Stock fact sheet · data as of
NetScout Systems, Inc. (NTCT): fair value, margin of safety and Wheel Score
Ticker symbol NTCT · Technology · Software - Infrastructure · United States · Blend
Is NTCT undervalued?
At 38.10 (close of 5 Nov 2026), NTCT trades 10% 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 fails the "below fair value" Wheel Trade Filter - 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.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for NTCT, so the nightly engine files it under Blend (value score 39, growth score 39, out of 100).
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 | 11.91 | -69% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 29.64 | -22% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 33.67 | -12% | 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 | +106% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 80.91 | +112% | 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 | -51% | 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 | +13% | 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 "Piotroski 6 or more" Wheel Trade Filter with room to spare. A GLS Moat score of 3.6/10 is a weak reading: the accounts do not show returns and margins that competitors have been unable to wear down, so the Moat part of the Wheel Score contributes little.
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 9.3%.
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 | 3.6 / 10 | ROE | 5.8% |
| Debt / equity | 0.02 | ROA | 4.1% |
| Free-cash-flow yield | 9.3% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 34: Weak
With a Wheel Score of 34 NetScout Systems, Inc. sits in the Weak band. It fails filter 1, options that actually trade - options too quiet (325 open interest, 89 a day); and filter 3, below fair value - trades 10% above our fair value; Value (weak) is its weakest part.
Implied volatility is 45% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 325 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 741k shares a day on a market cap of $2.8B, with a beta of 0.72 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | options too quiet (325 open interest, 89 a day) |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Fails | trades 10% above our fair value |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 10% above fair value | |
| Premium | Strong | implied volatility 45% | |
| Moat | Fair | moat 3.6/10 | |
| Health | Good | Piotroski 7/9 | |
| Red Flags | Good | Red Flags score 85/100 | |
| Option trading | Weak | 89 contracts a day, 325 open interest | |
| Stability | Fair | beta 0.72, $2.8B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
NetScout Systems, Inc. reports earnings on 5 Nov 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
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 |
|---|---|---|---|---|---|
| EEFT Euronet Worldwide, Inc. | 70.65 | 152.70 | +54% | 81Good | $2.6B |
| CLBT Cellebrite DI Ltd. | 12.43 | 10.76 | -15% | 31Weak | $3.1B |
| PAYO Payoneer Global Inc. | 7.16 | 7.97 | +10% | 27Weak | $2.4B |
| TDC Teradata Corporation | 34.61 | 103.17 | +66% | 82Good | $3.2B |
| APPN Appian Corporation | 49.82 | 34.83 | -43% | 28Weak | $3.6B |
| AVPT AvePoint, Inc. | 16.90 | 12.24 | -38% | 35Weak | $3.6B |
| GCT GigaCloud Technology Inc. | 57.88 | 106.15 | +45% | 80Good | $2.1B |
| DLO Dlocal Limited | 13.90 | 32.03 | +57% | 57Fair | $4.1B |
| CORZZ Core Scientific, Inc. Tranche 2 Warrants | 12.89 | - | - | 11No options | $4.1B |
| CORZ Core Scientific, Inc. | 12.76 | - | - | 17Weak | $4.1B |
| NYAX Nayax Ltd. | 49.54 | 48.32 | -3% | 16No options | $1.9B |
| PRGS Progress Software Corporation | 44.79 | 72.05 | +38% | 52Fair | $1.8B |
Scan the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about NTCT
Is NTCT undervalued right now?
No: at 38.10 the stock trades 10% above the GLS average fair value of 34.54 (data as of 5 Nov 2026). The margin of safety is negative.
What is the Wheel Score of NTCT and what does it mean?
NTCT scores 34 out of 100 (Weak) - it fails Wheel Trade Filters 1, 3. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for NTCT?
34.54 per share as of 5 Nov 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), 0 days from the data date of 5 Nov 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 24 listed contracts with 325 open interest across all expiries and implied volatility of 45% 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.