Latest Ratios: P/E Ratio 30.3x · EV/EBITDA 19.6x · ROE 106.7%. (1997–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $38.2B | $21.6B | $18.8B | $21.8B | $13.8B | $16.8B | $16.9B | $10.2B | $18.9B | $18.4B | $11.2B |
| Enterprise Value | $37.1B | $20.5B | $19.5B | $22.5B | $14.2B | $15.6B | $15.1B | $9.4B | $18.3B | $17.4B | $10.9B |
| P/E Ratio → | 30.33 | 17.09 | 15.83 | 22.08 | 10.86 | 17.91 | 23.12 | 12.43 | 16.15 | 237.79 | 22.02 |
| P/S Ratio | 5.52 | 3.12 | 2.85 | 3.47 | 2.17 | 2.65 | 2.94 | 1.88 | 3.07 | 3.11 | 2.03 |
| P/B Ratio | 28.42 | 16.01 | 18.04 | 19.00 | 11.94 | 20.02 | 24.64 | 42.14 | 17.31 | 8.89 | 4.03 |
| P/FCF | 20.44 | 11.57 | 14.02 | 14.23 | 15.94 | 17.03 | 14.41 | 10.90 | 16.15 | 13.79 | 13.81 |
| P/OCF | 18.48 | 10.47 | 12.46 | 12.92 | 12.50 | 13.85 | 12.66 | 9.62 | 14.07 | 12.43 | 11.36 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.97 | 2.97 | 3.59 | 2.23 | 2.47 | 2.63 | 1.73 | 2.98 | 2.94 | 1.97 |
| EV / EBITDA | 19.58 | 10.84 | 12.35 | 15.33 | 10.77 | 11.55 | 11.71 | 7.87 | 12.93 | 13.12 | 12.21 |
| EV / EBIT | 21.89 | 12.12 | 13.48 | 16.97 | 12.54 | 13.36 | 14.58 | 9.36 | 13.83 | 13.77 | 16.16 |
| EV / FCF | — | 10.99 | 14.58 | 14.72 | 16.36 | 15.84 | 12.90 | 9.99 | 15.70 | 13.02 | 13.41 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 70.7% | 70.7% | 70.2% | 70.7% | 66.2% | 66.8% | 66.4% | 66.9% | 64.2% | 62.6% | 61.4% |
| Operating Margin | 24.5% | 24.5% | 20.3% | 19.4% | 16.0% | 18.3% | 17.9% | 17.5% | 19.9% | 19.0% | 12.0% |
| Net Profit Margin | 18.4% | 18.4% | 18.0% | 15.7% | 20.0% | 14.8% | 12.7% | 15.1% | 19.0% | 1.3% | 9.2% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 106.7% | 106.7% | 108.5% | 85.6% | 127.6% | 123.0% | 157.5% | 123.0% | 74.1% | 3.1% | 18.0% |
| ROA | 11.8% | 11.8% | 11.5% | 10.0% | 12.8% | 9.7% | 8.6% | 10.1% | 12.6% | 0.8% | 5.2% |
| ROIC | 124.4% | 124.4% | 54.4% | 53.2% | 128.0% | — | — | — | 113.8% | 48.1% | 20.7% |
| ROCE | 26.3% | 26.3% | 22.4% | 20.0% | 16.4% | 19.3% | 21.0% | 21.5% | 22.0% | 19.2% | 11.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.84 | 1.84 | 3.36 | 2.31 | 2.32 | 3.51 | 4.02 | 7.49 | 1.64 | 0.93 | 0.76 |
| Debt / EBITDA | 1.31 | 1.31 | 2.21 | 1.81 | 2.03 | 2.18 | 2.13 | 1.52 | 1.26 | 1.46 | 2.38 |
| Net Debt / Equity | — | -0.81 | 0.72 | 0.65 | 0.32 | -1.40 | -2.59 | -3.50 | -0.49 | -0.49 | -0.12 |
| Net Debt / EBITDA | -0.58 | -0.58 | 0.47 | 0.51 | 0.28 | -0.87 | -1.38 | -0.71 | -0.38 | -0.77 | -0.36 |
| Debt / FCF | — | -0.59 | 0.56 | 0.49 | 0.42 | -1.19 | -1.52 | -0.90 | -0.46 | -0.76 | -0.40 |
| Interest Coverage | 20.93 | 20.93 | 22.61 | 20.73 | 16.91 | 16.00 | 14.00 | 18.16 | 22.86 | 20.34 | 12.94 |
Net cash position: cash ($3.6B) exceeds total debt ($2.5B)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.44 | 1.44 | 1.26 | 1.19 | 1.35 | 1.50 | 1.74 | 1.18 | 1.45 | 1.89 | 1.53 |
| Quick Ratio | 1.39 | 1.39 | 1.22 | 1.15 | 1.30 | 1.45 | 1.71 | 1.14 | 1.42 | 1.86 | 1.49 |
| Cash Ratio | 1.27 | 1.27 | 0.82 | 0.79 | 0.89 | 1.05 | 1.33 | 0.80 | 1.01 | 1.49 | 1.22 |
| Asset Turnover | — | 0.64 | 0.61 | 0.63 | 0.65 | 0.63 | 0.61 | 0.72 | 0.70 | 0.60 | 0.58 |
| Inventory Turnover | 10.23 | 10.23 | 10.53 | 9.87 | 12.89 | 10.28 | 16.92 | 12.34 | 16.80 | 17.56 | 13.06 |
| Days Sales Outstanding | — | 67.78 | 69.20 | 58.64 | 56.63 | 71.06 | 60.05 | 65.62 | 72.22 | 64.65 | 48.34 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.1% | 1.9% | 2.3% | 1.9% | 3.1% | 2.7% | 2.5% | 4.3% | 2.1% | 1.2% | 1.9% |
| Payout Ratio | 32.4% | 32.4% | 35.8% | 42.2% | 33.9% | 47.6% | 58.5% | 53.6% | 34.5% | 281.6% | 40.9% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.3% | 5.9% | 6.3% | 4.5% | 9.2% | 5.6% | 4.3% | 8.0% | 6.2% | 0.4% | 4.5% |
| FCF Yield | 4.9% | 8.6% | 7.1% | 7.0% | 6.3% | 5.9% | 6.9% | 9.2% | 6.2% | 7.3% | 7.2% |
| Buyback Yield | 2.5% | 4.4% | 6.1% | 4.1% | 6.1% | 3.6% | 0.7% | 13.8% | 11.2% | 4.3% | 6.3% |
| Total Shareholder Yield | 3.6% | 6.3% | 8.4% | 6.0% | 9.3% | 6.2% | 3.3% | 18.1% | 13.3% | 5.5% | 8.2% |
| Shares Outstanding | — | $199M | $209M | $213M | $220M | $229M | $226M | $233M | $259M | $276M | $281M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying NTAP stock.
NetApp, Inc.'s current P/E ratio is 30.3x. The historical average is 38.5x. This places it at the 54th percentile of its historical range.
NetApp, Inc.'s current EV/EBITDA is 19.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 25.4x.
NetApp, Inc.'s return on equity (ROE) is 106.7%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 40.0%.
Based on historical data, NetApp, Inc. is trading at a P/E of 30.3x. This is at the 54th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
NetApp, Inc.'s current dividend yield is 1.08% with a payout ratio of 32.4%.
NetApp, Inc. has 70.7% gross margin and 24.5% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
NetApp, Inc.'s Debt/EBITDA ratio is 1.3x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Hyperscaler vertical integration threat
Metrics are mathematically derived from official filings.
Hybrid Discount vs. Software Peers
NetApp's forward P/E of 23.25 and EV/EBITDA of 16.64 appear to price the company as a mature hardware vendor, creating a potential valuation gap relative to pure-play software peers like Pure Storage.
The current valuation multiples suggest the market is applying a 'hybrid' discount, valuing NetApp more in line with legacy infrastructure peers like HPE (EV/EBITDA 19.90) than with high-growth software-defined storage firms. This discount may persist until the Public Cloud segment's recurring revenue reaches a scale that convincingly offsets the hardware business's cyclicality. Investors should monitor whether the PEG ratio of 2.01 adequately compensates for the company's reaccelerating growth trajectory.
Software Mix Sustains Premium Margins
NetApp's gross margin has stabilized above 70% for five consecutive quarters, a level that appears structurally supported by its high-margin software and support services, significantly outperforming hardware-centric peers.
The consistent 70%+ gross margin is a clear indicator of a software/service-heavy revenue mix, as pure hardware vendors like Dell and HPE typically operate at much lower gross margins. This premium is driven by the high-margin recurring support contracts within the Hybrid Cloud segment and the growing Public Cloud services. The stability of this margin, despite component cost fluctuations, suggests strong pricing power and a successful transition toward higher-value software offerings.
ROIC Expansion Driven by Margin & Efficiency
Return on Invested Capital has expanded significantly from 11.1% in 2025Q1 to 26.8% in 2027Q1, indicating the company is successfully compounding returns through improved profitability and capital efficiency.
The ROIC expansion appears to be driven by both margin improvement and better asset utilization, as evidenced by the concurrent rise in operating margin and asset turnover. This trend suggests the company's strategic pivot is translating into tangible value creation for shareholders. The current ROIC of 26.8% is well above the company's cost of capital, indicating it is generating economic profit and reinvesting at attractive rates.
Working Capital Swings Mask Underlying Strength
The cash conversion cycle has been volatile, ranging from -8 to 16 days over the past ten quarters, primarily driven by lumpy collections and payment cycles rather than operational inefficiency.
The volatility in the CCC is largely attributable to significant swings in days sales outstanding (DSO) and days inventory outstanding (DIO), which appear to be driven by the timing of large enterprise deals and component procurement. The underlying trend, however, shows a company with strong supplier leverage, as evidenced by a consistently high days payable outstanding (DPO) averaging around 85 days. This suggests NetApp effectively uses its balance sheet to fund operations, though the quarterly swings warrant monitoring for any signs of deteriorating collection efficiency.
Fortress Balance Sheet Enables Strategic Optionality
NetApp's debt-to-equity ratio has declined from 2.31 to 1.69 over the past ten quarters, reflecting a deliberate deleveraging trend that provides significant financial flexibility for strategic investments or shareholder returns.
The declining leverage trend, coupled with a robust cash position of $3.584 billion, indicates a fortress-like balance sheet that is becoming even stronger. This low-leverage profile provides a substantial buffer against economic downturns and gives management ample capacity to pursue acquisitions or return capital to shareholders without straining the balance sheet. The interest coverage ratio, where available, remains comfortably high, suggesting minimal debt service risk.
The Misapplied P/E Multiple
The P/E ratio is the most commonly misapplied metric for NetApp, as it obscures the company's transition from a hardware vendor to a software-led, recurring revenue model with different growth and margin characteristics.
Investors focusing solely on the P/E ratio may misinterpret NetApp's valuation relative to pure-play software companies, failing to account for the significant portion of revenue still derived from lower-margin hardware. A more appropriate metric would be the EV/EBITDA multiple, which better captures the cash-generating power of the business and is less distorted by the company's non-cash charges like stock-based compensation. Alternatively, analyzing the valuation of the Public Cloud segment separately from the Hybrid Cloud segment could provide a clearer picture of the company's true growth potential.