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NetScout Systems (NAS:NTCT) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
NetScout Systems Forward PE Ratio Related Terms
NetScout Systems Forward PE Ratio Historical Data
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The historical data trend for NetScout Systems's Forward PE Ratio 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.
NetScout Systems Forward PE Ratio Chart
NetScout Systems Annual Data
Trend
2016-03
2017-03
2018-03
2019-03
2020-03
2021-03
2022-03
2023-03
2024-03
2025-03
2026-03
Forward PE Ratio
10.55
17.54
15.92
17.89
12.92
16.69
16.86
13.97
10.02
9.34
12.72
NetScout Systems Quarterly Data
2015-12
2016-03
2016-06
2016-09
2016-12
2017-03
2017-06
2017-09
2017-12
2018-03
2018-06
2018-09
2018-12
2019-03
2019-06
2020-03
2020-12
2021-03
2021-06
2021-09
2021-12
2022-03
2022-06
2022-09
2022-12
2023-03
2023-06
2023-09
2023-12
2024-03
2024-06
2024-09
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
2026-06
Forward PE Ratio
14.71
10.55
12.74
16.72
14.93
17.54
17.83
16.58
13.39
15.92
22.17
18.28
15.02
17.89
17.64
12.92
15.67
16.69
16.72
15.72
17.24
16.86
16.23
14.71
14.79
13.97
13.46
12.14
10.55
10.02
8.55
10.91
9.71
9.34
10.76
11.14
11.12
12.72
15.31
NTCT vs EEFT, TDC, STNE: Forward PE Ratio Comparison
For the Software - Infrastructure subindustry, NetScout Systems's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio 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 Forward PE Ratio vs Software Industry
For the Software industry and Technology sector, NetScout Systems's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where NetScout Systems's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
NetScout Systems (NTCT) has a Forward PE Ratio of 14.08 as of Aug. 23, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on NetScout Systems and its competitors. According to the industry distribution chart, NetScout Systems ranks #381 out of 1176 companies in the Software industry, placing it in the top 32.4%.
Is NetScout Systems' Forward PE Ratio too high?
NetScout Systems' current Forward PE Ratio is 14.08. The Software industry median Forward PE Ratio is 19.42. NetScout Systems' value of 14.08 is 27.5% below this industry median. Based on the distribution chart, NetScout Systems ranks #381 out of 1176 companies in the Software industry, which is above 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' Forward PE Ratio compare to EEFT and TDC?
According to the Software industry distribution chart, NetScout Systems ranks #381 out of 1176 companies for Forward PE Ratio. This puts NetScout Systems in the upper half of its industry. The industry median Forward PE Ratio is 19.42. NetScout Systems' value of 14.08 is 27.5% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Software company?
The median Forward PE Ratio among Software companies is 19.42, based on 1,176 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NetScout Systems's current Forward PE Ratio of 14.08 is 27.5% below 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on NetScout Systems and its competitors. For the Software industry, the median Forward PE Ratio is 19.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NetScout Systems's current Forward PE Ratio is 14.08. 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 Forward PE Ratio is 14.08 and 27.5% below the Software industry median of 19.42. 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 Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For NetScout Systems (NTCT), the current Forward PE Ratio is 14.08 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:
Forward PE Ratio: 14.08
GF Value™: $23.87 vs. price of $38.47 (61.2% above fair value)
Industry Position: 27.5% below the Software median (#381 of 1176)
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
Get the complete analysis for NTCT
Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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