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Publication Date: 2025-08-28 07:00:00
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Nutanix’s estimated fair value is US$60.95 based on 2 Stage Free Cash Flow to Equity
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Nutanix’s US$69.60 share price indicates it is trading at similar levels as its fair value estimate
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Analyst price target for NTNX is US$90.64, which is 49% above our fair value estimate
Today we’ll do a simple run through of a valuation method used to estimate the attractiveness of Nutanix, Inc. (NASDAQ:NTNX) as an investment opportunity by taking the expected future cash flows and discounting them to today’s value. This will be done using the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
We generally believe that a company’s value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model.
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. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but…
