Palo Alto Networks Stock Market Value
| PANW Stock | USD 335.75 2.98 0.88% |
| Symbol | Palo |
Palo Alto Networks Price To Book Ratio
Is Systems Software space 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 0.591 | Earnings Share 7.29 | Revenue Per Share 25.149 | Quarterly Revenue Growth 0.121 | Return On Assets 0.0322 |
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.
Palo Alto 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Palo Alto's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Palo Alto.
| 08/31/2024 |
| 09/30/2024 |
If you would invest 0.00 in Palo Alto on August 31, 2024 and sell it all today you would earn a total of 0.00 from holding Palo Alto Networks or generate 0.0% return on investment in Palo Alto over 30 days. Palo Alto is related to or competes with Zscaler, Cloudflare, Okta, Adobe Systems, Uipath, Nutanix, and Crowdstrike Holdings. Palo Alto Networks, Inc. provides cybersecurity solutions worldwide More
Palo Alto Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Palo Alto's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Palo Alto Networks upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.96 | |||
| Information Ratio | (0.02) | |||
| Maximum Drawdown | 10.03 | |||
| Value At Risk | (2.85) | |||
| Potential Upside | 4.33 |
Palo Alto Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Palo Alto's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Palo Alto's standard deviation. In reality, there are many statistical measures that can use Palo Alto historical prices to predict the future Palo Alto's volatility.| Risk Adjusted Performance | 0.0327 | |||
| Jensen Alpha | (0.08) | |||
| Total Risk Alpha | (0.24) | |||
| Sortino Ratio | (0.03) | |||
| Treynor Ratio | 0.0473 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Palo Alto's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Palo Alto Networks Backtested Returns
Palo Alto Networks maintains Sharpe Ratio (i.e., Efficiency) of -3.0E-4, which implies the firm had a -3.0E-4% return per unit of risk over the last 3 months. Palo Alto Networks exposes twenty-nine different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check Palo Alto's Risk Adjusted Performance of 0.0327, coefficient of variation of 3031.35, and Semi Deviation of 1.91 to confirm the risk estimate we provide. The company holds a Beta of 1.27, which implies a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Palo Alto will likely underperform. At this point, Palo Alto Networks has a negative expected return of -7.0E-4%. Please make sure to check Palo Alto's value at risk, as well as the relationship between the kurtosis and market facilitation index , to decide if Palo Alto Networks performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.57 |
Modest predictability
Palo Alto Networks has modest predictability. Overlapping area represents the amount of predictability between Palo Alto time series from 31st of August 2024 to 15th of September 2024 and 15th of September 2024 to 30th of September 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Palo Alto Networks price movement. The serial correlation of 0.57 indicates that roughly 57.0% of current Palo Alto price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.57 | |
| Spearman Rank Test | 0.19 | |
| Residual Average | 0.0 | |
| Price Variance | 22.77 |
Palo Alto Networks lagged returns against current returns
Autocorrelation, which is Palo Alto stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Palo Alto's stock expected returns. We can calculate the autocorrelation of Palo Alto returns to help us make a trade decision. For example, suppose you find that Palo Alto has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Palo Alto regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Palo Alto stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Palo Alto stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Palo Alto stock over time.
Current vs Lagged Prices |
| Timeline |
Palo Alto Lagged Returns
When evaluating Palo Alto's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Palo Alto stock have on its future price. Palo Alto autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Palo Alto autocorrelation shows the relationship between Palo Alto stock current value and its past values and can show if there is a momentum factor associated with investing in Palo Alto Networks.
Regressed Prices |
| Timeline |
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Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.Additional Tools for Palo Stock Analysis
When running Palo Alto's price analysis, check to measure Palo Alto's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Palo Alto is operating at the current time. Most of Palo Alto's value examination focuses on studying past and present price action to predict the probability of Palo Alto's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Palo Alto's price. Additionally, you may evaluate how the addition of Palo Alto to your portfolios can decrease your overall portfolio volatility.