Palo Alto Networks, Inc.

DB:5AP Stock Report

Market Cap: €185.7b

Palo Alto Networks Valuation

Is 5AP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow 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.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: 5AP (€237.8) is trading below our estimate of future cash flow value (€255.04)

Significantly Below Future Cash Flow Value: 5AP is trading below future cash flow value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for 5AP. This is calculated by dividing 5AP's market cap by their current revenue.
What is 5AP's PS Ratio?
PS Ratio20.2x
SalesUS$10.61b
Market CapUS$214.52b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for 5AP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average10.6x
SAP SAP
4.4x10.13%€163.7b
IXX init innovation in traffic systems
1.4x11.35%€495.6m
IVU IVU Traffic Technologies
2.2x8.17%€345.4m
CRWD CrowdStrike Holdings
34.6x16.79%US$164.9b
5AP Palo Alto Networks
21.5x15.07%€214.5b

Price-To-Sales vs Peers: 5AP is expensive based on its Price-To-Sales Ratio (21.5x) compared to the peer average (10.6x).

Historical Price to Sales Ratio

Historical Price to Sales Ratio compares a stock's price to its sales over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Sales Ratio vs Industry

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

5 CompaniesPrice / SalesEstimated GrowthMarket Cap
CSH CENIT
0.3x3.58%US$80.42m
CLIQ Cliq Digital
0.2xn/aUS$24.62m
8DQ GetSwift Technologies
0.07xn/aUS$2.53m
9R6 Scape Technologies
0.3xn/aUS$256.04k
5AP 20.2xIndustry Avg. 2.1xNo. of Companies7PS01.63.24.86.48+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 5AP is expensive based on its Price-To-Sales Ratio (21.5x) compared to the German Software industry average (2.1x).

Price to Sales Ratio vs Fair Ratio

What is 5AP's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

5AP PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio20.2x
Fair PS Ratio16.6x

Price-To-Sales vs Fair Ratio: 5AP is expensive based on its Price-To-Sales Ratio (21.5x) compared to the estimated Fair Price-To-Sales Ratio (16.6x).

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 5AP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€237.80
€267.99
+12.70%
15.34%€323.85€140.20n/a50
Jun ’27€258.45
€203.02
-21.45%
19.04%€275.23€98.05n/a48
May ’27€152.72
€175.92
+15.19%
12.77%€226.15€97.29n/a50
Apr ’27€138.56
€178.95
+29.15%
12.47%€229.28€98.63n/a49
Mar ’27€125.36
€176.87
+41.09%
12.85%€224.46€96.56n/a47
Feb ’27€148.96
€191.00
+28.22%
10.69%€223.45€110.46n/a48
Jan ’27€159.40
€192.44
+20.72%
11.77%€217.80€111.89n/a49
Dec ’26€161.60
€194.12
+20.12%
11.74%€220.55€113.30n/a48
Nov ’26€190.16
€187.07
-1.62%
11.30%€214.65€112.48n/a48
Oct ’26€176.12
€183.71
+4.31%
10.95%€209.35€111.94n/a48
Sep ’26€162.20
€183.64
+13.22%
10.86%€206.16€112.53n/a47
Aug ’26€149.58
€183.64
+22.77%
11.15%€202.95€106.22n/a47
Jul ’26€167.34
€179.94
+7.53%
10.91%€199.33€104.33n/a50
Jun ’26€168.40
€186.64
+10.83%
10.90%€206.99€108.34€258.4549
May ’26€164.72
€186.33
+13.12%
10.98%€207.27€108.49€152.7247
Apr ’26€158.86
€197.59
+24.38%
10.97%€222.46€114.01€138.5649
Mar ’26€183.48
€205.73
+12.13%
11.11%€230.71€118.24€125.3648
Feb ’26€177.92
€193.71
+8.88%
14.00%€230.06€107.84€148.9649
Jan ’26€176.88
€197.46
+11.64%
12.14%€231.67€108.60€159.4049
Dec ’25€182.53
€194.00
+6.29%
9.97%€219.43€130.41€161.6049
Nov ’25€167.10
€176.72
+5.75%
8.73%€206.87€126.88€190.1650
Oct ’25€148.25
€169.85
+14.57%
7.78%€188.08€123.59€176.1248
Sep ’25€162.48
€171.02
+5.26%
6.83%€187.80€137.24€162.2048
Aug ’25€145.78
€160.14
+9.85%
8.20%€181.16€127.19€149.5848
Jul ’25€158.50
€160.22
+1.08%
7.94%€179.70€128.36€167.3448
Jun ’25€135.38
€156.35
+15.50%
8.02%€177.45€126.75€168.4048
€263.99
Fair Value
9.9% undervalued intrinsic discount
50
Number of Analysts

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 Analysis2026/06/11 22:39
End of Day Share Price 2026/06/10 00:00
Earnings2026/04/30
Annual Earnings2025/07/31

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.

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 Github.

Analyst Sources

Palo Alto Networks, Inc. is covered by 79 analysts. 51 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Adam ShepherdArete Research Services LLP
Ellie BagshawArete Research Services LLP
Joseph BonnerArgus Research Company