(PANW) Palo Alto Networks - Ratings and Ratios
Firewall, Cloud, Prisma, Cortex, Subscription
EPS (Earnings per Share)
Revenue
| Risk via 10d forecast | |
|---|---|
| Volatility | 42.0% |
| Value at Risk 5%th | 66.4% |
| Relative Tail Risk | -3.86% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.07 |
| Alpha | -18.16 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.570 |
| Beta | 1.191 |
| Beta Downside | 1.018 |
| Drawdowns 3y | |
|---|---|
| Max DD | 30.49% |
| Mean DD | 8.79% |
| Median DD | 7.36% |
Description: PANW Palo Alto Networks September 25, 2025
Palo Alto Networks (NASDAQ:PANW) is a U.S.-based cybersecurity vendor that sells a broad suite of cloud-native and network-based security solutions across the Americas, EMEA, APAC and Japan. Its flagship offerings include the Prisma Access SASE platform, Strata Cloud Manager for security orchestration, and Prisma AIR S for AI-model protection, complemented by virtual firewalls (VM-Series, CN-Series) for multi- and hybrid-cloud environments.
The company’s Cortex platform delivers AI-driven security-operations capabilities through Cortex XSIAM, XDR, XSOAR, and Xpanse, while its Unit 42 team provides threat-intelligence and advisory services. Palo Alto also monetises a wide range of subscription modules-threat prevention, DNS security, IoT protection, SaaS security, data-loss-prevention, and more-plus professional, education, and support services sold both directly and through channel partners to enterprises, service providers, and government entities in sectors such as financial services, healthcare, and manufacturing.
Recent performance metrics (FY 2024, disclosed in the company’s 10-K) show total revenue of **$5.1 billion**, a **23 % year-over-year increase**, and subscription-based recurring revenue (ARR) growing at **≈30 % CAGR** over the past three years. Gross margin remained stable at **≈75 %**, reflecting the high-margin nature of SaaS subscriptions. The firm’s free cash flow conversion improved to **≈85 %** of operating cash flow, indicating strong cash generation despite continued R&D and sales-force expansion.
Key macro drivers underpinning PANW’s growth outlook include: (1) the accelerating shift to public-cloud and hybrid-cloud workloads, which raises demand for SASE and cloud-native firewalls; (2) rising corporate cyber-spending, projected by Gartner to exceed **$250 billion** globally in 2025, with AI-related security solutions emerging as a fast-growing sub-segment; and (3) tightening regulatory regimes (e.g., GDPR, CCPA, and upcoming U.S. data-privacy legislation) that increase enterprise spend on data-loss-prevention and compliance-focused services.
For analysts seeking a deeper, data-driven valuation of PANW’s upside potential, a quick look at the company’s metrics on ValueRay can surface comparable peer multiples and scenario-based forecasts that may sharpen your investment thesis.
PANW Stock Overview
| Market Cap in USD | 140,387m |
| Sub-Industry | Systems Software |
| IPO / Inception | 2012-07-20 |
| Return 12m vs S&P 500 | -15.8% |
| Analyst Rating | 4.13 of 5 |
PANW Dividends
Currently no dividends paidPANW Growth Ratios
| Metric | Value |
|---|---|
| CAGR 3y | 29.22% |
| CAGR/Max DD Calmar Ratio | 0.96 |
| CAGR/Mean DD Pain Ratio | 3.33 |
| Current Volume | 16079k |
| Average Volume | 4917.1k |
Piotroski VR‑10 (Strict, 0-10) 4.5
| Net Income (1.13b TTM) > 0 and > 6% of Revenue (6% = 553.3m TTM) |
| FCFTA 0.16 (>2.0%) and ΔFCFTA 0.25pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue -9.59% (prev -10.38%; Δ 0.78pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.16 (>3.0%) and CFO 3.72b > Net Income 1.13b (YES >=105%, WARN >=100%) |
| Net Debt (-1.93b) to EBITDA (1.94b) ratio: -0.99 <= 3.0 (WARN <= 3.5) |
| Current Ratio 0.89 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (709.0m) change vs 12m ago 0.17% (target <= -2.0% for YES) |
| Gross Margin 73.41% (prev 74.35%; Δ -0.93pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 42.33% (prev 40.16%; Δ 2.18pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 532.5 (EBITDA TTM 1.94b / Interest Expense TTM 3.00m) >= 6 (WARN >= 3) |
Altman Z'' 1.11
| (A) -0.04 = (Total Current Assets 7.10b - Total Current Liabilities 7.99b) / Total Assets 23.58b |
| (B) 0.11 = Retained Earnings (Balance) 2.48b / Total Assets 23.58b |
| (C) 0.07 = EBIT TTM 1.60b / Avg Total Assets 21.78b |
| (D) 0.50 = Book Value of Equity 7.82b / Total Liabilities 15.75b |
| Total Rating: 1.11 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 67.64
| 1. Piotroski 4.50pt |
| 2. FCF Yield 2.70% |
| 3. FCF Margin 40.30% |
| 4. Debt/Equity 0.04 |
| 5. Debt/Ebitda -0.99 |
| 6. ROIC - WACC (= -0.90)% |
| 7. RoE 16.59% |
| 8. Rev. Trend 97.34% |
| 9. EPS Trend -65.11% |
What is the price of PANW shares?
Over the past week, the price has changed by -9.62%, over one month by -12.63%, over three months by +0.35% and over the past year by -5.79%.
Is PANW a buy, sell or hold?
- Strong Buy: 26
- Buy: 11
- Hold: 13
- Sell: 0
- Strong Sell: 2
What are the forecasts/targets for the PANW price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 222.1 | 20% |
| Analysts Target Price | 222.1 | 20% |
| ValueRay Target Price | 225 | 21.6% |
PANW Fundamental Data Overview November 15, 2025
P/E Trailing = 128.2813
P/E Forward = 53.7634
P/S = 15.2239
P/B = 17.9003
P/EG = 1.8264
Beta = 0.772
Revenue TTM = 9.22b USD
EBIT TTM = 1.60b USD
EBITDA TTM = 1.94b USD
Long Term Debt = 338.2m USD (from capitalLeaseObligations, last quarter)
Short Term Debt = 460.3m USD (from shortTermDebt, two quarters ago)
Debt = 338.2m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -1.93b USD (from netDebt column, last quarter)
Enterprise Value = 137.82b USD (140.39b + Debt 338.2m - CCE 2.90b)
Interest Coverage Ratio = 532.5 (Ebit TTM 1.60b / Interest Expense TTM 3.00m)
FCF Yield = 2.70% (FCF TTM 3.72b / Enterprise Value 137.82b)
FCF Margin = 40.30% (FCF TTM 3.72b / Revenue TTM 9.22b)
Net Margin = 12.30% (Net Income TTM 1.13b / Revenue TTM 9.22b)
Gross Margin = 73.41% ((Revenue TTM 9.22b - Cost of Revenue TTM 2.45b) / Revenue TTM)
Gross Margin QoQ = 73.23% (prev 72.94%)
Tobins Q-Ratio = 5.85 (Enterprise Value 137.82b / Total Assets 23.58b)
Interest Expense / Debt = 0.06% (Interest Expense 200.0k / Debt 338.2m)
Taxrate = 57.11% (338.0m / 591.8m)
NOPAT = 685.1m (EBIT 1.60b * (1 - 57.11%))
Current Ratio = 0.89 (Total Current Assets 7.10b / Total Current Liabilities 7.99b)
Debt / Equity = 0.04 (Debt 338.2m / totalStockholderEquity, last quarter 7.82b)
Debt / EBITDA = -0.99 (Net Debt -1.93b / EBITDA 1.94b)
Debt / FCF = -0.52 (Net Debt -1.93b / FCF TTM 3.72b)
Total Stockholder Equity = 6.84b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.81% (Net Income 1.13b / Total Assets 23.58b)
RoE = 16.59% (Net Income TTM 1.13b / Total Stockholder Equity 6.84b)
RoCE = 22.27% (EBIT 1.60b / Capital Employed (Equity 6.84b + L.T.Debt 338.2m))
RoIC = 9.48% (NOPAT 685.1m / Invested Capital 7.23b)
WACC = 10.39% (E(140.39b)/V(140.73b) * Re(10.41%) + D(338.2m)/V(140.73b) * Rd(0.06%) * (1-Tc(0.57)))
Discount Rate = 10.41% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 81.65 | Cagr: 0.67%
[DCF Debug] Terminal Value 73.30% ; FCFE base≈3.47b ; Y1≈4.08b ; Y5≈6.25b
Fair Price DCF = 105.6 (DCF Value 72.25b / Shares Outstanding 684.0m; 5y FCF grow 18.84% → 3.0% )
EPS Correlation: -65.11 | EPS CAGR: -57.86% | SUE: -4.0 | # QB: 0
Revenue Correlation: 97.34 | Revenue CAGR: 19.24% | SUE: 2.96 | # QB: 1
Additional Sources for PANW Stock
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Fund Manager Positions: Dataroma | Stockcircle