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Palo Alto Networks

NSQ:PANW · US6974351057
SoftwareX-Large

360

49
EV / EBIT17
Price / Owner Earnings3
Owner Earnings Yield35
Dividend Yield1
Price/Sales5
EV / Gross Profit19
Price/Book23
Return on Capital37
Cash Return on Capital37
Return on Equity34
EBIT Margin37
Gross Profitability21
Cash Conversion92
Accruals48
Owner Earnings Margin44
Sales growth83
Profit Growth95
Long-Term EPS Growth44
Owner Earnings Growth13
Reinvestment82
Price momentum70
Debt load76
Refinancing45
Debt Payback100
Liquidity97
Analyst ratings67
Opinion Changes38
Price Target Upside18
Market mood97
Value Creation10/20creating some value
  • Creates more value than its capital costs
  • Owner earnings growing
  • Owner earnings per share growing
  • Reinvests at strong returns
  • Solid earnings base

What this means

Palo Alto Networks clears its cost of capital, but the record is mixed across the five tests. Real value creation, just not yet consistent.

Profile

CountryUSA
IndustrySoftware
SizeX-Large
TypePublic Company
ExchangeNASDAQGS
Founded2005
Employees19,529
Websitepaloaltonetworks.com
ISINUS6974351057
Last UpdateApr 2, 2026
Indices
NASDAQ 100 (USA)NASDAQ (USA)S&P 500 (USA)
Themes
Cloud InfrastructureArtificial IntelligenceDefenseTechNetwork SecurityCloud SecurityProcess AutomationEndpoint Security IntegrityDevSecOpsSoftware DevelopmentData ProtectionSecurity ManagementCyber SecuritySecurity

Description

Palo Alto Networks, Inc. operates as a global cybersecurity provider. The company's cybersecurity platforms and services help secure enterprise users, networks, clouds, and endpoints by delivering comprehensive cybersecurity backed by artificial int…

Analysis

Hope premium

Palo Alto Networks, Inc. is priced well ahead of what the underlying numbers justify, a pattern we describe as a hope premium.

On valuation, the picture is expensive. The owner-earnings multiple stands at 244.0×; owner earnings: the cash an owner could take out each year. The implied growth embedded in that price is around 41% a year, against analyst forecasts of 15%. The market is pricing in far more than analysts expect: heroic expectations.

Growth is moderate; the safety picture is sturdy. The company scores 10/20 on our value-creation score: creating some value.

Flags to be aware of: A large part of the company's book value is the price paid for past acquisitions. As always: this describes the company's numbers; it is not a recommendation.

360° rank · history

1007550250
92
2023202420252026

All-time high

93

Jan 2025

All-time low

43

Jan 2023

Average rank

73

across all years

Detailed & Historical Ranks

Deep dive into 15 detailed ranks and 3 years of history.

Current202520242023
Price/Sales
5
7
13
38
Price/Earnings
14
26
33
48
Price/Book
23
16
12
1
Dividend Yield
1
1
1
1
Value (overall)
8
11
14
19

Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.

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Make Sense of the Ranks

Every rank runs 1–100 against true peers. Higher is always better.

360° View
1 · Watch OutGood· 100
Value
1 · ExpensiveGood Value· 100
Quality
1 · Weak FundamentalsHigh Quality· 100
Growth
1 · Tough TimesHigh Growth· 100
Safety
1 · High LeverageWell-Financed· 100
Sentiment
1 · SkepticismPositive· 100
Learn More →