Palo Alto Networks Inc (PANW) fair value: what the stock is really worth
As of Sep 24, 2026: fair value of Palo Alto Networks Inc $115, price $390, upside -70.6%, quality 57 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 23, 2026.
How to read this chart
60‑month range $60.39 – $396.00 · fair‑value band $80.16 – $148.86 · the $389.92 price screens above the $114.50 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 23, 2026.
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Palo Alto Networks, Inc. provides cybersecurity solutions in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. It offers Prisma Access, a secure access service edge solution; Strata Cloud Manager, a network security management solution; and Prisma AIRS to protect customers' entire AI ecosystem.
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Palo Alto Networks, Inc. provides cybersecurity solutions in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. It offers Prisma Access, a secure access service edge solution; Strata Cloud Manager, a network security management solution; and Prisma AIRS to protect customers' entire AI ecosystem. It provides a comprehensive cloud native application protection platform; and Code to Cloud platform, as well as offers VM-Series and CN-Series virtual firewalls for inline network security on multi- and hybrid-cloud environments. It provides security operation solutions through the Cortex platform that includes Cortex XSIAM, an AI-driven security operations platform; Cortex XDR to prevent, detect, and respond to cybersecurity attacks; and Cortex XSOAR for security orchestration, automation, and response; and Cortex Xpanse for attack surface management, as well as offers threat intelligence and advisory services under the Unit 42 name. It provides subscription services covering the areas of threat prevention, malware and persistent threat, URL filtering, laptop and mobile device protection, DNS security, Internet of Things security, SaaS security API, and SaaS security inline; and threat intelligence, data loss prevention, services to resolve network disruptions, and sensitive data protection. It offers professional services, including architecture design and planning, implementation, configuration, and firewall migration; education services, such as certifications, as well as online and in-classroom training; and support services. It sells its products and services through its channel partners, as well as directly to enterprises, service providers, and government entities operating in various industries, including education, energy, financial services, government entities, healthcare, Internet and media, manufacturing, public sector, and telecommunications. The company was incorporated in 2005 and is headquartered in Santa Clara, California.
Stock analysis
Palo Alto Networks Inc (PANW) currently trades at $389.92, while our model-based Fair Value estimate is $114.50, implying the stock looks roughly 240.6% overvalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $79.21 per share, and 0 of the 24 models we run sit above the $389.92 price.
Bear case: the Economic Profit group reads lowest at $12.82, and 24 of the 24 models stay below the price. Evidence for this calculation is medium.
Scenario range: $80.16 (bear) to $148.86 (bull), the price of $389.92 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 57/100 (solid quality), in the Technology sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Palo Alto Networks Inc reported revenue of $9.2B in FY2025 versus $4.3B in FY2021, a compound +21.3%/yr. Reported net income was $1.1B in FY2025.
Key figures
Market cap $277B · P/E ratio 339.1 · P/S ratio 41.7 · EPS (TTM) $1.15 · Net margin 12.3% · Return on equity 4.8% · Return on assets (EBIT) 1.4% · Operating margin −2.5%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 58 out of 100 (medium confidence).
What moves the price
The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat.
The share trades about 2% below its 52-week high and 175% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Technology peers we cover trades at −17% fair-value upside, at −71%, PANW screens richer than that median.
Fair Value models
The price assumes far more growth than our models allow for, so the models scatter widely ($6.43 to $139.45). Read the Fair Value as a cautious anchor, not a price target; the Growth Forecast section shows what the price assumes.
Bear $80.16Fair Value $114.50Bull $148.86
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 12 months old). Earnings retained since then ($1.15 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+14.9%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+18.8%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+22.0%
Start year 2020 (pandemic). Over 10 years: +25.8% a year
Revenue growth 16 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+50.5%
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What shareholders gained per year (last 3 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 3 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+44.9%
Earnings growth per share plus dividend.
Earnings per share, growth per year+44.9%
Dividend (yield on the price)0.0%
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.−5% → 14%
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+32.2%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+19.3%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +29.1% a year for the price and +16.5% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (100 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Negative
Recent news coverage is more negative than average.
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Software - Infrastructure · 383 stocks
Beats the industry median on 5/13 measures
Overall it trails its industry peers.
Valuation
Quality Score57 · Above median
Fair Value upside−71% · Bottom 25%
Profitability
Return on equity (TTM)5% · Above median
Return on assets2% · Above median
Net margin (TTM)8% · Above median
Operating margin (TTM)−2% · Below median
Growth and dividend
Revenue growth31% · Top 25%
Balance sheet
Debt / equity0.21× · Above median
Valuation Multiplesvs Software - Infrastructure median · lower = cheaper
P/E (TTM)339.1× · Priciest 25%
P/B35.35× · Priciest 25%
P/S (TTM)26.08× · Priciest 25%
P/FCF79.7× · Priciest 25%
PEG3.97× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 15
FUTURE (revenue growth)100· sector 48
PAST (return on equity)19· sector 18
HEALTH (low debt)89· sector 97
DIVIDEND (yield)0· sector 33
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is Palo Alto Networks Inc (PANW) overvalued or undervalued?
As of Sep 23, 2026, our model estimates a fair value of $114.50 versus a price of $389.92, about −71% upside (overvalued).
What is the fair value of PANW?
Our model-based fair value for Palo Alto Networks Inc is $114.50 (as of Sep 23, 2026), built from audited fundamentals. The current price: $389.92.
What is the quality score of PANW?
Palo Alto Networks Inc has a Quality Score of 57/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Palo Alto Networks Inc (PANW)?
Our model-based price target is the fair value of $114.50 (as of Sep 23, 2026) from 24 valuation models. Cautious scenario $80.16, optimistic scenario $148.86. It is a calculation from audited fundamentals, not an analyst target.
What is the Palo Alto Networks Inc stock forecast for 2026?
Our models put fair value at $114.50, about −71% upside versus a price of $389.92 (overvalued). Cautious scenario $80.16, optimistic scenario $148.86. The calculation is refreshed regularly with new filings.
What is the revenue of Palo Alto Networks Inc (PANW)?
Palo Alto Networks Inc reported trailing-twelve-month revenue of about $10.6B (latest available figure, as of Sep 23, 2026).
What growth is priced into Palo Alto Networks Inc (PANW)?
For today's price to be fair in a discounted-cash-flow model, Palo Alto Networks Inc would have to grow free cash flow by +32.2 % per year for five years (discount rate 8.5 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +22.0 % per year. As of Sep 23, 2026.
What discount rate (WACC) does the fair value of PANW use?
Our models discount Palo Alto Networks Inc at 8.5 %: a base by market capitalisation (mega), damped by beta 0.91, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Palo Alto Networks Inc that is +32.2 % per year a year over ten years, using the same discount rate (8.5 %) and the same formula as our fair value.
How much growth has Palo Alto Networks Inc (PANW) delivered so far?
Over the past 5 years revenue at Palo Alto Networks Inc grew +22.0 % a year. The price currently implies +32.2 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Palo Alto Networks Inc (PANW) growing?
The median revenue growth in the sector is +8.2 % a year. That is the yardstick for the growth priced into Palo Alto Networks Inc (+32.2 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Palo Alto Networks Inc (PANW)?
The free-cash-flow yield on the price is 1.25 %: that much free cash flow Palo Alto Networks Inc produces per unit of market value. When it exceeds the discount rate of our models (8.5 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Palo Alto Networks Inc (PANW)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Palo Alto Networks Inc it is $114.50 per share (as of Sep 23, 2026), against a price of $389.92. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is Palo Alto Networks Inc stock overvalued or undervalued in 2026?
As of Sep 23, 2026, PANW trades above its calculated fair value: price $389.92, fair value $114.50, a gap of about −71% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of PANW?
No. The price is what the market pays today ($389.92); the fair value is what the company's own numbers justify ($114.50). For Palo Alto Networks Inc the two are $275.42 per share apart. That gap is exactly why we show both numbers side by side.
How much is Palo Alto Networks Inc worth?
The market values Palo Alto Networks Inc at about $277B (market capitalisation, as of Sep 23, 2026). Per share that is $389.92; our models calculate a fair value of $114.50 per share.
What do the bullish and bearish scenarios say about PANW?
Our models span a range for Palo Alto Networks Inc: cautious scenario $80.16, base $114.50, optimistic $148.86 per share (as of Sep 23, 2026, price $389.92). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of PANW?
Palo Alto Networks Inc trades at a price-to-earnings ratio of 339.1 (as of Sep 23, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $114.50 is built from several models across several years. Excluding one-off items of fiscal year 2025 it is 134.5 (reported for FY2025: 243.7). Other multiples: PEG 4.0, P/B 35.4, P/S 26.1.
What is the PEG ratio of PANW?
The PEG ratio of Palo Alto Networks Inc is 3.97 (P/E divided by earnings growth, as of Sep 23, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Palo Alto Networks Inc (PANW)?
Balance-sheet figures for Palo Alto Networks Inc (as of Sep 23, 2026): return on equity 4.8%, debt of 0.21 per unit of equity. They feed the Quality Score of 57/100, which measures business quality independently of the share price.
How far is PANW from its 52-week high?
Palo Alto Networks Inc trades at $389.92, about 2% below its 52-week high of $396.00 and 175% above the low of $141.67 (as of Sep 24, 2026). Distance from the high says nothing about value: that is what the fair value of $114.50 is for.
Which stocks are comparable to Palo Alto Networks Inc?
From the same area (Technology) we also value Microsoft Corporation, Palantir Technologies Inc, Oracle Corporation, CrowdStrike Holdings, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Palo Alto Networks Inc stock attractive at the current price?
The data as of Sep 23, 2026: price $389.92, calculated fair value $114.50 (−71%), Quality Score 57/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of PANW calculated?
We run Palo Alto Networks Inc through 24 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $114.50, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.0 % above its aggregate fair value. Palo Alto Networks Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Palo Alto Networks Inc (PANW)?
The closing price on Sep 24, 2026 was $389.92. Our model-based fair value is $114.50, about −71% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Palo Alto Networks Inc right now?
The price sits above even our optimistic bull case ($148.86). The favourable scenario is already priced in. Solid but not exceptional quality (57/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range ($80.16 to $148.86) leaves room in how you read the outcome.
Key figures of Palo Alto Networks Inc
How large is the market capitalisation of Palo Alto Networks Inc (PANW)?
The market capitalisation of Palo Alto Networks Inc is $277B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Palo Alto Networks Inc (PANW)?
The price-to-sales ratio of Palo Alto Networks Inc is 41.7 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Palo Alto Networks Inc (PANW)?
Earnings per share at Palo Alto Networks Inc are $1.15 (price ÷ EPS = P/E 339.1). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Palo Alto Networks Inc (PANW)?
The net margin of Palo Alto Networks Inc is 12.3% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Palo Alto Networks Inc (PANW)?
The return on equity (ROE) of Palo Alto Networks Inc is 4.8% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Palo Alto Networks Inc (PANW)?
On an EBIT basis the return on assets of Palo Alto Networks Inc is 1.4% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Palo Alto Networks Inc (PANW)?
The operating margin of Palo Alto Networks Inc is −2.5% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Palo Alto Networks Inc (PANW)?
Revenue at Palo Alto Networks Inc is growing +31.1% versus a year earlier (3y avg +18.8%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Palo Alto Networks Inc (PANW)?
Earnings per share at Palo Alto Networks Inc are growing +60.5% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Palo Alto Networks Inc (PANW) hold?
Palo Alto Networks Inc holds more cash than debt, $1.9B net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Some data
Sep 23, 2026