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NetScout SystemsNTCT +1.18%65 EV-to-EBIT is 15.54 as of Aug. 23, 2026, which is 32% below its 10-year median of 22.72. GuruFocus rates NTCT with a GF Score™ of 65/100 and a GF Value™ of $23.87 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,782 Software companies, NetScout Systems ranks worse than 54.6% on this metric.
NetScout Systems (NAS:NTCT) EV-to-EBIT Explanation
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
NetScout Systems's Enterprise Value for the quarter that ended in Jun. 2026 was $2,576.7 Mil.
NetScout Systems's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $142.0 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NetScout Systems EV-to-EBIT Related Terms
NetScout Systems EV-to-EBIT Historical Data
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The historical data trend for NetScout Systems's EV-to-EBIT can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Infrastructure subindustry, NetScout Systems's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
NetScout Systems EV-to-EBIT vs Software Industry
For the Software industry and Technology sector, NetScout Systems's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where NetScout Systems's EV-to-EBIT falls into.
NetScout Systems's current Enterprise Value is $2,207.6 Mil.
NetScout Systems's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $142.0 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NetScout Systems (NTCT) has a EV-to-EBIT of 15.54 as of Aug. 23, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on NetScout Systems and its competitors. This is 32% below median its historical median of 22.72. According to the industry distribution chart, NetScout Systems ranks #973 out of 1782 companies in the Software industry, placing it in the top 54.6%.
Is NetScout Systems' EV-to-EBIT too high?
NetScout Systems' current EV-to-EBIT of 15.54 is 32% below median its 10-year median of 22.72. The Software industry median EV-to-EBIT is 13.60. NetScout Systems' value of 15.54 is 14.3% above this industry median. Based on the distribution chart, NetScout Systems ranks #973 out of 1782 companies in the Software industry, which is below the industry midpoint. Overall, NetScout Systems has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does NetScout Systems' EV-to-EBIT compare to EEFT and TDC?
According to the Software industry distribution chart, NetScout Systems ranks #973 out of 1782 companies for EV-to-EBIT. This places NetScout Systems in the lower half of its industry. The industry median EV-to-EBIT is 13.60. NetScout Systems' value of 15.54 is 14.3% above this benchmark. While the company's 10-year median is 22.72 vs. the industry median of 13.60, NetScout Systems has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for a Software company?
The median EV-to-EBIT among Software companies is 13.60, based on 1,782 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NetScout Systems's current EV-to-EBIT of 15.54 is 14.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on NetScout Systems and its competitors. For the Software industry, the median EV-to-EBIT is 13.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NetScout Systems's current EV-to-EBIT is 15.54, which is 32% below median its own 10-year median of 22.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NetScout Systems stock overvalued right now?
Based on GuruFocus' analysis, NetScout Systems (NTCT) is currently considered Significantly Overvalued. The stock's GF Value™ is $23.87, compared to a current price of $38.47 — trading 61.2% above its estimated fair value. The current EV-to-EBIT is 15.54, which is 32% below median its 10-year median of 22.72 and 14.3% above the Software industry median of 13.60. NetScout Systems' overall GF Score™ is 65/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For NetScout Systems (NTCT), the current EV-to-EBIT is 15.54 as of Aug. 23, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is NetScout Systems (NTCT) Overvalued in 2026?
Based on GuruFocus' analysis, NetScout Systems stock appears to be overvalued.
The current stock price of $38.47 is trading 61.2% above its estimated GF Value™ of $23.87.
GuruFocus considers NetScout Systems to be Significantly Overvalued.
Key valuation signals for NTCT:
EV-to-EBIT: 15.54 (32% below median its 10-year median of 22.72)
GF Value™: $23.87 vs. price of $38.47 (61.2% above fair value)
Industry Position: 14.3% above the Software median (#973 of 1782)
No single metric tells the full story. See the NTCT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NetScout Systems Inc is engaged in providing enterprise network observability, carrier service assurance, cybersecurity, and Distributed Denial-of-Service (DDoS), protection solutions. It bases its solutions on proprietary adaptive service intelligence technology, which helps customers monitor and identify performance issues and provides insight into network-based security threats. These solutions also deliver real-time and historical information, which provides insight to restore service and understand the quality of user experience. The company derives revenue from the sale of network management tools and security solutions. Its geographical regions include USA, which derives maximum revenue, Europe, Asia, and Rest of the World.
65GF Score
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