Stock fact sheet · data as of
NetApp, Inc. (NTAP): fair value, margin of safety and Wheel Score
Technology · Computer Hardware · United States · Quality / Blue-Chip
Is NTAP undervalued?
NTAP closed at 214.70 on 16 Oct 2026, more than 30% above the GLS average fair value of 122.32. Only 3 of the 9 models that produced a value sit above the price. By our models the shares are priced well beyond what the filed earnings, cash flow and book value support; the Sunday Scan drops names like this at the "below fair value" rule.
There is a wide gap between DDM (30.61) and Payback Time (228.05). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files NTAP under Quality / Blue-Chip: a high moat score and a high health score together.
Nine valuation models for NTAP
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 72.67 | -66% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 35.24 | -84% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 226.27 | +5% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 84.96 | -60% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 124.95 | -42% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 217.77 | +1% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 228.05 | +6% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 30.61 | -86% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 80.39 | -63% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -18.41 | -109% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 219.30 | +2% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
NetApp, Inc. scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. A GLS Moat score of 7.8/10 puts NTAP among the more durable businesses we track: over ten years the metrics the score watches (revenue, EPS, book value, margins, cash flow, ROIC) have mostly moved the right way, year after year.
Returns on capital are high - ROIC 31.2%, ROE 94.4%, ROA 11.9% - with debt at 2.02 times equity and a free-cash-flow yield of 3.9%. Debt of 2.02 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.
The dividend yield is 0.97% with a payout ratio of 29% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Product 49%, Support 36%, Public Cloud 10% (quarter Q1 FY2027).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 31.2% |
|---|---|---|---|
| GLS Moat | 7.8 / 10 | ROE | 94.4% |
| Debt / equity | 2.02 | ROA | 11.9% |
| Free-cash-flow yield | 3.9% | Payout ratio | 29% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 66: Good
With a Wheel Score of 66 - the Good band - NetApp, Inc. falls just short of the Sunday Scan's "70 or higher" rule. The parts: Value 0/25, Health 16/20, Moat 12/15, Premium 20/20, Stability 19/20; Value (0/25) scores lowest.
Implied volatility is 50% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. The option chain is deep: 54,581 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 2.8M shares a day on a market cap of $42.2B, with a beta of 1.45 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 19 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -76% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 12 / 15 | moat 7.8/10 | |
| Premium | 20 / 20 | implied volatility 50% | |
| Stability | 19 / 20 | 2.8M shares/day, $42.2B cap, beta 1.45 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 1 Dec 2026, 46 days away - outside the window of a 30-45-day put sold today.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Computer Hardware
The 12 companies below are the closest to NetApp, Inc. by market cap within the Computer Hardware industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| P Everpure, Inc. | 141.46 | 14.70 | -863% | 56Fair | $47.1B |
| HPQ HP Inc. | 30.85 | 45.36 | +32% | 87Prime | $27.8B |
| SMCI Super Micro Computer, Inc. | 35.78 | 107.57 | +67% | 45Weak | $23.5B |
| HPE Hewlett Packard Enterprise Company | 58.63 | 33.75 | -74% | 57Fair | $77.8B |
| LOGI Logitech International S.A. | 105.16 | 112.89 | +7% | 82Prime | $15.1B |
| IONQ IonQ, Inc. | 34.35 | - | - | 45Weak | $13.9B |
| WDC Western Digital Corporation | 364.10 | 555.08 | +34% | 83Prime | $136.3B |
| STX Seagate Technology Holdings plc | 713.54 | 375.66 | -90% | 59Fair | $162.3B |
| SNDK Sandisk Corporation | 1,403.34 | 2,168.82 | +35% | 78Good | $202.8B |
| QNT Quantinuum Inc. Class A Common Stock | 33.03 | 12.26 | -169% | 39Weak | $8.7B |
| ANET Arista Networks, Inc. | 185.58 | 109.22 | -70% | 60Fair | $234.1B |
| DELL Dell Technologies Inc. | 474.06 | 442.84 | -7% | 75Good | $301.4B |
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Start free See the Sunday ScanQuestions about NTAP
Is NTAP undervalued right now?
No: at 214.70 the stock trades 76% above the GLS average fair value of 122.32 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of NTAP and what does it mean?
NTAP scores 66 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for NTAP?
122.32 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does NetApp, Inc. report earnings next?
The next earnings report is due on 1 Dec 2026 (after the close), 46 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does NTAP have listed options, and how liquid are they?
Yes. The nightly snapshot found 734 listed contracts with 54,581 open interest across all expiries and implied volatility of 50% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.