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Palo Alto Networks, Inc. (PANW)

Software - Infrastructure ยท Technology ยท $227.6B

overvalued
Intrinsic Value (Consensus)
$21.99
Current Price
$279.90
Margin of Safety
-92.1%
92.1% Above Intrinsic Value
Value: $22
Price: $280

High-growth stock: Palo Alto Networks, Inc. trades at 175x earnings. Our models use trailing earnings and may undervalue companies with strong future growth potential. The market may be pricing in growth that traditional valuation models don't fully capture.

Valuation Model Estimates

Current Price: $279.90
DCF (Discounted Cash Flow)
$38.78
Graham Number
$16.22
Earnings Power Value
$12.12
Relative Value (P/E)
$20.85
Dividend Discount Model
Not applicable
โ€”
Consensus Value
$21.99

Model Assumptions

Discount Rate
10.3%
Growth Rate
17.2%
Terminal Growth
2.5%
Risk-Free Rate
4.3%

Discount rate derived from CAPM (risk-free rate + beta ร— market risk premium). Growth rate based on trailing earnings growth, capped at 20%.

Health Score

C
62
Profitability
18/25
Strength
25/25
Valuation
0/25
Growth
19/25

Financial Health Signals

Extremely high P/E ratio (175) โ€” stock is priced for perfection
Low debt โ€” conservative balance sheet
Strong earnings growth (17% YoY)

Key Financials

EPS (TTM)
$1.21
EPS (Forward)
$1.42
Book Value
$9.62
P/E Ratio
174.8
Forward P/E
171.3
PEG Ratio
โ€”
ROE
14.5%
Debt/Equity
25%
Revenue Growth
14.9%
Earnings Growth
17.2%
Dividend Yield
N/A
Beta
0.95

Data last updated: 2026-06-16

Source: Yahoo Finance