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Publication Date: 2026-01-06 14:28:00
Key Insights
- The projected fair value for Nutanix is US$74.89 based on 2 Stage Free Cash Flow to Equity
- Nutanix is estimated to be 32% undervalued based on current share price of US$50.56
- The US$70.70 analyst price target for NTNX is 5.6% less than our estimate of fair value
Does the January share price for Nutanix, Inc. (NASDAQ:NTNX) reflect what it’s really worth? Today, we will estimate the stock’s intrinsic value by estimating the company’s future cash flows and discounting them to their present value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. It may sound complicated, but actually it is quite simple!
Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you.
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Is Nutanix Fairly Valued?
We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company’s cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren’t available we extrapolate the previous free cash flow (FCF) from the last estimate or…
