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 49.69 is considered Fairly compared with the five-year average of 53.88. The fair price of Palo Alto Networks Inc (PANW) is between 183.04 to 238.47 according to relative valuation methord.
Relative Value
Fair Zone
183.04-238.47
Current Price：195.68
Fair
49.69
PE
1Y
3Y
5Y
Trailing
Forward
38.08
EV/EBITDA
Palo Alto Networks Inc. (PANW) has a current EV/EBITDA of 38.08. The 5-year average EV/EBITDA is 34.84. The thresholds are as follows: Strongly Undervalued below 24.09, Undervalued between 24.09 and 29.47, Fairly Valued between 40.22 and 29.47, Overvalued between 40.22 and 45.60, and Strongly Overvalued above 45.60. The current Forward EV/EBITDA of 38.08 falls within the Historic Trend Line -Fairly Valued range.
40.61
EV/EBIT
Palo Alto Networks Inc. (PANW) has a current EV/EBIT of 40.61. The 5-year average EV/EBIT is 41.08. The thresholds are as follows: Strongly Undervalued below 29.74, Undervalued between 29.74 and 35.41, Fairly Valued between 46.74 and 35.41, Overvalued between 46.74 and 52.41, and Strongly Overvalued above 52.41. The current Forward EV/EBIT of 40.61 falls within the Historic Trend Line -Fairly Valued range.
12.43
PS
Palo Alto Networks Inc. (PANW) has a current PS of 12.43. The 5-year average PS is 9.73. The thresholds are as follows: Strongly Undervalued below 5.12, Undervalued between 5.12 and 7.42, Fairly Valued between 12.03 and 7.42, Overvalued between 12.03 and 14.33, and Strongly Overvalued above 14.33. The current Forward PS of 12.43 falls within the Overvalued range.
30.42
P/OCF
Palo Alto Networks Inc. (PANW) has a current P/OCF of 30.42. The 5-year average P/OCF is 25.77. The thresholds are as follows: Strongly Undervalued below 15.80, Undervalued between 15.80 and 20.78, Fairly Valued between 30.75 and 20.78, Overvalued between 30.75 and 35.73, and Strongly Overvalued above 35.73. The current Forward P/OCF of 30.42 falls within the Historic Trend Line -Fairly Valued range.
32.20
P/FCF
Palo Alto Networks Inc. (PANW) has a current P/FCF of 32.20. The 5-year average P/FCF is 27.68. The thresholds are as follows: Strongly Undervalued below 17.55, Undervalued between 17.55 and 22.61, Fairly Valued between 32.74 and 22.61, Overvalued between 32.74 and 37.80, and Strongly Overvalued above 37.80. The current Forward P/FCF of 32.20 falls within the Historic Trend Line -Fairly Valued range.
Palo Alto Networks Inc (PANW) has a current Price-to-Book (P/B) ratio of 15.63. Compared to its 3-year average P/B ratio of 34.93 , the current P/B ratio is approximately -55.26% higher. Relative to its 5-year average P/B ratio of 79.88, the current P/B ratio is about -80.44% higher. Palo Alto Networks Inc (PANW) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.24%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.29% , the current FCF yield is about -100.00% lower.
15.63
P/B
Median3y
34.93
Median5y
79.88
2.73
FCF Yield
Median3y
3.24
Median5y
3.29
Competitors Valuation Multiple
The average P/S ratio for PANW's competitors is , providing a benchmark for relative valuation. Palo Alto Networks Inc Corp (PANW) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 15.67%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of PANW increased by 7.54% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 2.14B to 2.47B.
The secondary factor is the P/E Change, contributed 9.55%to the performance.
Overall, the performance of PANW in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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