Palo Alto Networks Valuation

Q: What is the Fair Price of 1PANW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

1PANW (€356.95) is trading below our estimate of [[fair value]] (€481.76)

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

Below Fair Value: 1PANW (€356.95) is trading below our estimate of fair value (€481.76)

Significantly Below Fair Value: 1PANW is trading below fair value by more than 20%.

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 1PANW. This is calculated by dividing 1PANW's market cap by their current preferred multiple.
What is 1PANW's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	n/a

1PANW 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/Revenue	14.8x
Enterprise Value/EBITDA	108.5x
PEG Ratio	-21.8x

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.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	67.7x
NOW ServiceNow	153.6x	21.7%	US$205.2b
FTNT Fortinet	47.1x	12.5%	US$59.6b
REY Reply	24.5x	9.7%	€5.1b
ORCL Oracle	45.8x	16.5%	US$476.0b
1PANW Palo Alto Networks	48.9x	-2.2%	€119.9b

Price-To-Earnings vs Peers: 1PANW is good value based on its Price-To-Earnings Ratio (48.9x) compared to the peer average (67.7x).

Price to Earnings Ratio vs Industry

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

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	46.2%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	46.2%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: 1PANW is expensive based on its Price-To-Earnings Ratio (48.9x) compared to the European Software industry average (28.9x).

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 Ratio	48.9x
Fair PE Ratio	n/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.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	€356.95	€357.54 +0.2%	8.8%	€419.22	€257.12	n/a	49
Oct ’25	n/a	€339.82 0%	7.8%	€376.28	€247.27	n/a	48
Sep ’25	n/a	€342.04 0%	6.8%	€375.61	€274.48	n/a	48
Aug ’25	n/a	€320.28 0%	8.2%	€362.32	€254.38	n/a	48
Jul ’25	n/a	€320.43 0%	7.9%	€359.40	€256.71	n/a	48
Jun ’25	n/a	€314.10 0%	8.0%	€356.47	€254.62	n/a	48
May ’25	n/a	€315.73 0%	9.5%	€382.38	€248.97	n/a	47
Apr ’25	n/a	€309.47 0%	9.8%	€374.60	€243.91	n/a	46
Mar ’25	n/a	€310.80 0%	9.9%	€376.56	€245.18	n/a	45
Feb ’25	n/a	€304.26 0%	14.1%	€374.83	€223.05	n/a	45
Jan ’25	n/a	€268.98 0%	13.2%	€362.32	€172.10	n/a	44
Dec ’24	n/a	€256.58 0%	8.7%	€311.71	€174.19	n/a	43
Nov ’24	n/a	€263.60 0%	8.9%	€321.71	€179.78	€335.80	43
Oct ’24	n/a	€260.71 0%	8.3%	€321.91	€179.89	n/a	42
Sep ’24	n/a	€251.35 0%	8.3%	€311.34	€173.98	n/a	41
Aug ’24	n/a	€228.01 0%	11.2%	€277.77	€162.86	n/a	41
Jul ’24	n/a	€225.00 0%	9.5%	€277.87	€165.62	n/a	41
Jun ’24	n/a	€219.64 0%	8.1%	€257.32	€168.43	n/a	41
May ’24	n/a	€202.31 0%	10.1%	€250.66	€127.61	n/a	42
Apr ’24	n/a	€206.56 0%	10.1%	€257.87	€131.28	n/a	42
Mar ’24	n/a	€205.35 0%	9.5%	€239.16	€131.31	n/a	41
Feb ’24	n/a	€186.50 0%	11.8%	€227.58	€127.44	n/a	42
Jan ’24	n/a	€201.66 0%	10.1%	€252.48	€131.89	n/a	41
Dec ’23	n/a	€209.19 0%	9.6%	€259.61	€135.62	n/a	41
Nov ’23	n/a	€222.08 0%	9.2%	€277.34	€167.01	n/a	39

Analyst Forecast: Target price is lower than the current share price.