What Is Palo Alto Networks, Inc.'s (NASDAQ:PANW) Share Price Doing?

Let's talk about the popular Palo Alto Networks, Inc. (NASDAQ:PANW). The company's shares saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$377 and falling to the lows of US$262. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Palo Alto Networks' current trading price of US$284 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Palo Alto Networks’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for Palo Alto Networks

What Is Palo Alto Networks Worth?

Good news, investors! Palo Alto Networks is still a bargain right now. Our valuation model shows that the intrinsic value for the stock is $401.36, but it is currently trading at US$284 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Palo Alto Networks’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

Can we expect growth from Palo Alto Networks?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Though in the case of Palo Alto Networks, it is expected to deliver a highly negative earnings growth in the next few years, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.

What This Means For You

Are you a shareholder? Although PANW is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. We recommend you think about whether you want to increase your portfolio exposure to PANW, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you’ve been keeping tabs on PANW for some time, but hesitant on making the leap, we recommend you research further into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. Case in point: We've spotted 2 warning signs for Palo Alto Networks you should be mindful of and 1 of these makes us a bit uncomfortable.

If you are no longer interested in Palo Alto Networks, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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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.