PANWPalo Alto Networks
Is the price fair?
A demanding price: at the top of its own P/E range and rich vs its sector.
Priced for ~20% a year FCF growth. Roughly in line with its three-year revenue growth of 19% a year.
Expensive vs its own history: P/E 147.0 vs a 106.1 median over 12 quarters (+39% vs median).
Sector median 30.5× across 203 covered peers. EV/EBIT counts debt as part of the price, so a cash-rich and a borrowed company can be compared on the same footing.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The growth-implied estimate assumes a fixed discount rate; capital-heavy sectors look structurally rich on it.
What PANW's price assumes
Palo Alto Networks trades at 891× earnings against 34.2× for the median Software - Infrastructure name, more expensive than its own group.
Trailing P/E · Software - Infrastructure median 34.2 · 26.0× the median: the market pays up for this one
- Price / sales
- 25.4
Price / sales · today's price, fiscal year to Jul 31, 2025
- Free cash flow yield
- 1.8%
Free cash flow yield · Software - Infrastructure median 5.3%
- Growth the price implies
- +20%
Growth the price implies · The price pays for +20% free cash flow growth a year for a decade; the business has delivered +16% a year over the last three.
Details›
- Price / booktoday's price, fiscal year to Jul 31, 2025
- 30.0
- EV / EBITtoday's price, fiscal year to Jul 31, 2025
- 186
- EV / salestoday's price, fiscal year to Jul 31, 2025
- 25.1
- Technology median P/E459 names
- 37.7
- Software - Infrastructure median P/E107 names
- 34.2
- Free cash flow, trailing twelve months
- $4.11B
- Market capitalisation
- $234.5B
- 3-year revenue growth
- +19%
- 3-year free cash flow growth
- +16%
| Method | Per share |
|---|---|
| Its own P/E history, lower quartile | $24.19 |
| Its own P/E history, median | $49.87 |
| Its own P/E history, upper quartile | $64.78 |
| 52-week range | $141.67 – $420.06 |
| Today | $418.93 |
Multiples from SEC filings and end-of-day closes; implied growth from a reverse discounted cash flow. Group medians across the names Ryufin tracks.
Software, Infrastructure
The closest names by size in the same industry