PANW PE Ratio & Valuation,Is PANW Overvalued — Intellectia
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 theFairzone, suggesting that its currentforward PEratio of48.64is consideredFairlycompared with the five-year average of53.86.The fair price ofPalo Alto Networks Inc(PANW)is between185.19to240.67according to relative valuation methord.
Relative Value
Fair Zone
185.19-240.67
Current Price：191.69
Fair
48.64
PE
1Y
3Y
5Y
Trailing
Forward
37.81
EV/EBITDA
Palo Alto Networks Inc. (PANW) has a current EV/EBITDA of 37.81. The 5-year average EV/EBITDA is 34.88. The thresholds are as follows: Strongly Undervalued below 24.13, Undervalued between 24.13 and 29.51, Fairly Valued between 40.26 and 29.51, Overvalued between 40.26 and 45.64, and Strongly Overvalued above 45.64. The current Forward EV/EBITDA of 37.81 falls within the Historic Trend Line -Fairly Valued range.
40.18
EV/EBIT
Palo Alto Networks Inc. (PANW) has a current EV/EBIT of 40.18. The 5-year average EV/EBIT is 41.09. The thresholds are as follows: Strongly Undervalued below 29.76, Undervalued between 29.76 and 35.42, Fairly Valued between 46.75 and 35.42, Overvalued between 46.75 and 52.41, and Strongly Overvalued above 52.41. The current Forward EV/EBIT of 40.18 falls within the Historic Trend Line -Fairly Valued range.
12.31
PS
Palo Alto Networks Inc. (PANW) has a current PS of 12.31. The 5-year average PS is 9.75. The thresholds are as follows: Strongly Undervalued below 5.15, Undervalued between 5.15 and 7.45, Fairly Valued between 12.06 and 7.45, Overvalued between 12.06 and 14.36, and Strongly Overvalued above 14.36. The current Forward PS of 12.31 falls within the Overvalued range.
30.12
P/OCF
Palo Alto Networks Inc. (PANW) has a current P/OCF of 30.12. The 5-year average P/OCF is 25.81. The thresholds are as follows: Strongly Undervalued below 15.84, Undervalued between 15.84 and 20.82, Fairly Valued between 30.79 and 20.82, Overvalued between 30.79 and 35.78, and Strongly Overvalued above 35.78. The current Forward P/OCF of 30.12 falls within the Historic Trend Line -Fairly Valued range.
31.88
P/FCF
Palo Alto Networks Inc. (PANW) has a current P/FCF of 31.88. The 5-year average P/FCF is 27.72. The thresholds are as follows: Strongly Undervalued below 17.58, Undervalued between 17.58 and 22.65, Fairly Valued between 32.78 and 22.65, Overvalued between 32.78 and 37.85, and Strongly Overvalued above 37.85. The current Forward P/FCF of 31.88 falls within the Historic Trend Line -Fairly Valued range.
Palo Alto Networks Inc (PANW) has a current Price-to-Book (P/B) ratio of 15.31. Compared to its 3-year average P/B ratio of 34.03 , the current P/B ratio is approximately -55.02% higher. Relative to its 5-year average P/B ratio of 79.80, the current P/B ratio is about -80.82% higher. Palo Alto Networks Inc (PANW) has a Forward Free Cash Flow (FCF) yield of approximately 2.76%. Compared to its 3-year average FCF yield of 3.21%, the current FCF yield is approximately -13.92% lower. Relative to its 5-year average FCF yield of 3.28% , the current FCF yield is about -15.76% lower.
15.31
P/B
Median3y
34.03
Median5y
79.80
2.76
FCF Yield
Median3y
3.21
Median5y
3.28
Competitors Valuation Multiple
The average P/S ratio for PANW's competitors is 12.17, providing a benchmark for relative valuation. Palo Alto Networks Inc Corp (PANW) exhibits a P/S ratio of 12.31, which is 1.18% above the industry average. Given its robust revenue growth of 15.67%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of PANW increased by 5.35% 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 7.36%to the performance.
Overall, the performance of PANW in the past 1 year is driven by Revenue Growth. Which is more sustainable.
Is Palo Alto Networks Inc (PANW) currently overvalued or undervalued?
Palo Alto Networks Inc(PANW)is now in theFairzone, suggesting that its currentforward PEratio of 48.64is consideredFairlycompared with the five-year average of53.86.The fair price of Palo Alto Networks Inc(PANW)is between185.19to240.67according to relative valuation methord.
What is Palo Alto Networks Inc (PANW) fair value?
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. The fair price of Palo Alto Networks Inc (PANW) is between 185.19to240.67 according to relative valuation methord.
How does PANW's valuation metrics compare to the industry average?
The average P/S ratio for PANW's competitors is 12.17, providing a benchmark for relative valuation. Palo Alto Networks Inc Corp (PANW) exhibits a P/S ratio of 12.31, which is 1.18% above the industry average. Given its robust revenue growth of 15.67%, this premium appears unsustainable.
What is the current P/B ratio for Palo Alto Networks Inc (PANW) as of Dec 15 2025?
As of Dec 15 2025, Palo Alto Networks Inc (PANW) has a P/B ratio of 15.31. This indicates that the market values PANW at 15.31 times its book value.
What is the current FCF Yield for Palo Alto Networks Inc (PANW) as of Dec 15 2025?
As of Dec 15 2025, Palo Alto Networks Inc (PANW) has a FCF Yield of 2.76%. This means that for every dollar of Palo Alto Networks Inc’s market capitalization, the company generates 2.76 cents in free cash flow.
What is the current Forward P/E ratio for Palo Alto Networks Inc (PANW) as of Dec 15 2025?
As of Dec 15 2025, Palo Alto Networks Inc (PANW) has a Forward P/E ratio of 48.64. This means the market is willing to pay $48.64 for every dollar of Palo Alto Networks Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Palo Alto Networks Inc (PANW) as of Dec 15 2025?
As of Dec 15 2025, Palo Alto Networks Inc (PANW) has a Forward P/S ratio of 12.31. This means the market is valuing PANW at $12.31 for every dollar of expected revenue over the next 12 months.
