NetScout Systems, Inc.

NasdaqGS:NTCT Stock Report

Market Cap: US$1.6b

NetScout Systems Valuation

Is NTCT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of NTCT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NTCT ($21.81) is trading below our estimate of fair value ($44.05)

Significantly Below Fair Value: NTCT is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NTCT?

Key metric: As NTCT is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for NTCT. This is calculated by dividing NTCT's market cap by their current revenue.
What is NTCT's PS Ratio?
PS Ratio2x
SalesUS$787.19m
Market CapUS$1.56b

Price to Sales Ratio vs Peers

How does NTCT's PS Ratio compare to its peers?

The above table shows the PS ratio for NTCT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.4x
AAOI Applied Optoelectronics
8.2x50.7%US$1.7b
INFN Infinera
1.1x9.7%US$1.6b
HLIT Harmonic
2.3x9.4%US$1.5b
EXTR Extreme Networks
2x8.7%US$2.1b
NTCT NetScout Systems
2x2.5%US$1.6b

Price-To-Sales vs Peers: NTCT is good value based on its Price-To-Sales Ratio (2x) compared to the peer average (3.4x).

Price to Sales Ratio vs Industry

How does NTCT's PS Ratio compare vs other companies in the US Communications Industry?

11 CompaniesPrice / SalesEstimated GrowthMarket Cap
COMM CommScope Holding Company
0.2x1.0%US$1.01b
CMTL Comtech Telecommunications
0.2x4.3%US$94.97m
TESS TESSCO Technologies
0.2xn/aUS$83.30m
CMBM Cambium Networks
0.2x12.6%US$33.33m
NTCT 2.0xIndustry Avg. 1.1xNo. of Companies11PS012345+
11 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: NTCT is expensive based on its Price-To-Sales Ratio (2x) compared to the US Communications industry average (1.1x).

Price to Sales Ratio vs Fair Ratio

What is NTCT's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NTCT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2x
Fair PS Ratio4.4x

Price-To-Sales vs Fair Ratio: NTCT is good value based on its Price-To-Sales Ratio (2x) compared to the estimated Fair Price-To-Sales Ratio (4.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst NTCT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$21.81
US$21.78
-0.2%
1.0%US$22.00US$21.55n/a2
Nov ’25US$20.46
US$21.78
+6.4%
1.0%US$22.00US$21.55n/a2
Jun ’25US$20.54
US$23.38
+13.8%
2.7%US$24.00US$22.75n/a2
May ’25US$19.78
US$23.88
+20.7%
4.7%US$25.00US$22.75n/a2
Apr ’25US$21.81
US$23.88
+9.5%
4.7%US$25.00US$22.75n/a2
Mar ’25US$21.54
US$23.92
+11.0%
3.8%US$25.00US$22.75n/a3
Feb ’25US$21.84
US$23.92
+9.5%
3.8%US$25.00US$22.75n/a3
Jan ’25US$21.95
US$24.25
+10.5%
4.4%US$25.00US$22.75n/a3
Dec ’24US$20.54
US$26.87
+30.8%
9.8%US$30.61US$25.00n/a3
Nov ’24US$21.78
US$28.54
+31.0%
8.8%US$30.61US$25.00US$20.463
Oct ’24US$28.02
US$32.00
+14.2%
6.3%US$34.00US$30.00US$21.262
Sep ’24US$28.53
US$32.00
+12.2%
6.3%US$34.00US$30.00US$21.482
Aug ’24US$28.31
US$32.00
+13.0%
6.3%US$34.00US$30.00US$19.542
Jul ’24US$30.95
US$32.00
+3.4%
6.3%US$34.00US$30.00US$18.522
Jun ’24US$30.42
US$32.00
+5.2%
6.3%US$34.00US$30.00US$20.542
May ’24US$26.92
US$33.00
+22.6%
9.1%US$36.00US$30.00US$19.782
Apr ’24US$28.65
US$33.00
+15.2%
9.1%US$36.00US$30.00US$21.812
Mar ’24US$28.10
US$33.00
+17.4%
9.1%US$36.00US$30.00US$21.542
Feb ’24US$32.32
US$33.00
+2.1%
9.1%US$36.00US$30.00US$21.842
Jan ’24US$32.51
US$33.50
+3.0%
7.5%US$36.00US$31.00US$21.952
Dec ’23US$37.90
US$33.50
-11.6%
7.5%US$36.00US$31.00US$20.542
Nov ’23US$36.02
US$33.50
-7.0%
7.5%US$36.00US$31.00US$21.782

Analyst Forecast: Target price is lower than the current share price.

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