NetApp (NTAP) Could Be 2% Overvalued Following Governance Change

Governance change puts NetApp (NTAP) under a fresh spotlight

NetApp (NTAP) has proposed amending its Certificate of Incorporation to align with updated Delaware law on officer exculpation. This governance move is set for shareholder consideration at the 2026 Annual Meeting on September 9.

See our latest analysis for NetApp.

The governance proposal arrives after a strong run in NetApp’s stock, with a 30 day share price return of 15.78% and a year to date share price return of 67.65%, alongside a 1 year total shareholder return of 79.65% that points to firmly building momentum.

If this governance shift has you thinking more broadly about where capital is flowing in enterprise tech, it may be worth checking out 55 AI infrastructure stocks

After such a sharp move in NetApp and a governance reset that touches the C suite, the key issue now is simple: Does the current valuation still leave enough upside for new buyers, given the risks on the table?

Most Popular Narrative: 2% Overvalued

NetApp’s most followed narrative pegs fair value at $175.69, slightly below the last close at $178.50, which puts more scrutiny on what is driving that call.

Substantial growth in Keystone Storage-as-a-Service (up ~80% year-over-year) and increased deferred revenue (+9% year-over-year) indicate growing preference for subscription-based and as-a-service storage, supporting higher revenue visibility and margin expansion as mix continues to shift toward high-value services.

Read the complete narrative.

Want to see how this shift to subscriptions feeds into NetApp’s future earnings power? The narrative leans on steadier growth, rising margins, and a punchy earnings multiple.

Result: Fair Value of $175.69 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, NetApp’s reliance on hyperscaler partnerships, along with its exposure to higher component and memory costs, could pressure margins and challenge the current fair value narrative.

Find out about the key risks to this NetApp narrative.

Another view on NetApp’s valuation

While the leading NetApp narrative points to a fair value of $175.69 and labels the stock as slightly overvalued at $178.50, our DCF model tells a different story. On that measure, NetApp screens as undervalued, with a future cash flow value estimate of $196.09. Which lens do you trust more when real money is on the line?

Look into how the SWS DCF model arrives at its fair value.

Next Steps

If the split opinion on NetApp has you uncertain, take time now to review the complete picture of concerns and potential upside. You can evaluate both by checking the 3 key rewards and 1 important warning sign

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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