Palo Alto Fundamentals

PANW
 Stock
  

USD 526.88  10.37  2.01%   

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 Alto 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.
This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools.
  
Palo Alto Income Tax Expense is fairly stable at the moment as compared to the past year. Palo Alto reported Income Tax Expense of 8.39 Million in 2021.

Palo Alto Price to Sales Analysis

Palo Alto's Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
 2019 2020 2021 2022 (projected)
Accounts Payable63.6 M56.9 M51.21 M55.25 M
Receivables1.04 B1.24 B1.12 B1.2 B
P/S 
 = 
MV Per Share 
Revenue Per Share 
More About Price to Sales | All Equity Analysis

Current Palo Alto Price to Sales

    
  9.71 X  
Most of Palo Alto's fundamental indicators, such as Price to Sales, 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.

Palo Alto Price to Sales Historical Pattern

Today, most investors in Palo Alto Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Palo Alto's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's price to sales growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Palo Alto price to sales as a starting point in their analysis.
   Palo Alto Price to Sales   
Share
       Timeline  
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Compare to competition

Palo Alto Price to Sales Ratio

Price to Sales Ratio

9.51

Palo Alto Price to Sales Ratio is fairly stable at the moment as compared to the past year. Palo Alto reported Price to Sales Ratio of 8.49 in 2021
Based on the latest financial disclosure, the price to sales indicator of Palo Alto Networks is roughly 9.71 times. This is 103.56% higher than that of the Technology sector and significantly higher than that of the Software—Infrastructure industry. The price to sales for all United States stocks is 14.97% higher than that of the company.

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 rated top company in revenue category among related companies. It is considered to be number one stock in earnings per share category among related companies . Palo Alto Revenues is fairly stable at the moment as compared to the past year. Palo Alto reported Revenues of 3.83 Billion in 2021. 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 Alto Retained Earnings 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 Retained Earnings 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 retained earnings 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.
201720182019202020212022 (projected)
Net Income Per Employee(27.66 K)(11.68 K)(33.23 K)(47.64 K)(54.78 K)(59.11 K)
Revenue Per Employee425.04 K413.4 K424.14 K406.39 K365.75 K344.48 K
Average Assets2.44 B3.22 B4.24 B6.09 B7 B7.56 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA(36.7 M)79.3 M(11.2 M)(98.2 M)(112.93 M)(121.85 M)
Earnings Before Interest Taxes and Depreciation Amortization USD(106.1 M)(95.8 M)20.7 M163.1 M187.56 M202.37 M
Earnings before Tax(172.3 M)(180.1 M)(105.3 M)(74.6 M)(67.14 M)(72.44 M)
Average Equity672.62 M825.05 M795.25 M1.34 B1.54 B1.66 B
Enterprise Value11.68 B11.93 B18.01 B22 B25.3 B19.99 B
Free Cash Flow586.1 M705.4 M926.1 M924.4 M1.06 B1.15 B
Invested Capital1.57 B1.72 B2.6 B3.37 B3.88 B4.19 B
Invested Capital Average1.15 B1.56 B1.43 B3.27 B3.77 B4.06 B
Market Capitalization11.73 B12.1 B18.41 B21.74 B25 B19.89 B
Tangible Asset Value2.65 B3.15 B5.29 B4.96 B5.7 B6.15 B
Working Capital927.2 M775 M2.04 B1.61 B1.85 B2 B

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 Alto Fundamentals

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 ReportedProjected for 2022
Deferred Revenue3.3 B3.6 B
Cost of Revenue929.7 MB
Revenues3.8 B4.1 B
Revenue to Assets 0.48  0.61 
Revenue Per Employee365.7 K344.5 K
Palo Alto Networks, Inc. provides cybersecurity solutions worldwide. The company was incorporated in 2005 and is headquartered in Santa Clara, California. Palo Alto operates under SoftwareInfrastructure classification in the United States and is traded on NASDAQ Exchange. It employs 11870 people.

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Our tools can tell you how much better you can do entering a position in Palo Alto without increasing your portfolio risk or giving up expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate.risk-adjusted returns of your individual positions relative to your overall portfolio.

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Please check Palo Alto Piotroski F Score and Palo Alto Altman Z Score analysis. Note that the Palo Alto Networks information on this page should be used as a complementary analysis to other Palo Alto's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

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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 Alto 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.
Market Capitalization
52.3 B
Quarterly Revenue Growth YOY
0.29
Return On Assets
-0.014
Return On Equity
-0.58
The market value of Palo Alto Networks is measured differently than its book value, which is the value of Palo Alto 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 Palo Alto value 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.