Where Does Sandisk Stand After 140% Surge and Data Storage Optimism in 2025?

Simply Wall St

If you have been keeping an eye on Sandisk lately, you're not alone. The stock has caught the attention of investors after a run-up that few could have predicted. In just seven days, Sandisk shares have soared 31.7%. If you zoom out to the last 30 days, you are looking at a jaw-dropping 143.1% gain. Since the start of this year, the stock is up an incredible 244.8%. This sort of momentum naturally raises a critical question for anyone deciding their next move: is now still a good time to buy, hold, or consider taking profits?

There is no denying that some of this surge is tied to market shifts that have been favorable for storage technology players like Sandisk. Enthusiasm around increased demand for data storage, driven by both consumer trends and enterprise investments, seems to have added fuel to the rally. As optimism grows, so too does the debate about whether the stock's price is still justified compared to its underlying worth.

To help frame this, we calculate a value score for Sandisk based on six key valuation checks. The company comes in strong, hitting four out of six criteria for being undervalued and earning a value score of 4. This suggests there is substance behind the sizzle, but let's not get ahead of ourselves.

Before you make your next move, it is time to take a closer look at how Sandisk’s current price lines up with fundamentals using the most common valuation approaches. Stay tuned, because later we will explore if there is an even sharper way to cut through all the noise and truly assess what the stock is worth.

Sandisk delivered 0.0% returns over the last year. See how this stacks up to the rest of the Tech industry.

Approach 1: Sandisk Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow (DCF) model estimates a company's true value by projecting its future cash flows and then discounting those amounts back to today's dollars. This approach captures both near-term performance and long-term growth potential, offering a comprehensive view of underlying worth.

For Sandisk, the DCF analysis begins with its latest twelve months free cash flow of negative $131.8 Million. While this is currently below zero, analysts project a robust financial turnaround. According to available projections, Sandisk's free cash flow is expected to reach $539.6 Million by 2026, $1.03 Billion by 2028, and continue rising each year through 2035. The first five years of these forecasts are based on analyst estimates, with longer-term numbers extrapolated by Simply Wall St to provide a full 10-year perspective.

By discounting each of these future cash flows back to their present value, the model calculates an estimated intrinsic value for Sandisk of $164.69 per share. Compared to the current share price, this DCF valuation suggests Sandisk is trading at a 24.6% discount, indicating the stock is significantly undervalued.

Result: UNDERVALUED

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Sandisk.

SNDK Discounted Cash Flow as at Oct 2025

Our Discounted Cash Flow (DCF) analysis suggests Sandisk is undervalued by 24.6%. Track this in your watchlist or portfolio, or discover more undervalued stocks.

Approach 2: Sandisk Price vs Sales (P/S)

The Price-to-Sales (P/S) ratio is a popular metric for valuing technology companies like Sandisk. It can provide useful insight even when earnings are negative or volatile. For profitable and growth-focused companies, P/S helps gauge how much investors are willing to pay for each dollar of revenue, giving a clearer sense of market sentiment when profits are not the best benchmark.

Growth prospects and risk play a big part in what counts as a “normal” or fair P/S ratio. Fast-growing companies often justify higher P/S multiples, while those facing more risk or headwinds typically trade at lower ones. Looking at the numbers, Sandisk’s current P/S ratio stands at 2.46x. By comparison, the tech industry average is 2.16x, and the peer group average is 4.38x. This puts Sandisk slightly above the sector but well below many direct peers.

Simply Wall St’s proprietary Fair Ratio for Sandisk comes in at 2.56x. Unlike broad industry or peer group averages, this Fair Ratio takes into account Sandisk’s specific growth outlook, profit margins, market cap, and risk profile. This means it better reflects what investors should pay for the company’s unique qualities, rather than relying just on general market figures.

With a Fair Ratio of 2.56x and an actual P/S of 2.46x, Sandisk’s current valuation is almost perfectly in line with what would be expected for its profile, neither too expensive nor too cheap by this measure.

Result: ABOUT RIGHT

NasdaqGS:SNDK PS Ratio as at Oct 2025

PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Sandisk Narrative

Earlier, we mentioned that there is an even better way to understand valuation. Let's introduce you to Narratives. A Narrative is a simple, yet powerful, method of connecting a company’s story with its financial future. This approach lets you describe your perspective on Sandisk by linking fair value estimates, projections for revenue, earnings, and margins to your own outlook on the company.

Narratives help you bridge the gap between what you know about Sandisk and the numbers that drive its valuation. They translate your view into a concrete financial forecast that generates a personalized fair value. Available right now on Simply Wall St’s Community page, Narratives are designed to be easy for anyone to use and are relied on by millions of investors.

With Narratives, you can quickly compare your fair value to the current market price, making it simpler to decide whether it is time to buy, hold, or sell. When new news or earnings reports are released, your Narrative and fair value update dynamically so you always have the latest view.

For example, while some Sandisk Narratives see fair value as high as $210 per share, others set it as low as $97. This highlights how perspectives and assumptions can shape your investment decisions.

Do you think there's more to the story for Sandisk? Create your own Narrative to let the Community know!

NasdaqGS:SNDK Community Fair Values as at Oct 2025

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.

Valuation is complex, but we're here to simplify it.

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