Palo Alto Networks Stock Fundamentals
| PANW Stock | USD 293.49 11.81 4.19% |
Palo Alto Networks fundamentals help investors to digest information that contributes to Palo Alto's financial success or failures. It also enables traders to predict the movement of Palo Stock. The fundamental analysis module provides a way to measure Palo Alto's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Palo Alto stock.
At this time, Palo Alto's Research Development is fairly stable compared to the past year. EBITDA is likely to climb to about 716.7 M in 2024, whereas Net Interest Income is likely to drop (25.7 M) in 2024. Palo | Select Account or Indicator |
Palo Alto Networks Company Return On Equity Analysis
Palo Alto's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Current Palo Alto Return On Equity | 0.9 |
Most of Palo Alto's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Palo Alto Networks is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
| Competition |
Palo Total Stockholder Equity
Total Stockholder Equity |
|
Based on the latest financial disclosure, Palo Alto Networks has a Return On Equity of 0.8952. This is 107.44% lower than that of the Software sector and significantly higher than that of the Information Technology industry. The return on equity for all United States stocks is notably lower than that of the firm.
Palo Alto Networks Fundamental Drivers Relationships
Comparative valuation techniques use various fundamental indicators to help in determining Palo Alto's current stock value. Our valuation model uses many indicators to compare Palo Alto value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Palo Alto competition to find correlations between indicators driving Palo Alto's intrinsic value. More Info.Palo Alto Networks is considered to be number one stock in return on equity category among related companies. It is regarded second in return on asset category among related companies reporting about 0.03 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Palo Alto Networks is roughly 28.97 . At this time, Palo Alto's Return On Equity is fairly stable compared to the past year.Comparative valuation analysis is a catch-all model that can be used if you cannot value Palo Alto by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Palo Alto's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Palo Alto's earnings, one of the primary drivers of an investment's value.Palo Return On Equity Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Palo Alto's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Palo Alto could also be used in its relative valuation, which is a method of valuing Palo Alto by comparing valuation metrics of similar companies.Palo Alto is currently under evaluation in return on equity category among related companies.
Palo Alto Current Valuation Drivers
We derive many important indicators used in calculating different scores of Palo Alto from analyzing Palo Alto's financial statements. These drivers represent accounts that assess Palo Alto's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Palo Alto's important valuation drivers and their relationship over time.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Market Cap | 21.4B | 24.8B | 38.5B | 50.0B | 45.0B | 47.3B | |
| Enterprise Value | 21.9B | 25.3B | 40.1B | 51.8B | 46.7B | 49.0B |
Palo Alto ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Palo Alto's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Palo Alto's managers, analysts, and investors.Environment Score | Governance Score | Social Score |
Palo Fundamentals
| Return On Equity | 0.9 | ||||
| Return On Asset | 0.0309 | ||||
| Profit Margin | 0.30 % | ||||
| Operating Margin | 0.12 % | ||||
| Current Valuation | 88.54 B | ||||
| Shares Outstanding | 323.1 M | ||||
| Shares Owned By Insiders | 1.11 % | ||||
| Shares Owned By Institutions | 84.53 % | ||||
| Number Of Shares Shorted | 12.36 M | ||||
| Price To Earning | (55.17) X | ||||
| Price To Book | 20.69 X | ||||
| Price To Sales | 11.98 X | ||||
| Revenue | 6.89 B | ||||
| Gross Profit | 3.78 B | ||||
| EBITDA | 593.5 M | ||||
| Net Income | 439.7 M | ||||
| Cash And Equivalents | 3.63 B | ||||
| Cash Per Share | 12.15 X | ||||
| Total Debt | 2.27 B | ||||
| Current Ratio | 0.77 X | ||||
| Book Value Per Share | 13.50 X | ||||
| Cash Flow From Operations | 2.78 B | ||||
| Short Ratio | 2.16 X | ||||
| Earnings Per Share | 6.47 X | ||||
| Price To Earnings To Growth | 1.12 X | ||||
| Target Price | 336.63 | ||||
| Number Of Employees | 14.79 K | ||||
| Beta | 1.2 | ||||
| Market Capitalization | 91.01 B | ||||
| Total Asset | 14.5 B | ||||
| Retained Earnings | (1.23 B) | ||||
| Working Capital | (1.69 B) | ||||
| Current Asset | 1.77 B | ||||
| Current Liabilities | 846.8 M | ||||
| Net Asset | 14.5 B |
About Palo Alto Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Palo Alto Networks's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Palo Alto using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Palo Alto Networks based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.| Last Reported | Projected for Next Year | ||
| Current Deferred Revenue | 5.4 B | 5.6 B | |
| Total Revenue | 7.9 B | 8.3 B | |
| Cost Of Revenue | 2.2 B | 2.3 B | |
| Stock Based Compensation To Revenue | 0.14 | 0.13 | |
| Sales General And Administrative To Revenue | 0.07 | 0.12 | |
| Research And Ddevelopement To Revenue | 0.27 | 0.25 | |
| Capex To Revenue | (0.02) | (0.02) | |
| Revenue Per Share | 20.46 | 21.48 | |
| Ebit Per Revenue | 0.05 | 0.05 |
Becoming a Better Investor with Macroaxis
Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as Palo Alto Networks using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.Build Optimal Portfolios
Align your risk with return expectations
Check out Palo Alto Piotroski F Score and Palo Alto Altman Z Score analysis. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Complementary Tools for Palo Stock analysis
When running Palo Alto's price analysis, check to measure Palo Alto's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Palo Alto is operating at the current time. Most of Palo Alto's value examination focuses on studying past and present price action to predict the probability of Palo Alto's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Palo Alto's price. Additionally, you may evaluate how the addition of Palo Alto to your portfolios can decrease your overall portfolio volatility.
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |
Is Palo Alto's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Palo Alto. If investors know Palo will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Palo Alto listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 18.56 | Earnings Share 6.47 | Revenue Per Share 24.27 | Quarterly Revenue Growth 0.193 | Return On Assets 0.0309 |
The market value of Palo Alto Networks is measured differently than its book value, which is the value of Palo that is recorded on the company's balance sheet. Investors also form their own opinion of Palo Alto's value that differs from its market value or its book value, called intrinsic value, which is Palo Alto's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Palo Alto's market value can be influenced by many factors that don't directly affect Palo Alto's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Palo Alto's value and its price as these two are different measures arrived at by different means. Investors typically determine if Palo Alto is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Palo Alto's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.