Palo Alto Networks, Inc. Common Stock (PANW) Valuation
Historical valuation analysis based on 1279 data points (2021-09-14 to 2026-10-16)
Palo Alto Networks is a platform-based cybersecurity vendor with product offerings covering network security, cloud security, and security operations. The California-based firm has more than 80,000...
Palo Alto Networks, Inc. Common Stock (PANW) currently trades at a P/E ratio of 331.94 (historical range: 40.70–1964.68, median: 115.67), placing it at the 77th percentile — above its historical average, P/S ratio of 26.38 (range: 6.97–32.39, 96th percentile — expensive relative to its history), EV/EBITDA of 273.72 (range: 69.23–2949.63, 75th percentile).
Over the historical period (2021-09-14 to 2026-10-16), Palo Alto Networks, Inc. Common Stock's P/E ratio has contracted by 79% over the observed period (from an average of 583.8 to 124.0).
Palo Alto Networks, Inc. Common Stock trades well above its own historical valuation range across most metrics.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 331.94 | 115.67 | 77th | above its historical average |
| P/S Ratio | 26.38 | 13.27 | 96th | expensive relative to its history |
| EV/EBITDA | 273.72 | 170.08 | 75th | above its historical average |
| FCF Yield | 1.36% | 2.81% | 3th | expensive relative to its history |
Palo Alto Networks, Inc. Common Stock (PANW) Valuation & P/E History
Palo Alto Networks, Inc. Common Stock (PANW) is a US-listed stock operating in the Technology sector, specifically the Computer Peripheral Equipment, Nec industry currently trading at $340.10 with a market capitalization of $278.2 billion. This page provides historical valuation analysis for PANW based on 1279 data points covering 2021-09-14 to 2026-10-16. The P/E ratio of 331.94 is above the historical median of 115.67, placing PANW at the 77th percentile of its valuation range. The P/S ratio of 26.38 compares to a median of 13.27.
PANW Valuation Metrics & Historical Range
The valuation table above shows Palo Alto Networks, Inc. Common Stock's current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether PANW is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests PANW is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for Palo Alto Networks, Inc. Common Stock.
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is PANW Overvalued or Undervalued?
Palo Alto Networks, Inc. Common Stock trades well above its own historical valuation range across most metrics. The overall valuation percentile of 83 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive PANW is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full PANW analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.PANW trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.