Palo Alto Valuation
| PANW Stock | USD 384.37 12.03 3.03% |
At this time, the company appears to be overvalued. Palo Alto Networks holds a recent Real Value of $293.63 per share. The prevailing price of the company is $384.37. Our model determines the value of Palo Alto Networks from analyzing the company fundamentals such as Return On Equity of 0.75, shares outstanding of 328.1 M, and Operating Margin of 0.12 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Palo Alto's valuation include:
Price Book 21.4438 | Enterprise Value 124.4 B | Enterprise Value Ebitda 90.0968 | Price Sales 16.2017 | Forward PE 60.6061 |
Overvalued
Today
Please note that Palo Alto's price fluctuation is very steady at this time. Calculation of the real value of Palo Alto Networks is based on 3 months time horizon. Increasing Palo Alto's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Palo stock is determined by what a typical buyer is willing to pay for full or partial control of Palo Alto Networks. Since Palo Alto is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Palo Stock. However, Palo Alto's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 384.37 | Real 293.63 | Target 279.77 | Hype 384.74 | Naive 387.4 |
The intrinsic value of Palo Alto's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Palo Alto's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Palo Alto Networks helps investors to forecast how Palo stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Palo Alto more accurately as focusing exclusively on Palo Alto's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Palo Alto's intrinsic value based on its ongoing forecasts of Palo Alto's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Palo Alto's closest peers.
Palo Alto Cash |
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Palo Valuation Trend
Analysing the historical paterns of Palo Alto's enterprise value and its market capitalization is a good way to estimate and gauge the value of Palo Alto Networks over time and is usually enough for investors to make rational market timing decisions.
Palo Revenue by Product
Palo Alto Total Value Analysis
Palo Alto Networks is at this time estimated to have valuation of 124.41 B with market capitalization of 130.06 B, debt of 1.41 B, and cash on hands of 3.63 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Palo Alto fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
124.41 B | 130.06 B | 1.41 B | 3.63 B |
Palo Alto Investor Information
About 81.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 2.79. Palo Alto Networks recorded earning per share (EPS) of 7.73. The entity had not issued any dividends in recent years. The firm had 3:1 split on the 14th of September 2022. Based on the analysis of Palo Alto's profitability, liquidity, and operating efficiency, Palo Alto Networks is performing exceptionally good at the present time. It has a great chance to report excellent financial results in December.Palo Alto Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Palo Alto has an asset utilization ratio of 40.16 percent. This indicates that the Company is making $0.4 for each dollar of assets. An increasing asset utilization means that Palo Alto Networks is more efficient with each dollar of assets it utilizes for everyday operations.Palo Alto Ownership Allocation
Palo Alto owns a total of 328.1 Million outstanding shares. The majority of Palo Alto Networks outstanding shares are owned by third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in Palo Alto Networks to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Palo Alto. Please pay attention to any change in the institutional holdings of Palo Alto Networks as this could imply that something significant has changed or is about to change at the company. On November 11, 2024, Representative Marjorie Taylor Greene of US Congress acquired under $15k worth of Palo Alto Networks's common stock.Palo Alto Profitability Analysis
The company reported the previous year's revenue of 8.03 B. Net Income was 2.58 B with profit before overhead, payroll, taxes, and interest of 3.78 B.About Palo Alto Valuation
Our relative valuation model uses a comparative analysis of Palo Alto. We calculate exposure to Palo Alto's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Palo Alto's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 6 B | 6.3 B | |
| Pretax Profit Margin | 0.12 | 0.13 | |
| Operating Profit Margin | 0.09 | 0.09 | |
| Net Profit Margin | 0.32 | 0.34 | |
| Gross Profit Margin | 0.74 | 0.57 |
Palo Alto Growth Indicators
Investing in growth stocks can be very risky. If the company such as Palo Alto does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 354 M | |
| Quarterly Earnings Growth Y O Y | 0.591 | |
| Forward Price Earnings | 60.6061 |
Palo Alto Current Valuation Indicators
Valuation refers to the process of determining the present value of Palo Alto Networks and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Palo we look at many different elements of the entity such as Palo's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Palo Alto, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Palo Alto's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Palo Alto's worth.Additional Tools for Palo Stock Analysis
When running Palo Alto's price analysis, check to measure Palo Alto's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Palo Alto is operating at the current time. Most of Palo Alto's value examination focuses on studying past and present price action to predict the probability of Palo Alto's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Palo Alto's price. Additionally, you may evaluate how the addition of Palo Alto to your portfolios can decrease your overall portfolio volatility.