Assessing Nutanix (NTNX) Valuation Following Recent Share Price Consolidation and Analyst Forecasts

Nutanix (NTNX) stock has seen some movement lately, and investors may be wondering how its recent performance stacks up, especially after a year when returns slipped slightly. Although there have been fluctuations, the long-term track record has been strong.

See our latest analysis for Nutanix.

After a period of strong momentum, Nutanix’s share price has consolidated in recent weeks as investors took time to process last year’s minor slip in total shareholder return. Still, the impressive total return of 145% over three years indicates there is real potential for long-term growth.

If recent shifts have you rethinking what’s possible, it could be the perfect moment to discover fast growing stocks with high insider ownership.

With shares currently below analyst price targets but coming off a strong multi-year run, it is worth asking whether Nutanix is undervalued or if the market has already factored in the company’s future growth prospects.

Most Popular Narrative: 20% Undervalued

With Nutanix’s last close at $69.62 and the most widely followed narrative pegging fair value at $87.03, there is a sizable gap signaling market optimism about future growth. This view is built on a foundation of industry partnerships and the forecast power of Nutanix’s business model.

Accelerating adoption of hybrid and multi-cloud architectures, highlighted by new integrations with Google Cloud and deepening partnerships with AWS, Azure, Dell, and Pure Storage, positions Nutanix to capture a broader share of enterprise infrastructure modernization budgets. This expands its addressable market and drives sustained revenue growth.

Read the complete narrative.

What future cash flows are behind this valuation leap? Don’t miss the core assumption fueling Nutanix’s premium price: significant growth projections and market expansion that analysts believe could reset expectations. Curious to see what numbers power this bullish view?

Result: Fair Value of $87.03 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent competition from public cloud giants and the risk of eroding customer concentration could quickly challenge Nutanix’s bullish growth assumptions.

Find out about the key risks to this Nutanix narrative.

Another View: Is the Market Overpaying?

While analyst targets and growth assumptions point to Nutanix as undervalued, our take on its price-to-earnings ratio tells a different story. Nutanix trades at 100.1 times earnings, significantly above the industry average of 33.5 and the peer average of 43.6. This figure even doubles its fair ratio of 49.8. That much optimism in the price suggests valuation risk may be hiding in plain sight. Could the shares already reflect all the good news?

Story continues

See what the numbers say about this price — find out in our valuation breakdown.NasdaqGS:NTNX PE Ratio as at Nov 2025

Build Your Own Nutanix Narrative

If you see things differently or want to dig into the data yourself, you can quickly build your own perspective by using Do it your way.

A great starting point for your Nutanix research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

Looking for More Smart Investment Opportunities?

Take control of your portfolio and give yourself the edge by targeting sectors primed for growth, resilience, and innovation using these handpicked ideas.

Tap into game-changing tech momentum by checking out these 25 AI penny stocks as they reach new heights in artificial intelligence and automation. Unlock yields that could enhance your income by exploring these 16 dividend stocks with yields > 3% with strong dividend track records and solid financials. Position yourself at the forefront of the next tech wave by researching these 28 quantum computing stocks leading advances in quantum computing and breakthrough innovation.

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.

Companies discussed in this article include NTNX.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

View comments