Palo Alto Networks (PANW): Valuation Insights After IGEL Partnership Expands Secure Browser Offering

Palo Alto Networks (PANW) is in focus as IGEL announced the availability of the Prisma Browser on its App Portal, expanding secure browsing options for organizations navigating distributed or browser-based workflows. This collaboration responds to the increasing need for Zero Trust security and compliance across industries.

See our latest analysis for Palo Alto Networks.

Palo Alto Networks has reached its highest share price since going public, with recent innovations like Prisma Browser helping to propel momentum. The stock’s strong 21.9% year-to-date share price gain and a total shareholder return of nearly 22% over the past year highlight the market’s continued confidence in the company’s growth and leadership in cybersecurity. Its notable 5-year total return of nearly 496% reflects robust, long-term value creation.

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But with shares at all-time highs and analyst targets close to current prices, the key question for investors is whether Palo Alto Networks still offers value or if the market is already pricing in future growth.

Most Popular Narrative: Fairly Valued

Palo Alto Networks closed at $220.29, just above the most widely followed narrative’s fair value estimate of $216.33 per share. This sets up a razor-thin margin and reflects how closely market expectations are tracking with the latest analyst consensus.

Ongoing industry consolidation, as enterprises seek to simplify and maximize the effectiveness of their security stack, has strengthened the trend towards platformization. This has resulted in larger multi-platform deal sizes, improved cross-sell, higher net retention rates (120%), and near zero churn among platformized clients. All of these factors support future margin expansion and earnings growth.

Read the complete narrative.

What hidden financial levers are behind this call? Dive into relentless revenue growth, margin expansion, and bold cross-platform assumptions powering the consensus. Curious which forecasts could make or break this fair value? Discover the narrative’s blueprint by clicking for the details Wall Street is watching.

Result: Fair Value of $216.33 (ABOUT RIGHT)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent integration hurdles and mounting competition in AI-powered security could challenge Palo Alto Networks’ growth outlook. These factors may potentially spark shifts in the prevailing narrative.

Find out about the key risks to this Palo Alto Networks narrative.

Another View: Our DCF Model Says Undervalued

While the consensus price target suggests Palo Alto Networks is "about right," our SWS DCF model points in a different direction. It estimates fair value at $235.03, which is about 6.3% higher than the current share price. This signals a possible undervaluation. Could the market be missing long-term cash flow strength?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Palo Alto Networks for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Palo Alto Networks Narrative

If you want to follow your own instincts or dive into the numbers yourself, it only takes a few minutes to build your own viewpoint, and Do it your way.

A great starting point for your Palo Alto Networks research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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