Is Nutanix (NTNX) Priced Attractive After Recent Share Price Weakness

• If you are wondering whether Nutanix at around US$41.76 is a bargain or a value trap, you are not alone. This article is here to walk you through what the current price might be telling you.
• The stock has had a mixed run, with a 0.3% decline over the last week, an 8.7% decline over the past month, a 17.5% decline year to date, but returns of 50.1% over 3 years and 30.6% over 5 years that may still catch the eye of longer term investors.
• Recent coverage has focused on Nutanix as a key player in software infrastructure, including ongoing commentary about its position in cloud and hybrid IT as enterprises reassess their technology stacks. This context helps frame why the share price has seen shorter term weakness alongside still positive multi year returns, as investors weigh growth expectations against risk and competition.
• Right now Nutanix scores 3 out of 6 on our valuation checks, giving it a value score of 3. Next we will compare what different methods like DCF, multiples and peer comparisons suggest about that number, then finish with a framework that can help you read any valuation in a more complete way.

Find out why Nutanix’s -42.2% return over the last year is lagging behind its peers.

Approach 1: Nutanix Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model takes Nutanix’s expected future cash flows and discounts them back to today to estimate what the entire business might be worth right now.

For Nutanix, the model uses a 2 stage Free Cash…