Palo Alto Networks Stock Current Valuation
| PANW Stock | USD 293.41 1.99 0.68% |
Valuation analysis of Palo Alto Networks helps investors to measure Palo Alto's intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. Enterprise Value Over EBITDA is likely to climb to 122.48 in 2024. Enterprise Value Multiple is likely to climb to 122.48 in 2024. Fundamental drivers impacting Palo Alto's valuation include:
Price Book 20.6947 | Enterprise Value 93 B | Enterprise Value Ebitda 77.1094 | Price Sales 11.9786 | Forward PE 45.045 |
Fairly Valued
Today
Please note that Palo Alto's price fluctuation is very steady at this time. Calculation of the real value of Palo Alto Networks is based on 3 months time horizon. Increasing Palo Alto's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Palo Alto Networks is useful when determining the fair value of the Palo stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Palo Alto. Since Palo Alto is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Palo Stock. However, Palo Alto's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 293.41 | Real 292.79 | Target 279.77 | Hype 292.99 | Naive 316.29 |
The real value of Palo Stock, also known as its intrinsic value, is the underlying worth of Palo Alto Networks Company, which is reflected in its stock price. It is based on Palo Alto's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Palo Alto's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Palo Alto's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Palo Alto Networks helps investors to forecast how Palo stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Palo Alto more accurately as focusing exclusively on Palo Alto's fundamentals will not take into account other important factors: Palo Alto Networks Company Current Valuation Analysis
Palo Alto's Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Current Palo Alto Current Valuation | 92.97 B |
Most of Palo Alto's fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Palo Alto Networks is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Palo Current Valuation Driver Correlations
Understanding the fundamental principles of building solid financial models for Palo Alto is extremely important. It helps to project a fair market value of Palo Stock properly, considering its historical fundamentals such as Current Valuation. Since Palo Alto's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Palo Alto's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Palo Alto's interrelated accounts and indicators.
Click cells to compare fundamentals
Palo Current Valuation Historical Pattern
Today, most investors in Palo Alto Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Palo Alto's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's current valuation growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Palo Alto current valuation as a starting point in their analysis.
Palo Alto Current Valuation |
| Timeline |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
| Competition |
In accordance with the recently published financial statements, Palo Alto Networks has a Current Valuation of 92.97 B. This is 381.35% higher than that of the Software sector and significantly higher than that of the Information Technology industry. The current valuation for all United States stocks is significantly lower than that of the firm.
Palo Current Valuation Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Palo Alto's direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Palo Alto could also be used in its relative valuation, which is a method of valuing Palo Alto by comparing valuation metrics of similar companies.Palo Alto is currently under evaluation in current valuation category among related companies.
Palo Alto Current Valuation Drivers
We derive many important indicators used in calculating different scores of Palo Alto from analyzing Palo Alto's financial statements. These drivers represent accounts that assess Palo Alto's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Palo Alto's important valuation drivers and their relationship over time.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Market Cap | 21.4B | 24.8B | 38.5B | 50.0B | 45.0B | 47.3B | |
| Enterprise Value | 21.9B | 25.3B | 40.1B | 51.8B | 46.7B | 49.0B |
Palo Alto ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Palo Alto's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Palo Alto's managers, analysts, and investors.Environment Score | Governance Score | Social Score |
Palo Fundamentals
| Return On Equity | 0.9 | ||||
| Return On Asset | 0.0309 | ||||
| Profit Margin | 0.30 % | ||||
| Operating Margin | 0.12 % | ||||
| Current Valuation | 92.97 B | ||||
| Shares Outstanding | 323.1 M | ||||
| Shares Owned By Insiders | 1.09 % | ||||
| Shares Owned By Institutions | 84.47 % | ||||
| Number Of Shares Shorted | 11.54 M | ||||
| Price To Earning | (55.17) X | ||||
| Price To Book | 20.69 X | ||||
| Price To Sales | 11.98 X | ||||
| Revenue | 6.89 B | ||||
| Gross Profit | 3.78 B | ||||
| EBITDA | 593.5 M | ||||
| Net Income | 439.7 M | ||||
| Cash And Equivalents | 3.63 B | ||||
| Cash Per Share | 12.15 X | ||||
| Total Debt | 2.27 B | ||||
| Current Ratio | 0.77 X | ||||
| Book Value Per Share | 13.50 X | ||||
| Cash Flow From Operations | 2.78 B | ||||
| Short Ratio | 2.99 X | ||||
| Earnings Per Share | 6.47 X | ||||
| Price To Earnings To Growth | 1.12 X | ||||
| Target Price | 336.63 | ||||
| Number Of Employees | 14.79 K | ||||
| Beta | 1.2 | ||||
| Market Capitalization | 94.16 B | ||||
| Total Asset | 14.5 B | ||||
| Retained Earnings | (1.23 B) | ||||
| Working Capital | (1.69 B) | ||||
| Current Asset | 1.77 B | ||||
| Current Liabilities | 846.8 M | ||||
| Net Asset | 14.5 B |
About Palo Alto Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Palo Alto Networks's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Palo Alto using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Palo Alto Networks based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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Check out Palo Alto Piotroski F Score and Palo Alto Altman Z Score analysis. You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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Is Palo Alto's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Palo Alto. If investors know Palo will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Palo Alto listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 18.56 | Earnings Share 6.47 | Revenue Per Share 24.27 | Quarterly Revenue Growth 0.193 | Return On Assets 0.0309 |
The market value of Palo Alto Networks is measured differently than its book value, which is the value of Palo that is recorded on the company's balance sheet. Investors also form their own opinion of Palo Alto's value that differs from its market value or its book value, called intrinsic value, which is Palo Alto's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Palo Alto's market value can be influenced by many factors that don't directly affect Palo Alto's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Palo Alto's value and its price as these two are different measures arrived at by different means. Investors typically determine if Palo Alto is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Palo Alto's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.