Palo Alto Networks, Inc.

XTRA:5AP Stock Report

Market Cap: €116.9b

Palo Alto Networks Valuation

Is 5AP 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 5AP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 5AP (€176.72) is trading below our estimate of fair value (€237.31)

Significantly Below Fair Value: 5AP is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 5AP?

Key metric: As 5AP is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 5AP. This is calculated by dividing 5AP's market cap by their current earnings.
What is 5AP's PE Ratio?
PE Ratio44.7x
EarningsUS$2.73b
Market CapUS$122.17b

Price to Earnings Ratio vs Peers

How does 5AP's PE Ratio compare to its peers?

The above table shows the PE ratio for 5AP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average51x
SAP SAP
100.1x41.4%€274.9b
IXX init innovation in traffic systems
19.8x27.8%€361.5m
NEM Nemetschek
63.3x18.5%€10.8b
IVU IVU Traffic Technologies
21xn/a€256.6m
5AP Palo Alto Networks
44.7x-3.7%€122.2b

Price-To-Earnings vs Peers: 5AP is good value based on its Price-To-Earnings Ratio (44.7x) compared to the peer average (51x).

Price to Earnings Ratio vs Industry

How does 5AP's PE Ratio compare vs other companies in the European Software Industry?

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
5AP 44.7xIndustry Avg. 26.4xNo. of Companies19PE020406080100+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 5AP is expensive based on its Price-To-Earnings Ratio (44.7x) compared to the European Software industry average (26.4x).

Price to Earnings Ratio vs Fair Ratio

What is 5AP'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.

5AP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio44.7x
Fair PE Ratio35.2x

Price-To-Earnings vs Fair Ratio: 5AP is expensive based on its Price-To-Earnings Ratio (44.7x) compared to the estimated Fair Price-To-Earnings Ratio (35.2x).

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 5AP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€176.72
€196.46
+11.2%
12.2%€230.86€108.21n/a49
Dec ’25€183.60
€194.00
+5.7%
10.0%€219.43€130.41n/a49
Nov ’25€167.83
€176.72
+5.3%
8.7%€206.87€126.88n/a50
Oct ’25€149.70
€169.91
+13.5%
7.8%€188.14€123.63n/a48
Sep ’25€162.15
€171.02
+5.5%
6.8%€187.80€137.24n/a48
Aug ’25€148.10
€160.14
+8.1%
8.2%€181.16€127.19n/a48
Jul ’25€158.55
€160.22
+1.1%
7.9%€179.70€128.36n/a48
Jun ’25€133.00
€157.05
+18.1%
8.0%€178.24€127.31n/a48
May ’25€137.33
€157.87
+15.0%
9.5%€191.19€124.48n/a47
Apr ’25€131.40
€154.73
+17.8%
9.8%€187.30€121.95n/a46
Mar ’25€138.70
€155.40
+12.0%
9.9%€188.28€122.59n/a45
Feb ’25€155.48
€152.13
-2.2%
14.1%€187.41€111.52n/a45
Jan ’25€133.83
€134.49
+0.5%
13.2%€181.16€86.05n/a44
Dec ’24€135.53
€128.29
-5.3%
8.7%€155.86€87.10€183.6043
Nov ’24€114.73
€131.80
+14.9%
8.9%€160.85€89.89€167.8343
Oct ’24€112.23
€130.36
+16.2%
8.3%€160.96€89.95€149.7042
Sep ’24€112.60
€125.67
+11.6%
8.3%€155.67€86.99€162.1541
Aug ’24€114.55
€114.00
-0.5%
11.2%€138.89€81.43€148.1041
Jul ’24€116.78
€112.50
-3.7%
9.5%€138.94€82.81€158.5541
Jun ’24€100.33
€109.82
+9.5%
8.1%€128.66€84.21€133.0041
May ’24€82.49
€101.15
+22.6%
10.1%€125.33€63.81€137.3342
Apr ’24€91.34
€103.28
+13.1%
10.1%€128.93€65.64€131.4042
Mar ’24€87.42
€102.68
+17.5%
9.5%€119.58€65.65€138.7041
Feb ’24€71.07
€93.25
+31.2%
11.8%€113.79€63.72€155.4842
Jan ’24€65.09
€100.83
+54.9%
10.1%€126.24€65.95€133.8341
Dec ’23€83.98
€104.60
+24.5%
9.6%€129.81€67.81€135.5341

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/30 10:08
End of Day Share Price 2024/12/30 00:00
Earnings2024/10/31
Annual Earnings2024/07/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Palo Alto Networks, Inc. is covered by 84 analysts. 52 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Ellie BagshawArete Research Services LLP
Joseph BonnerArgus Research Company
Shrenik KothariBaird