penny stocks with strong financials for companies that already show stronger fundamentals than the typical micro cap.
• Ride the AI trend with more focus by zeroing in on these 23 AI penny stocks that tie artificial intelligence to real revenue and business models rather than just headlines.
• Hunt for price misalignments by filtering for these 886 undervalued stocks based on cash flows where current market prices sit below cash-flow-based estimates, giving you more ideas to investigate in detail.

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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