Palo Alto Networks, Inc.

BIT:1PANW Stock Report

Market Cap: €117.6b

Palo Alto Networks Valuation

Is 1PANW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 1PANW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1PANW (€177.64) is trading below our estimate of fair value (€219.45)

Significantly Below Fair Value: 1PANW is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1PANW?

Key metric: As 1PANW is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1PANW. This is calculated by dividing 1PANW's market cap by their current earnings.
What is 1PANW's PE Ratio?
PE Ratio44.7x
EarningsUS$2.73b
Market CapUS$122.17b

Price to Earnings Ratio vs Peers

How does 1PANW's PE Ratio compare to its peers?

The above table shows the PE ratio for 1PANW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average69.3x
FTNT Fortinet
47.7x10.6%US$73.6b
NOW ServiceNow
164.9x21.9%US$223.1b
REY Reply
24.6x8.5%€5.7b
ORCL Oracle
40.2x16.6%US$472.6b
1PANW Palo Alto Networks
44.7x-3.7%€122.2b

Price-To-Earnings vs Peers: 1PANW is good value based on its Price-To-Earnings Ratio (44.7x) compared to the peer average (70.1x).

Price to Earnings Ratio vs Industry

How does 1PANW's PE Ratio compare vs other companies in the European Software Industry?

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
1PANW 44.7xIndustry Avg. 26.4xNo. of Companies19PE020406080100+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1PANW 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 1PANW'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.

1PANW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio44.7x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 1PANW's Price-To-Earnings Fair Ratio for valuation analysis.

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 1PANW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€177.64
€196.46
+10.6%
12.2%€230.86€108.21n/a49
Dec ’25€183.63
€194.00
+5.7%
10.0%€219.43€130.41n/a49
Nov ’25€167.90
€176.72
+5.3%
8.7%€206.87€126.88n/a50
Oct ’25n/a
€169.91
0%
7.8%€188.14€123.63n/a48
Sep ’25n/a
€171.02
0%
6.8%€187.80€137.24n/a48
Aug ’25n/a
€160.14
0%
8.2%€181.16€127.19n/a48
Jul ’25n/a
€160.22
0%
7.9%€179.70€128.36n/a48
Jun ’25n/a
€157.05
0%
8.0%€178.24€127.31n/a48
May ’25n/a
€157.87
0%
9.5%€191.19€124.48n/a47
Apr ’25n/a
€154.73
0%
9.8%€187.30€121.95n/a46
Mar ’25n/a
€155.40
0%
9.9%€188.28€122.59n/a45
Feb ’25n/a
€152.13
0%
14.1%€187.41€111.52n/a45
Jan ’25n/a
€134.49
0%
13.2%€181.16€86.05n/a44
Dec ’24n/a
€128.29
0%
8.7%€155.86€87.10€183.6343
Nov ’24n/a
€131.80
0%
8.9%€160.85€89.89€167.9043
Oct ’24n/a
€130.36
0%
8.3%€160.96€89.95n/a42
Sep ’24n/a
€125.67
0%
8.3%€155.67€86.99n/a41
Aug ’24n/a
€114.00
0%
11.2%€138.89€81.43n/a41
Jul ’24n/a
€112.50
0%
9.5%€138.94€82.81n/a41
Jun ’24n/a
€109.82
0%
8.1%€128.66€84.21n/a41
May ’24n/a
€101.15
0%
10.1%€125.33€63.81n/a42
Apr ’24n/a
€103.28
0%
10.1%€128.93€65.64n/a42
Mar ’24n/a
€102.68
0%
9.5%€119.58€65.65n/a41
Feb ’24n/a
€93.25
0%
11.8%€113.79€63.72n/a42
Jan ’24n/a
€100.83
0%
10.1%€126.24€65.95n/a41
Dec ’23n/a
€104.60
0%
9.6%€129.81€67.81n/a41

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 10:10
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