# NetScout Systems Inc. (NTCT) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Technology / Software. Price $37.22, market value $2.7 billion.

## Valuation
- **P/E (trailing): 22.7×** (5-yr avg 42.1×, 3-yr avg 24.5×). NetScout Systems Inc. trades at 22.7× trailing earnings, well below its own five-year average of 42.1×: cheap by its own standards. The Technology median in the September 2026 study was 32.1×. Forward P/E is 13.3×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.11**. A PEG of 0.11 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 3.1×**. Each dollar of revenue is priced at 3.1×.
- **Price / book: 1.6×**. The shares trade at 1.6× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 11.3×**. Enterprise value is 11.3× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 9.6%** (5-yr avg 9.7%). Free cash flow equals 9.6% of the market value, in line with its five-year average of 9.7%. Above 5% is generally attractive.
- **Earnings yield: 4.4%**. The inverse of the P/E: 4.4% of the price is earned each year.

## Profitability
- **Gross margin: 79.8%**. NetScout Systems Inc. keeps 79.8% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 14.8%**. 14.8% of revenue is left after running the business.
- **Net margin: 11.1%**. 11.1% of each dollar of sales reaches the bottom line.
- **Return on equity: 5.8%**. 5.8% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 9.7%**. Return on all capital, debt included, is 9.7%.
- **Return on assets: 5.1%**. Each dollar of assets produces 5.1% of profit.

## Growth
- **Revenue growth (1 yr): 4.5%** (3-yr -2.0%/yr, 5-yr 0.7%/yr). Revenue grew 4.5% over the last year, against 0.7% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 125.4%** (3-yr 16.6%/yr, 5-yr 38.0%/yr). Earnings per share rose 125.4%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 25.0%/yr**. Free cash flow has compounded at 25.0% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.00**. Debt is 0.00 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. NetScout Systems Inc. holds more cash than debt.
- **Current ratio: 1.85** (quick 1.85). Current assets cover the next year's liabilities 1.85 times.
- **Altman Z-score: 4.00**. A Z-score of 4.00 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend: none**. NetScout Systems Inc. does not currently pay a dividend.

## Price and momentum
- **Total return (1 yr): 48.6%** (YTD 37.5%, 3-mo -8.3%). The shares are up 48.6% over twelve months including dividends.
- **From 52-week high: -17.8%** (50.1% above the low). Trading 18% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 37**. An RSI of 37 is neutral.
- **Beta (1 yr): 1.04** (volatility 32%). Beta of 1.04 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=NTCT · Page: https://foliofundamentals.com/stocks/ntct

Not investment advice.
