* Note: Prices are in Million (M) USD.
Description:
Palo Alto Networks, Inc. provides cybersecurity platform solutions globally. The company is headquartered in Santa Clara, California.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $2,383 M
Debt : $806 M
EBITDA : $1,657 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Technology
Industry: Software - application
Based on sector, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 47.40
Since Forward PE Ratio is greater than 35, 0 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 16 overlapping fiscal years (max 20).Average Free Cash Flow: $837 M
Average Revenue: $2,422 M
Revenue Converted To Free Cash Flow (%): 34.6%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 25, 5 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-07-31): $8,028 M
Revenue 4 Years Ago (2020-07-31): $3,408 M
Last 5 Years Average Revenue Growth: 27%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-07-31): $708 M
Share Count 5 Years Ago (2020-07-31): $581 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $4.26
Trailing 12-Month Earnings Per Share (EPS): $3.80
Average Earnings Per Share (EPS): $4.03
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 13 valid ROE years (max 20).Average ROE: -23.6%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $191
52-Week Low: $144
Threshold Price (15% Above 52-Week Low): $166
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $117,156 M
Since Market Cap is between 100B - 500B, 3 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 4% exposure of Total Portfolio.
Value-Trade has assigned 23 points to above Palo Alto Networks Inc (PANW) stock.
Last 1 Years Avg PE 32.09, Fair Value PE 25, Industry Based PE 30, Growth Based PE 27, RCFC Based PE 39.65, ROE Based PE 10, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 25.83. Value-Trades has assined P/E value 25.83. Since an average (Current Year EPS + Next Year EPS) earning per share is $4.03.
The fair value of Palo Alto Networks Inc (PANW) stock should be (25.83 x $4.03) = $104.1.
