What is NetApp, Inc. (NTAP) DCF Fair Value and Intrinsic Value in 2026?

NetApp, Inc. (NTAP) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is NetApp, Inc.'s historical Return on Invested Capital (ROIC) and Moat Rating?

NetApp, Inc. operates in the Technology sector (Computer Hardware) with an economic moat rating of NARROW. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is NetApp, Inc.'s financial health rating and Piotroski F-Score?

NetApp, Inc.'s balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor NetApp, Inc. (NTAP) for quarterly SEC filing thesis breaks?

LocalAlpha audits NetApp, Inc.'s 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksNTAP

NTAP

NetApp, Inc.Technology / Software - InfrastructureINTACT

NetApp, Inc. provides a range of enterprise software, systems, and services that customers use to transform their data infrastructures in the United States, Canada, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. It operates through two segments, Hybrid Cloud and Public Cloud. The company offers data management software, such as NetApp ONTAP, ONTAP One, NetApp Snapshot, NetApp SnapCenter Backup Management, NetApp SnapMirror Data Replication, and NetApp SnapLock Data Compliance; and storage infrastructure solutions, including NetApp AFF and ASA A-Series and C-Series, NetApp AFX, NetApp Fabric Attached Storage (FAS), NetApp E/EF series, and NetApp StorageGRID. It also provides cloud storage services comprising Azure NetApp Files, Amazon FSx for NetApp ONTAP, and Google Cloud NetApp Volumes, as well as NetApp Cloud Volumes ONTAP. In addition, the company offers operational services, such as NetApp Data Infrastructure Insights and Instaclustr; and professional and support services include storage-as-a-service (STaaS), strategic consulting, professional, managed, and support services, as well as assessment, design, implementation, migration, and proactive support services to help customers optimize the performance and efficiency of their on-premises and hybrid multicloud storage environments. Further, it offers ransomware protection, data backup and recovery, and disaster recovery. It serves various industries comprising energy, financial services, government, technology, internet, life sciences, healthcare services, manufacturing, media, entertainment, animation, video postproduction, and telecommunications through a direct sales force and an ecosystem of partners, including the cloud providers. The company has a strategic alliance with Commvault Systems, Inc. to develop an integrated solution for enterprise data protection and cyber resilience. NetApp, Inc. was incorporated in 1992 and is headquartered in San Jose, California.

Share Price

$199.28

52W: $93.69 - $209.06

DCF Fair Value

$163.37

-22% Premium

Thesis Hub

P/E (TTM)

28.1x

ROIC

20%

Operating Margin

26.7%

FCF Yield

Debt / Equity

1.69x

Piotroski Score

7/9

Altman Z-Score

3.27

Market Cap

$39.1B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($163.37)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$163.37

MOS Buy Target (-25%)

$122.53

Valuation Overlays: DCF Fair Value ($163.37) 25% MOS Buy Target ($122.53) Revised Graham ($185.23) Graham Number ($34.88)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$199.28

DCF Fair Value

$163.80

-21.7% Premium

Starting Free Cash Flow ($M)$1,171M

$100M$1,171M (Reported)$50,000M

Stage 1 Growth (Years 1-5)13.3%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)-$1,100M (Net Cash)

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$12.9B

PV of Terminal Value

$18.1B

Implied Enterprise Value

$31.0B

Implied Equity Value

$32.1B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$1,327	$1,503	$1,703	$1,930	$2,186	$2,285	$2,387	$2,495	$2,607	$2,725
Present Value (PV)	$1,217	$1,265	$1,315	$1,367	$1,421	$1,362	$1,306	$1,252	$1,200	$1,151

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-471.2% Premium

$34.89

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $7.09BVPS: $7.63

Revised Graham Formula-7.6% Premium

$185.23

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings2.9% Yield

$5.68 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $1.1BYield: 2.9%

Reverse DCF: Market Growth Expectation

FAIR BARRIER

12.4% CAGR (Next 10 Yrs)

At the current price of $199.28, the market is assuming the business will compound Free Cash Flow at 12.4% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

ℹ Fair expectations: Requires steady execution.

Autonomous Thesis Underwriting

Surveil NTAP with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for NetApp, Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 26.7% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: NetApp, Inc. (NTAP) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for NetApp, Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, NetApp, Inc. has an estimated DCF intrinsic fair value of $163.37 per share compared to its current market price of $199.28. This represents an estimated 22.0% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $34.88.