Thinking about what to do with Nutanix stock right now? You’re not alone. Whether you’ve owned it for a while or you’re scouting for your next smart tech play, Nutanix certainly has people talking. The share price has seen a bit of everything this year. After a strong run over the longer term, boasting a five-year climb of 167.2% and a three-year total return of 151.8%, Nutanix took a breather recently, with a slight dip of 1.0% over the last week and a 12.9% slide this past month. But don’t forget, it’s still up 10.4% year-to-date.
Some of these shifts reflect broad moves across tech stocks as investors collectively reassess growth expectations and risks in an evolving market. News on cloud computing adoption and enterprise IT spending, sectors Nutanix is directly tied to, has fueled optimism about continued demand for its platform in the long run, even as near-term volatility has picked up.
So, is Nutanix undervalued today? By the numbers, the company scores 1 out of 6 checks for being undervalued, meaning that by most traditional measures, it does not exactly scream “bargain.” But valuations can be more nuanced than any one-size-fits-all framework allows. Let’s walk through the main valuation approaches analysts use. Stay tuned, because at the end we’ll talk about an even smarter way to judge Nutanix’s true worth.
Nutanix scores just 1/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.
The Discounted Cash Flow (DCF) model is a common valuation approach that estimates a company’s intrinsic value by projecting its future cash flows and discounting them back to today’s dollars. It’s a bit like trying to figure out what tomorrow’s money is truly worth right now.
For Nutanix, current Free Cash Flow stands at $739.3 Million and analysts expect this figure to grow over time, reaching $899.1 Million by 2027. Looking further out, projections extrapolated beyond five years estimate Free Cash Flow could rise to about $1.36 Billion by 2035. All projections are in US dollars, and they reflect industry expectations for continued growth in cloud services and enterprise IT.
According to this model, the estimated intrinsic value per share for Nutanix comes out to $66.65. The DCF analysis suggests that shares are about 1.5% above this fair value, indicating the stock is marginally overvalued by this single measure.
Simply Wall St performs a valuation analysis on every stock in the world every day (check out Nutanix’s valuation analysis). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes.
For profitable companies like Nutanix, the Price-to-Earnings (PE) ratio is a common and useful way to judge valuation. The PE ratio makes it easy to compare what investors are willing to pay for each dollar of earnings, and it works especially well for mature tech businesses that are consistently generating profits.
In general, growth expectations and risk play a big part in setting what a “normal” or “fair” PE ratio should be. High-growth companies, or those seen as less risky, often trade at higher multiples, while slower growth or riskier peers tend to have lower PE ratios. For context, Nutanix is currently trading at a PE ratio of 96.6x. This is noticeably higher than the Software industry average of 34.9x, and also above its peer group average of 52.9x.
However, Simply Wall St introduces the concept of a “Fair Ratio,” in this case 51.9x, which represents the preferred PE multiple for Nutanix based on a blend of earnings growth outlook, industry trends, profit margins, company size and relevant risks. This method provides a more tailored benchmark than just comparing to the sector or peers, giving investors a clearer picture of whether a stock is reasonably valued relative to its unique circumstances.
Comparing Nutanix’s actual PE ratio (96.6x) to its Fair Ratio (51.9x), the stock is significantly above what would be justified by its fundamentals alone. That tips the scales toward an overvalued assessment at current prices.
Earlier we mentioned that there’s an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is far more than a number; it’s your story about a company, supported by your own assumptions for its growth, margins, and risks, all linked directly to a dynamic fair value. Narratives on Simply Wall St’s Community page let investors easily blend what they know about Nutanix’s strategic moves, partnerships, or tech trends into a real forecast and see the implied fair value update when new information, like earnings releases or news, comes in.
This helps you decide when to buy or sell by comparing your Fair Value (based on your Narrative) to the current share price, making investment decisions clearer and more personalized. Because every investor’s perspective is unique, you might believe Nutanix’s cloud integrations and market leadership could push its fair value as high as $95.0, while someone more cautious about competition and customer concentration might set it down at $71.0. The platform allows you to see and refine your own Narrative any time, reflecting the real-world, evolving nature of investing.
NasdaqGS:NTNX 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.
