NetAppFRA:NTA -0.75%91 Interest Coverage is 18.96 as of Apr. 2026, which is 14% above its 10-year median of 16.68. GuruFocus rates FRA:NTA with a GF Score™ of 91/100 and a GF Value™ of €103.59 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 1,706 Software companies, NetApp ranks worse than 58.32% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. NetApp's
Operating Income
for the
three
months ended in Apr. 2026 was €454 Mil. NetApp's Interest Expense for the
three
months ended in Apr. 2026 was €-24 Mil.
NetApp's interest coverage for the quarter that ended in Apr. 2026 was 18.96.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for NetApp's Interest Coverage or its related term are showing as below:
FRA:NTA'
s Interest Coverage Range Over the Past 10 Years
Min: 12.61 Med: 16.68 Max: 22.27
Current: 15.55
FRA:NTA's Interest Coverage is ranked worse than 58.32% of 1706
companies
in the Software industry
Industry Median: 24.75
vs FRA:NTA: 15.55
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
NetApp Interest Coverage Related Terms
NetApp Interest Coverage Historical Data
* Premium members only.
The historical data trend for NetApp's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:NTA vs TWLO, MDB, VRSN: Interest Coverage Comparison
For the Software - Infrastructure subindustry, NetApp's Interest Coverage, along with its competitors' market caps and Interest Coverage 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.
NetApp Interest Coverage vs Software Industry
For the Software industry and Technology sector, NetApp's Interest Coverage distribution charts can be found below:
* The bar in red indicates where NetApp's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
NetApp (FRA:NTA) has a Interest Coverage of 18.96 as of Apr. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on NetApp and its competitors. This is 14% above median its historical median of 16.68. Over the past decade, NetApp's Interest Coverage has ranged from 12.61 to 22.27. According to the industry distribution chart, NetApp ranks #995 out of 1706 companies in the Software industry, placing it in the top 58.3%.
Is NetApp's Interest Coverage too high?
NetApp's current Interest Coverage of 18.96 is 14% above median its 10-year median of 16.68. Over the past 10 years, this metric has ranged from a low of 12.61 to a high of 22.27. The Software industry median Interest Coverage is 24.75. NetApp's value of 18.96 is 23.4% below this industry median. Based on the distribution chart, NetApp ranks #995 out of 1706 companies in the Software industry, which is below the industry midpoint. Overall, NetApp has a GF Score™ of 91/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does NetApp's Interest Coverage compare to TWLO and MDB?
According to the Software industry distribution chart, NetApp ranks #995 out of 1706 companies for Interest Coverage. This places NetApp in the lower half of its industry. The industry median Interest Coverage is 24.75. NetApp's value of 18.96 is 23.4% below this benchmark. Historically, NetApp's own Interest Coverage has ranged from 12.61 to 22.27 over the past decade. While the company's 10-year median is 16.68 vs. the industry median of 24.75, NetApp has consistently been below 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 Interest Coverage for a Software company?
The median Interest Coverage among Software companies is 24.75, based on 1,706 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NetApp's current Interest Coverage of 18.96 is 23.4% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on NetApp and its competitors. For the Software industry, the median Interest Coverage is 24.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NetApp's current Interest Coverage is 18.96, which is 14% above median its own 10-year median of 16.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NetApp stock overvalued right now?
Based on GuruFocus' analysis, NetApp (FRA:NTA) is currently considered Modestly Overvalued. The stock's GF Value™ is €103.59, compared to a current price of €134.44 — trading 29.8% above its estimated fair value. The current Interest Coverage is 18.96, which is 14% above median its 10-year median of 16.68 and 23.4% below the Software industry median of 24.75. NetApp's overall GF Score™ is 91/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For NetApp (FRA:NTA), the current Interest Coverage is 18.96 as of Apr. 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 NetApp (FRA:NTA) Overvalued in 2026?
Based on GuruFocus' analysis, NetApp stock appears to be overvalued.
The current stock price of €134.44 is trading 29.8% above its estimated GF Value™ of €103.59.
GuruFocus considers NetApp to be Modestly Overvalued.
Key valuation signals for FRA:NTA:
Interest Coverage: 18.96 (14% above median its 10-year median of 16.68)
GF Value™: €103.59 vs. price of €134.44 (29.8% above fair value)
Industry Position: 23.4% below the Software median (#995 of 1706)
No single metric tells the full story. See the FRA:NTA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NetApp Inc is storage hardware provider into a software-driven, cloud-centric data infrastructure company. Its flagship ONTAP data management software, together with a comprehensive portfolio of all-flash, hybrid-flash, and cloud-native solutions, forms the backbone of digital transformation for thousands of enterprises world'wide. Its operations are organized into two segments Hybrid Cloud and Public Cloud. It generates majority of revenue from Hybrid Cloud offers a unified data storage portfolio of storage management and infrastructure solutions that helps customers modernize their data centers. Hybrid Cloud includes software, hardware, and related support, along with professional and other services. It generates majority of revenue from United States followed by International market.
91GF Score
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