# Palo Alto Networks Inc. (PANW) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Financial Services / Diversified Financial Services. Price $333.26, market value $271.6 billion.

## Valuation
- **P/E (trailing): 284.8×** (5-yr avg 116.1×, 3-yr avg 116.1×). Palo Alto Networks Inc. trades at 284.8× trailing earnings, well above its own five-year average of 116.1×: investors are paying up relative to the company's past. The Financial Services median in the September 2026 study was 13.1×. Forward P/E is 68.3×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 25.6×**. Each dollar of revenue is priced at 25.6×, a level that requires very high margins or very fast growth to justify.
- **Price / book: 9.8×**. The shares trade at 9.8× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 167.7×**. Enterprise value is 167.7× 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 3.2%). Free cash flow equals 1.4% of the market value, below its five-year average of 3.2%, so the shares are pricier on cash than usual.
- **Earnings yield: 0.4%**. The inverse of the P/E: 0.4% of the price is earned each year.

## Profitability
- **Gross margin: 71.9%**. Palo Alto Networks Inc. keeps 71.9% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 9.6%**. 9.6% of revenue is left after running the business.
- **Net margin: 12.3%**. 12.3% of each dollar of sales reaches the bottom line.
- **Return on equity: 14.5%**. 14.5% on shareholders' equity is solid.
- **Return on invested capital: 10.7%**. Return on all capital, debt included, is 10.7%.
- **Return on assets: 3.6%**. Each dollar of assets produces 3.6% of profit; low single digits are normal for banks and insurers.

## Growth
- **Revenue growth (1 yr): 14.9%** (3-yr 18.8%/yr, 5-yr 22.0%/yr). Revenue grew 14.9% over the last year, against 22.0% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -56.0%**. Earnings per share fell 56.0%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 24.6%/yr**. Free cash flow has compounded at 24.6% a year over three years.

## Financial health
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.
- **Cash and short-term investments: $2.3 billion**. Leverage ratios are shown differently for banks and insurers, whose balance sheets are built on deposits and reserves; use return on equity and the regulatory capital in the filings instead.

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

## Price and momentum
- **Total return (1 yr): 73.3%** (YTD 80.9%, 3-mo 22.5%). The shares are up 73.3% over twelve months including dividends.
- **From 52-week high: -16.5%** (138.8% above the low). Trading 16% 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): 43**. An RSI of 43 is neutral.
- **Beta (1 yr): 1.30** (volatility 45%). Beta of 1.30 against the S&P 500: the shares move much more than the market.

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

Not investment advice.