# Palo Alto Networks Inc. (PANW) fundamentals

Data as of 2026-11-04. NASDAQ, United States. Sector: Technology / Software. Price $350.20, market value $286.6 billion.

## Valuation
- **P/E (trailing): 875.5×** (5-yr avg 294.5×, 3-yr avg 327.6×). Palo Alto Networks Inc. trades at 875.5× trailing earnings, well above its own five-year average of 294.5×: investors are paying up relative to the company's past. The Technology median in the September 2026 study was 32.1×. Forward P/E is 71.8×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 25.0×**. Each dollar of revenue is priced at 25.0×, a level that requires very high margins or very fast growth to justify.
- **Price / book: 10.4×**. The shares trade at 10.4× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 184.6×**. Enterprise value is 184.6× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 1.4%** (5-yr avg 2.8%). Free cash flow equals 1.4% of the market value, below its five-year average of 2.8%, so the shares are pricier on cash than usual.
- **Earnings yield: 0.1%**. The inverse of the P/E: 0.1% of the price is earned each year.

## Profitability
- **Gross margin: 70.4%**. Palo Alto Networks Inc. keeps 70.4% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 6.1%**. 6.1% of revenue is left after running the business.
- **Net margin: 2.7%**. 2.7% of each dollar of sales reaches the bottom line.
- **Return on equity: 1.1%**. 1.1% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 2.0%**. Return on all capital, debt included, is 2.0%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: 0.6%**. Each dollar of assets produces 0.6% of profit.

## Growth
- **Revenue growth (1 yr): 24.5%** (3-yr 18.5%/yr, 5-yr 22.0%/yr). Revenue grew 24.5% over the last year, against 22.0% a year compounded over five years.
- **EPS growth (1 yr): -75.0%** (3-yr -14.5%/yr). Earnings per share fell 75.0%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 16.1%/yr**. Free cash flow has compounded at 16.1% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.07**. Debt is 0.07 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Palo Alto Networks Inc. holds more cash than debt.
- **Current ratio: 0.87** (quick 0.87). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 9.25**. A Z-score of 9.25 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. Palo Alto Networks Inc. does not currently pay a dividend.

## Analyst view
- **Analyst consensus: buy** (50 analysts). 50 analysts cover Palo Alto Networks Inc.; the consensus is buy, with an average price target of $398.52 (+14% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 59.7%** (YTD 90.9%, 3-mo 1.3%). The shares are up 59.7% over twelve months including dividends.
- **From 52-week high: -19.0%** (150.9% above the low). Trading 19% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 42**. An RSI of 42 is neutral.
- **Beta (1 yr): 1.25** (volatility 50%). Beta of 1.25 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=PANW · Page: https://foliofundamentals.com/stocks/panw

Not investment advice.