Is NetApp, Inc. overvalued or undervalued?

As of 29 May 2025, the valuation grade for NetApp, Inc. has moved from fair to attractive, indicating a more favorable assessment of its market position. The company is currently considered undervalued, supported by a P/E ratio of 17, an EV to EBITDA ratio of 15.07, and a PEG ratio of 0.80, which suggests that the stock is priced below its growth potential.
In comparison with peers, NetApp's P/E ratio of 16.88 is lower than Seagate Technology Holdings Plc's 18.20, while Western Digital Corp. presents a much more attractive valuation at a P/E of 7.53. Additionally, NetApp's impressive ROE of 123.30% and ROCE of 33.38% further underscore its strong operational efficiency. Despite a recent decline in stock performance compared to the S&P 500, with a year-to-date drop of 10.17% versus the index's gain of 2.44%, the overall valuation metrics suggest that NetApp is positioned for potential upside.