Is NetApp, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for NetApp, Inc. has moved from very expensive to attractive, indicating a shift towards a more favorable assessment. The company appears undervalued based on its current metrics, with a P/E ratio of 17, a PEG ratio of 0.80, and an EV to EBITDA ratio of 15.07, all suggesting a more appealing valuation compared to its peers. For instance, Seagate Technology Holdings has a significantly higher P/E ratio of 26.40, while Western Digital Corp. shows a lower P/E of 11.75, highlighting NetApp's relative attractiveness.
In terms of performance, NetApp's stock has outperformed the S&P 500 over the last three years with a return of 88.49% compared to the index's 81.19%, although it has lagged over the longer term, particularly in the 10-year period where it returned 152.53% versus the S&P 500's 227.77%. Overall, NetApp, Inc. presents a compelling investment opportunity given its attractive valuation metrics and recent stock performance relative to the broader market.