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Palo Alto Networks, Inc. PANW

Technology · Software - Infrastructure · United States · S&P 500

54
Profitability
9
Growth
100
Valuation
6
Financial strength
57
Momentum
100

Based on the available data, Palo Alto Networks, Inc. gets an algorithmic score of 54/100. It trades at 388.41 $, with a bullish technical trend (RSI 58.2) and 47.7% annual volatility.

Updated: 2026-09-30

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Strengths

  • Sustained revenue growth (18.5% compound annual).
  • Low-debt balance sheet.

Weaknesses

  • Low ROE (1.7%).
  • Thin net margin (2.7%): vulnerable to costs.
  • Demanding valuation (P/E 79.6): the market prices in a lot of growth.

Fundamentals

P/E995.92
Forward P/E79.61
PEG2.01
P/B11.51
EV/EBITDA203.34
P/S27.68
ROE %1.74
ROA %1.40
Gross margin %70.38
Operating margin %5.40
Net margin %2.67
Revenue growth % (y/y)34.50
Revenue CAGR %18.54
Earnings CAGR %-11.29
Debt/Equity %9.34
Current ratio0.87
FCF yield %1.29
Dividend yield %0.00
Payout %0.00

Returns

1 month+4.5 %
3 months+13.9 %
6 months+151.6 %
YTD+116.5 %
1 year+91.9 %
3 years+239.9 %
5 years+392.7 %

Risk

1-year volatility47.7 %
Beta0.94
5-year max drawdown-36.0 %
Sharpe 1A1.52

Macroeconomic context

Highly sensitive to interest rates (valued on future cash flows): rate cuts and falling bond yields help it. It depends on the corporate investment cycle (AI/cloud capex), the semiconductor supply chain (Taiwan/China) and the dollar (foreign revenue). As a US company, its valuation depends on the Fed, 10-year Treasury yields and the US earnings cycle.

How the score is calculated

The score combines profitability (ROE, ROA, net margin), growth (revenue and earnings), valuation (P/E, EV/EBITDA, free cash flow), financial strength (debt and liquidity; not applied to banks and insurers) and momentum (6 and 12-month returns and trend). It is an educational quantitative filter, not a buy or sell recommendation.

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