stocks logo

PANW Valuation

Palo Alto Networks Inc
$
204.500
+1.23(0.605%)1D
  • Overview
  • Forecast
  • Valuation
  • Earnings

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 57.43 is considered Fairly compared with the five-year average of 53.26. The fair price of Palo Alto Networks Inc (PANW) is between 163.52 to 215.75 according to relative valuation methord.
Relative Value
Fair Zone
163.52-215.75
Current Price:203.27
Fair
57.78
PE
1Y
3Y
5Y
Trailing
Forward
39.72
EV/EBITDA
Palo Alto Networks Inc. (PANW) has a current EV/EBITDA of 39.72. The 5-year average EV/EBITDA is 33.80. The thresholds are as follows: Strongly Undervalued below 21.98, Undervalued between 21.98 and 27.89, Fairly Valued between 39.71 and 27.89, Overvalued between 39.71 and 45.62, and Strongly Overvalued above 45.62. The current Forward EV/EBITDA of 39.72 falls within the Overvalued range.
45.78
EV/EBIT
Palo Alto Networks Inc. (PANW) has a current EV/EBIT of 45.78. The 5-year average EV/EBIT is 40.34. The thresholds are as follows: Strongly Undervalued below 28.04, Undervalued between 28.04 and 34.19, Fairly Valued between 46.49 and 34.19, Overvalued between 46.49 and 52.64, and Strongly Overvalued above 52.64. The current Forward EV/EBIT of 45.78 falls within the Historic Trend Line -Fairly Valued range.
13.40
PS
Palo Alto Networks Inc. (PANW) has a current PS of 13.40. The 5-year average PS is 9.23. The thresholds are as follows: Strongly Undervalued below 4.53, Undervalued between 4.53 and 6.88, Fairly Valued between 11.58 and 6.88, Overvalued between 11.58 and 13.93, and Strongly Overvalued above 13.93. The current Forward PS of 13.40 falls within the Overvalued range.
32.82
P/OCF
Palo Alto Networks Inc. (PANW) has a current P/OCF of 32.82. The 5-year average P/OCF is 24.81. The thresholds are as follows: Strongly Undervalued below 14.60, Undervalued between 14.60 and 19.70, Fairly Valued between 29.91 and 19.70, Overvalued between 29.91 and 35.02, and Strongly Overvalued above 35.02. The current Forward P/OCF of 32.82 falls within the Overvalued range.
34.92
P/FCF
Palo Alto Networks Inc. (PANW) has a current P/FCF of 34.92. The 5-year average P/FCF is 26.73. The thresholds are as follows: Strongly Undervalued below 16.30, Undervalued between 16.30 and 21.52, Fairly Valued between 31.94 and 21.52, Overvalued between 31.94 and 37.16, and Strongly Overvalued above 37.16. The current Forward P/FCF of 34.92 falls within the Overvalued range.
Palo Alto Networks Inc (PANW) has a current Price-to-Book (P/B) ratio of 18.72. Compared to its 3-year average P/B ratio of 57.28 , the current P/B ratio is approximately -67.32% higher. Relative to its 5-year average P/B ratio of 80.56, the current P/B ratio is about -76.76% higher. Palo Alto Networks Inc (PANW) has a Forward Free Cash Flow (FCF) yield of approximately 2.21%. Compared to its 3-year average FCF yield of 3.38%, the current FCF yield is approximately -34.57% lower. Relative to its 5-year average FCF yield of 3.36% , the current FCF yield is about -34.14% lower.
18.83
P/B
Median3y
57.28
Median5y
80.56
2.21
FCF Yield
Median3y
3.38
Median5y
3.36

Competitors Valuation Multiple

The average P/S ratio for PANW's competitors is 13.88, providing a benchmark for relative valuation. Palo Alto Networks Inc Corp (PANW) exhibits a P/S ratio of 13.40, which is -3.39% above the industry average. Given its robust revenue growth of 15.33%, this premium appears unsustainable.

Performance Decomposition

1Y
3Y
5Y
Market capitalization of PANW increased by 25.95% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 91.02 to 117.53.
The secondary factor is the Revenue Growth, contributed 15.33%to the performance.
Overall, the performance of PANW in the past 1 year is driven by P/E Change. Which is more unsustainable.
15.33%
1.98B → 2.29B
Revenue Growth
+
-18.51%
14.05 → 11.45
Margin Expansion
+
29.13%
91.02 → 117.53
P/E Change
=
25.95%
162.37 → 204.50
Mkt Cap Growth

FAQ

arrow icon

Is Palo Alto Networks Inc (PANW) currently overvalued or undervalued?

Palo Alto Networks Inc (PANW) is now in the Fair zone, suggesting that its current forward PE ratio of 57.43 is considered Fairly compared with the five-year average of 53.26. The fair price of Palo Alto Networks Inc (PANW) is between 163.52 to 215.75 according to relative valuation methord.
arrow icon

What is Palo Alto Networks Inc (PANW) fair value?

arrow icon

How does PANW's valuation metrics compare to the industry average?

arrow icon

What is the current P/B ratio for Palo Alto Networks Inc (PANW) as of Jul 29 2025?

arrow icon

What is the current FCF Yield for Palo Alto Networks Inc (PANW) as of Jul 29 2025?

arrow icon

What is the current Forward P/E ratio for Palo Alto Networks Inc (PANW) as of Jul 29 2025?

arrow icon

What is the current Forward P/S ratio for Palo Alto Networks Inc (PANW) as of Jul 29 2025?