Definitive Analysis
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NetApp, Inc. (0K6F.L)

Company Dividend Discount ModelIndustry: Hardware, Equipment & PartsSector: Technology

Valuation Snapshot

Stable Growth$65.69 - $107.60$84.38
Multi-Stage$79.76 - $87.31$83.47
Blended Fair Value$83.92
Current Price$104.94
Upside-20.03%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS-0.69%7.41%2.072.032.112.182.092.141.971.051.021.03
YoY Growth--1.92%-3.70%-3.14%4.45%-2.73%8.93%88.32%2.88%-0.95%1.25%
Dividend Yield--1.97%1.61%2.73%3.05%2.62%4.84%3.33%1.32%2.34%3.89%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,177.00
(-) Cash Dividends Paid (M)418.00
(=) Cash Retained (M)759.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)235.40147.1388.28
Cash Retained (M)759.00759.00759.00
(-) Cash Required (M)-235.40-147.13-88.28
(=) Excess Retained (M)523.60611.88670.73
(/) Shares Outstanding (M)204.75204.75204.75
(=) Excess Retained per Share2.562.993.28
LTM Dividend per Share2.042.042.04
(+) Excess Retained per Share2.562.993.28
(=) Adjusted Dividend4.605.035.32
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate1.96%2.96%3.96%
Fair Value$65.69$84.38$107.60
Upside / Downside-37.40%-19.59%2.53%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,177.001,211.841,247.721,284.661,322.691,361.841,402.70
Payout Ratio35.51%46.41%57.31%68.21%79.10%90.00%92.50%
Projected Dividends (M)418.00562.43715.05876.211,046.281,225.661,297.50

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate1.96%2.96%3.96%
Year 1 PV (M)510.52515.53520.54
Year 2 PV (M)589.15600.76612.49
Year 3 PV (M)655.30674.77694.62
Year 4 PV (M)710.28738.55767.67
Year 5 PV (M)755.25793.02832.29
PV of Terminal Value (M)13,111.1813,766.8714,448.54
Equity Value (M)16,331.6817,089.5117,876.14
Shares Outstanding (M)204.75204.75204.75
Fair Value$79.76$83.47$87.31
Upside / Downside-23.99%-20.46%-16.80%

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