Palo Alto Networks, Inc.

NasdaqGS:PANW Stock Report

Market Cap: US$126.8b

Palo Alto Networks Valuation

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

Below Fair Value: PANW ($396.4) is trading below our estimate of fair value ($461.43)

Significantly Below Fair Value: PANW 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 PANW?

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

The above table shows the Price to Earnings ratio for PANW. This is calculated by dividing PANW's market cap by their current earnings.
What is PANW's PE Ratio?
PE Ratio47.6x
EarningsUS$2.73b
Market CapUS$126.77b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PANW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average71.9x
NOW ServiceNow
162.6x21.7%US$218.8b
FTNT Fortinet
46.7x10.4%US$71.1b
ORCL Oracle
48.1x16.9%US$520.9b
GEN Gen Digital
30.2x14.3%US$18.6b
PANW Palo Alto Networks
47.6x-4.1%US$126.8b

Price-To-Earnings vs Peers: PANW is good value based on its Price-To-Earnings Ratio (47.6x) compared to the peer average (73x).

Price to Earnings Ratio vs Industry

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

11 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AISP Airship AI Holdings
4.8x-27.8%US$66.57m
GRRR Gorilla Technology Group
2.6x-67.4%US$55.50m
NISN Nisun International Enterprise Development Group
2xn/aUS$33.71m
NXTT Next Technology Holding
0.6xn/aUS$16.74m
PANW 47.6xIndustry Avg. 42.2xNo. of Companies12PE020406080100+
11 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PANW is expensive based on its Price-To-Earnings Ratio (47.6x) compared to the US Software industry average (42.2x).

Price to Earnings Ratio vs Fair Ratio

What is PANW'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.

PANW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio47.6x
Fair PE Ratio40.3x

Price-To-Earnings vs Fair Ratio: PANW is expensive based on its Price-To-Earnings Ratio (47.6x) compared to the estimated Fair Price-To-Earnings Ratio (40.3x).

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 PANW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$396.40
US$409.08
+3.2%
10.0%US$464.40US$276.00n/a48
Nov ’25US$362.64
US$384.42
+6.0%
8.7%US$450.00US$276.00n/a50
Oct ’25US$329.29
US$379.31
+15.2%
7.8%US$420.00US$276.00n/a48
Sep ’25US$362.72
US$378.83
+4.4%
6.8%US$416.00US$304.00n/a48
Aug ’25US$315.62
US$346.24
+9.7%
8.2%US$391.70US$275.00n/a48
Jul ’25US$340.90
US$343.26
+0.7%
7.9%US$385.00US$275.00n/a48
Jun ’25US$294.91
US$339.23
+15.0%
8.0%US$385.00US$275.00n/a48
May ’25US$287.34
US$336.07
+17.0%
9.5%US$407.00US$265.00n/a47
Apr ’25US$279.42
US$336.23
+20.3%
9.8%US$407.00US$265.00n/a46
Mar ’25US$302.40
US$335.92
+11.1%
9.9%US$407.00US$265.00n/a45
Feb ’25US$339.97
US$328.76
-3.3%
14.1%US$405.00US$241.00n/a45
Jan ’25US$294.88
US$296.95
+0.7%
13.2%US$400.00US$190.00n/a44
Dec ’24US$296.16
US$279.87
-5.5%
8.7%US$340.00US$190.00n/a43
Nov ’24US$244.86
US$278.59
+13.8%
8.9%US$340.00US$190.00US$362.6443
Oct ’24US$234.44
US$275.36
+17.5%
8.3%US$340.00US$190.00US$329.2942
Sep ’24US$242.72
US$274.49
+13.1%
8.3%US$340.00US$190.00US$362.7241
Aug ’24US$253.17
US$252.00
-0.5%
11.2%US$307.00US$180.00US$315.6241
Jul ’24US$255.51
US$244.54
-4.3%
9.5%US$302.00US$180.00US$340.9041
Jun ’24US$216.79
US$234.73
+8.3%
8.1%US$275.00US$180.00US$294.9141
May ’24US$183.30
US$221.95
+21.1%
10.1%US$275.00US$140.00US$287.3442
Apr ’24US$199.74
US$220.29
+10.3%
10.1%US$275.00US$140.00US$279.4242
Mar ’24US$186.94
US$218.95
+17.1%
9.5%US$255.00US$140.00US$302.4041
Feb ’24US$159.72
US$204.88
+28.3%
11.8%US$250.00US$140.00US$339.9742
Jan ’24US$139.54
US$214.05
+53.4%
10.1%US$268.00US$140.00US$294.8841
Dec ’23US$178.40
US$215.95
+21.0%
9.6%US$268.00US$140.00US$296.1641
Nov ’23US$170.77
US$219.40
+28.5%
9.2%US$274.00US$165.00US$244.8639

Analyst Forecast: Target price is less than 20% higher than the current share price.

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