Palo Alto Networks, Inc.

NasdaqGS:PANW Stock Report

Market Cap: US$111.5b

Palo Alto Networks Valuation

Is PANW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of PANW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PANW ($342.36) is trading below our estimate of fair value ($529.12)

Significantly Below Fair Value: PANW is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PANW?

Other financial metrics that can be useful for relative valuation.

PANW key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue13.7x
Enterprise Value/EBITDA100.8x
PEG Ratio-17.1x

Price to Earnings Ratio vs Peers

How does PANW's PE Ratio compare to its peers?

The above table shows the PE ratio for PANW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average69.7x
NOW ServiceNow
164.8x22.3%US$188.9b
FTNT Fortinet
45.4x12.4%US$59.7b
ORCL Oracle
43.1x16.2%US$473.5b
CHKP Check Point Software Technologies
25.5x5.1%US$21.3b
PANW Palo Alto Networks
43.2x-2.5%US$111.5b

Price-To-Earnings vs Peers: PANW is good value based on its Price-To-Earnings Ratio (43.2x) compared to the peer average (69.7x).

Price to Earnings Ratio vs Industry

How does PANW's PE Ratio compare vs other companies in the US Software Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.9%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.9%
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Price-To-Earnings vs Industry: PANW is expensive based on its Price-To-Earnings Ratio (43.2x) compared to the US Software industry average (38.8x).

Price to Earnings Ratio vs Fair Ratio

What is PANW's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PANW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio43.2x
Fair PE Ratio39.6x

Price-To-Earnings vs Fair Ratio: PANW is expensive based on its Price-To-Earnings Ratio (43.2x) compared to the estimated Fair Price-To-Earnings Ratio (39.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst PANW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$342.36
US$379.10
+10.7%
7.7%US$420.00US$276.00n/a49
Sep ’25US$362.72
US$378.83
+4.4%
6.8%US$416.00US$304.00n/a48
Aug ’25US$315.62
US$346.24
+9.7%
8.2%US$391.70US$275.00n/a48
Jul ’25US$340.90
US$343.26
+0.7%
7.9%US$385.00US$275.00n/a48
Jun ’25US$294.91
US$339.23
+15.0%
8.0%US$385.00US$275.00n/a48
May ’25US$287.34
US$336.07
+17.0%
9.5%US$407.00US$265.00n/a47
Apr ’25US$279.42
US$336.23
+20.3%
9.8%US$407.00US$265.00n/a46
Mar ’25US$302.40
US$335.92
+11.1%
9.9%US$407.00US$265.00n/a45
Feb ’25US$339.97
US$328.76
-3.3%
14.1%US$405.00US$241.00n/a45
Jan ’25US$294.88
US$296.95
+0.7%
13.2%US$400.00US$190.00n/a44
Dec ’24US$296.16
US$279.87
-5.5%
8.7%US$340.00US$190.00n/a43
Nov ’24US$244.86
US$278.59
+13.8%
8.9%US$340.00US$190.00n/a43
Oct ’24US$234.44
US$275.36
+17.5%
8.3%US$340.00US$190.00US$329.2942
Sep ’24US$242.72
US$274.49
+13.1%
8.3%US$340.00US$190.00US$362.7241
Aug ’24US$253.17
US$252.00
-0.5%
11.2%US$307.00US$180.00US$315.6241
Jul ’24US$255.51
US$244.54
-4.3%
9.5%US$302.00US$180.00US$340.9041
Jun ’24US$216.79
US$234.73
+8.3%
8.1%US$275.00US$180.00US$294.9141
May ’24US$183.30
US$221.95
+21.1%
10.1%US$275.00US$140.00US$287.3442
Apr ’24US$199.74
US$220.29
+10.3%
10.1%US$275.00US$140.00US$279.4242
Mar ’24US$186.94
US$218.95
+17.1%
9.5%US$255.00US$140.00US$302.4041
Feb ’24US$159.72
US$204.88
+28.3%
11.8%US$250.00US$140.00US$339.9742
Jan ’24US$139.54
US$214.05
+53.4%
10.1%US$268.00US$140.00US$294.8841
Dec ’23US$178.40
US$215.95
+21.0%
9.6%US$268.00US$140.00US$296.1641
Nov ’23US$170.77
US$219.40
+28.5%
9.2%US$274.00US$165.00US$244.8639
Oct ’23US$163.79
US$218.72
+33.5%
9.5%US$274.00US$165.00US$234.4437

Analyst Forecast: Target price is less than 20% higher than the current share price.

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