Peer comparison based on market capitalization
On August 20, Nutanix’s (NTNX) market capitalization stood at $9.2 billion. The market capitalization of IT players Splunk (SPLK), NetApp (NTAP), and Arista Networks (ANET) came in at $15 billion, $21.2 billion, and $20.1 billion, respectively.
Other valuation metrics
On August 20, Nutanix was trading at a forward EV-to-sales multiple of ~6.2x. In contrast, Splunk, NetApp, and Arista Networks had forward EV-to-sales multiples of ~7.42x, ~2.84x, and ~7.46x, respectively. From the graph above, we can see the comparison of the EV-to-sales multiple for Splunk, NetApp, and Arista Networks.
On August 20, Nutanix was trading at a forward price-to-cash flow multiple of ~88.77x, whereas on the same date, Splunk, NetApp, and Arista Networks had forward price-to-earnings multiples of ~43.54x, ~14.91x, and ~31.85x, respectively.
In the August 20 trading session, Nutanix stock closed at $52.93, close to its lower Bollinger Band level of $48.34. This value indicates that the stock is oversold, and investors could take it as a “buy” signal.
Short interest ratio
On August 20, Nutanix’s short interest as a percentage of its shares outstanding (or short interest ratio) was ~3.8%. Generally, a stock’s short interest ratio that’s greater than 40% implies that investors and traders expect that the share price of that company will decline.
YTD stock return
Year-to-date (or YTD), Nutanix’s stock climbed 51.9%, while in the same time period, Splunk, NetApp, and Arista Networks rose 24.8%, 46.71%, and 14.2%, respectively.