/
DCF Valuation
Base-case fair value
$89.14
Intrinsic $118.85 · 25% MOS
Current price: $159.71
Base-case summary
Our base-case DCF for NetApp, Inc. (NTAP) projects 10 years of free cash flow growth at 3.4% for years 1–5 and 1.7% for years 6–10, anchored to 3.4% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from the 3-year average of positive free cash flow ($1.2B) — TTM FCF was negative, this produces an intrinsic value of $118.85 per share. A 25% safety margin gives a fair value of $89.14, suggesting the stock is currently 44% overvalued against the $159.71 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
TTM FCF is negative ($0). Projecting from a negative base produces nonsensical results, so this model uses the 3-year average of positive FCF ($1.2B) as the base instead. Treat this valuation as a rough estimate — it assumes a return to historical profitability.
Model inputs
Free Cash Flow (3yr avg)
$1.2B
Cash & equivalents
$3.0B
Total debt
$2.7B
Shares outstanding
200M