NetApp

Methodology

NetApp's data storage solutions create relatively predictable earnings from enterprise customers and cloud service providers, though technology transitions and competitive dynamics add variability. The shift to all-flash arrays and cloud data services provides growth visibility. The calculation works reasonably well when normalizing for product cycle transitions and focusing on recurring software and support revenue.

Methodology

NetApp typically trades at moderate PEG ratios reflecting the mature enterprise storage market offset by cloud transformation opportunities. The metric should account for shifting business mix toward higher-margin software and services. Compare to pure storage competitors and diversified infrastructure vendors while considering NetApp's hybrid cloud positioning.

Methodology

NetApp offers a meaningful dividend with management balancing shareholder returns against R&D and cloud investments. The dividend adds significant value to total returns for this established storage provider. PEGY better captures total return potential for investors seeking both modest growth from cloud transitions and reliable income.