Palo Alto Networks, Inc. (PANW) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-76.5%

$85.37

vs $363.02 price

Levered DCF

$270.28

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

8.69

Safe zone

Rating

B-

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	721.37×	101.52×	40.19×	171.21×	-188.02×	-77.34×	-92.72×	-260.41×
P/B	9.04×	14.7×	20.05×	43.35×	238.12×	50.38×	22.51×	13.5×
P/S	21.65×	12.47×	12.91×	11×	9.09×	9.04×	7.28×	7.38×
EV / EBITDA	178.67×	58.27×	81.06×	88.52×	542.25×	-861.26×	424.53×	134.14×
Gross margin	70.4%	73.4%	74.3%	72.3%	68.8%	70.0%	70.7%	72.1%
Operating margin	6.1%	13.5%	8.5%	5.6%	-3.4%	-7.1%	-5.3%	-1.9%
Net margin	2.7%	12.3%	32.1%	6.4%	-4.9%	-11.7%	-7.8%	-2.8%
Current ratio	0.87×	0.89×	0.89×	0.78×	0.77×	0.91×	1.91×	1.78×
Debt / equity	0.09×	0.04×	0.26×	1.3×	18.82×	4.64×	3.1×	0.9×
Interest coverage	0×	414.3×	82.4×	14.24×	-6.89×	-1.86×	-2.02×	-0.64×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	1.1%	14.5%	49.9%	25.1%	-127.1%	-65.3%	-24.2%	-5.2%
Return on invested capital	1.0%	5.7%	5.2%	3.4%	-2.5%	-4.6%	-2.8%	-1.2%
Return on assets	0.6%	4.8%	12.9%	3.0%	-2.2%	-4.9%	-2.9%	-1.2%
Free cash flow yield	1.7%	3.0%	3.0%	3.5%	3.6%	3.6%	3.3%	4.3%
Earnings yield	0.1%	1.0%	2.5%	0.6%	-0.5%	-1.3%	-1.1%	-0.4%
Enterprise value	$248.5B	$113.1B	$103.5B	$76.9B	$51.8B	$40.1B	$25.3B	$21.9B
Net debt / EBITDA	-0.01×	-0.99×	-0.15×	1.31×	19.19×	-35.73×	7.78×	2.87×
Cash conversion cycle (days)	103	111	131	126	122	90	88	40