Stock fact sheet · data as of
NetScout Systems, Inc. (NTCT): fair value, margin of safety and Wheel Score
Technology · Software - Infrastructure · United States · Blend
Is NTCT undervalued?
At 38.76 (close of 16 Oct 2026), NTCT trades 12% over the GLS average fair value of 34.54. 2 of the 8 models land above the price and 6 below. A negative margin of safety costs Value points in the Wheel Score (7 of 25 here) - the models see no discount, which does not make the business a poor one, only the price a full one.
There is a wide gap between Lynch (10.05) and Payback Time (80.91). 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 NTCT under Blend.
Nine valuation models for NTCT
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 | 11.88 | -69% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 29.64 | -24% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 33.67 | -13% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 10.05 | -74% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 13.03 | -66% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 78.38 | +102% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 80.91 | +109% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 18.73 | -52% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 2.14 | -94% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 43.00 | +11% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
NetScout Systems, 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. On durability NTCT scores 5.0/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are moderate - ROIC 5.7%, ROE 5.8%, ROA 4.1% - with debt at 0.02 times equity and a free-cash-flow yield of 9.2%.
NetScout Systems, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Service 59%, Product 41% (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 | 5.7% |
|---|---|---|---|
| GLS Moat | 5.0 / 10 | ROE | 5.8% |
| Debt / equity | 0.02 | ROA | 4.1% |
| Free-cash-flow yield | 9.2% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 65: Good
With a Wheel Score of 65 - the Good band - NetScout Systems, Inc. falls just short of the Sunday Scan's "70 or higher" rule. The parts: Value 7/25, Health 16/20, Moat 8/15, Premium 20/20, Stability 14/20; Value (7/25) scores lowest.
Implied volatility is 43% 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. Chain open interest is thin - 1,787 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 506k shares a day on a market cap of $2.8B, with a beta of 0.69 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 14 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 7 / 25 | -12% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 8 / 15 | moat 5.0/10 | |
| Premium | 20 / 20 | implied volatility 43% | |
| Stability | 14 / 20 | 506k shares/day, $2.8B cap, beta 0.69 |
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 5 Nov 2026 (before the open), 20 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Software - Infrastructure
The 12 companies below are the closest to NetScout Systems, Inc. by market cap within the Software - Infrastructure 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 |
|---|---|---|---|---|---|
| TDC Teradata Corporation | 29.89 | 102.56 | +71% | 86Prime | $2.8B |
| CLBT Cellebrite DI Ltd. | 11.38 | 10.76 | -6% | 66Good | $2.9B |
| STNE StoneCo Ltd. | 11.48 | 145.93 | +92% | 80Prime | $2.6B |
| APPN Appian Corporation | 43.82 | 32.86 | -33% | 45Weak | $3.1B |
| AVPT AvePoint, Inc. | 14.87 | 12.24 | -21% | 59Fair | $3.1B |
| EEFT Euronet Worldwide, Inc. | 65.54 | 155.01 | +58% | 86Prime | $2.5B |
| PAYO Payoneer Global Inc. | 7.14 | 7.93 | +10% | 72Good | $2.4B |
| RAMP LiveRamp Holdings, Inc. | 37.61 | 76.12 | +51% | 72Good | $2.3B |
| GCT GigaCloud Technology Inc. | 59.34 | 105.83 | +44% | 83Prime | $2.1B |
| PAY Paymentus Holdings, Inc. | 30.61 | 24.61 | -24% | 57Fair | $3.9B |
| FOUR Shift4 Payments, Inc. | 39.34 | 84.21 | +53% | 76Good | $4.1B |
| TENB Tenable Holdings, Inc. | 38.12 | 9.62 | -296% | 58Fair | $4.2B |
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Start free See the Sunday ScanQuestions about NTCT
Is NTCT undervalued right now?
No: at 38.76 the stock trades 12% above the GLS average fair value of 34.54 (data as of 16 Oct 2026). The margin of safety is negative.
What is the Wheel Score of NTCT and what does it mean?
NTCT scores 65 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 NTCT?
34.54 per share as of 16 Oct 2026 - the simple average of the 8 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 NetScout Systems, Inc. report earnings next?
The next earnings report is due on 5 Nov 2026 (before the open), 20 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does NTCT have listed options, and how liquid are they?
Yes. The nightly snapshot found 100 listed contracts with 1,787 open interest across all expiries and implied volatility of 43% 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.