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 significant improvement in its perceived value. The company appears to be undervalued, supported by a P/E ratio of 17, a PEG ratio of 0.80, and an EV to EBITDA ratio of 15.07, which are favorable compared to its peers. For instance, Seagate Technology has a much higher P/E of 26.40, while Western Digital shows a lower P/E of 11.75, highlighting NetApp's relative attractiveness in the IT hardware sector.
Despite some recent volatility, with a year-to-date return of 2.58% compared to the S&P 500's 13.30%, NetApp has demonstrated strong long-term performance, achieving a remarkable 152.53% return over the past five years. This performance, alongside its robust ROE of 123.30% and a solid dividend yield of 2.00%, reinforces the narrative that NetApp is currently undervalued in the market.