PANW Valuation

Palo Alto Networks Inc

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212.285

+0.915(0.433%)1D

PANW Relative Valuation

PANW's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, PANW is overvalued; if below, it's undervalued.

Historical Valuation

Palo Alto Networks Inc (PANW) is now in the Fair zone, suggesting that its current forward PE ratio of 55.56 is considered Fairly compared with the five-year average of 53.86. The fair price of Palo Alto Networks Inc (PANW) is between 179.52 to 233.26 according to relative valuation methord.

Relative Value

Fair Zone

179.52-233.26

Current Price：211.37

Fair

55.56

Trailing

Forward

43.11

EV/EBITDA

Palo Alto Networks Inc. (PANW) has a current EV/EBITDA of 43.11. The 5-year average EV/EBITDA is 34.58. The thresholds are as follows: Strongly Undervalued below 23.83, Undervalued between 23.83 and 29.21, Fairly Valued between 39.96 and 29.21, Overvalued between 39.96 and 45.34, and Strongly Overvalued above 45.34. The current Forward EV/EBITDA of 43.11 falls within the Overvalued range.

45.97

EV/EBIT

Palo Alto Networks Inc. (PANW) has a current EV/EBIT of 45.97. The 5-year average EV/EBIT is 40.94. The thresholds are as follows: Strongly Undervalued below 29.47, Undervalued between 29.47 and 35.21, Fairly Valued between 46.67 and 35.21, Overvalued between 46.67 and 52.41, and Strongly Overvalued above 52.41. The current Forward EV/EBIT of 45.97 falls within the Historic Trend Line -Fairly Valued range.

211.37

Palo Alto Networks Inc. (PANW) has a current PS of 211.37. The 5-year average PS is 10.90. The thresholds are as follows: Strongly Undervalued below -22.69, Undervalued between -22.69 and -5.89, Fairly Valued between 27.70 and -5.89, Overvalued between 27.70 and 44.50, and Strongly Overvalued above 44.50. The current Forward PS of 211.37 falls within the Strongly Overvalued range.

34.23

P/OCF

Palo Alto Networks Inc. (PANW) has a current P/OCF of 34.23. The 5-year average P/OCF is 25.51. The thresholds are as follows: Strongly Undervalued below 15.64, Undervalued between 15.64 and 20.58, Fairly Valued between 30.45 and 20.58, Overvalued between 30.45 and 35.38, and Strongly Overvalued above 35.38. The current Forward P/OCF of 34.23 falls within the Overvalued range.

35.92

P/FCF

Palo Alto Networks Inc. (PANW) has a current P/FCF of 35.92. The 5-year average P/FCF is 27.42. The thresholds are as follows: Strongly Undervalued below 17.37, Undervalued between 17.37 and 22.40, Fairly Valued between 32.45 and 22.40, Overvalued between 32.45 and 37.47, and Strongly Overvalued above 37.47. The current Forward P/FCF of 35.92 falls within the Overvalued range.

Palo Alto Networks Inc (PANW) has a current Price-to-Book (P/B) ratio of 18.04. Compared to its 3-year average P/B ratio of 36.97 , the current P/B ratio is approximately -51.20% higher. Relative to its 5-year average P/B ratio of 80.23, the current P/B ratio is about -77.51% higher. Palo Alto Networks Inc (PANW) has a Forward Free Cash Flow (FCF) yield of approximately 0.02%. Compared to its 3-year average FCF yield of 3.28%, the current FCF yield is approximately -99.25% lower. Relative to its 5-year average FCF yield of 3.31% , the current FCF yield is about -99.26% lower.

18.04

P/B

Median3y

36.97

Median5y

80.23

0.02

FCF Yield

Median3y

3.28

Median5y

3.31

Competitors Valuation Multiple

The average P/S ratio for PANW's competitors is 474.12, providing a benchmark for relative valuation. Palo Alto Networks Inc Corp (PANW) exhibits a P/S ratio of 211.37, which is -55.42% above the industry average. Given its robust revenue growth of 15.84%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

PANW.O

Palo Alto Networks Inc

CrowdStrike Holdings Inc

Automatic Data Processing Inc

254.16

7.09%

102.79B

Performance Decomposition

Market capitalization of PANW increased by 9.48% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 100.23 to 132.68.

The secondary factor is the Revenue Growth, contributed 15.84%to the performance.

Overall, the performance of PANW in the past 1 year is driven by P/E Change. Which is more unsustainable.

15.84%

2.19B → 2.54B

Revenue Growth

-38.74%

16.34 → 10.01

Margin Expansion

32.38%

100.23 → 132.68

P/E Change

9.48%