Palo Alto Networks, Inc. (PANW) Stock Analysis — Fair Value, Risk & Moat Rating
NMS · Technology · Software - Infrastructure
Is Palo Alto Networks, Inc. a safe investment right now?
Palo Alto Networks, Inc.'s Altman Z-Score of 6.37 places it in the safe zone. Our fair value estimate is $92.00 (Overvalued). Moat rating: 3.7/5 stars.
Could Palo Alto Networks, Inc. go bankrupt? Altman Z-Score analysis
Z-Score of 6.37 is above 3.0, indicating the company is financially healthy by this metric.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives PANW's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | -0.0197 | 1.2 | -0.02 |
| B · Retained Earnings / Total Assets | RE / TA | 0.1054 | 1.4 | 0.15 |
| C · EBIT / Total Assets | EBIT / TA | 0.0678 | 3.3 | 0.22 |
| D · Market Cap / Total Liabilities | MCap / TL | 9.3868 | 0.6 | 5.63 |
| E · Revenue / Total Assets | Rev / TA | 0.3911 | 1.0 | 0.39 |
How has PANW's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 7.39 | Safe |
| 2023 | 7.31 | Safe |
| 2024 | 6.6 | Safe |
| 2025 | 6.37 | Safe |
Source: Calculated from PANW's latest 10-K filing on SEC EDGAR.
What is Palo Alto Networks, Inc. actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $2.30 | Proprietary blend of reported actuals (2Q actual) + analyst consensus, weighted by α |
| Last Year EPS | $1.60 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $3.69 | 49 analysts consensus |
| Trailing P/E | 101.2x | Current market pricing |
| Fair P/E (β discount) | 40.0x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Accelerating | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $205.96 (49 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does Palo Alto Networks, Inc. have a durable competitive advantage?
Moat rating: 3.7/5.
What makes up PANW's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 4/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 4/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is PANW's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | -4.8% | — |
| 2023 | 15.7% | Rising |
| 2024 | 16.2% | Stable |
| 2025 | 20.4% | Rising |
Source: ROIC calculated from SEC EDGAR filings.
Is Palo Alto Networks, Inc.'s dividend safe?
Palo Alto Networks, Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $9.2B | $8.0B | $5.5B | Rising |
| Net Income | $1.1B | $2.6B | −$0.3B | Rising |
| Free Cash Flow | $3.5B | $3.1B | $1.8B | Rising |
| Gross Margin | 73.4% | 74.4% | 68.8% | Rising |
Recent events that affect our PANW analysis
PANW earnings report scheduled
Upcoming report. Consensus EPS estimate: $0.80. Revenue estimate: $2.94B. Our current Fair Value: $92.00 — a significant beat or miss could shift this estimate.
PANW analyst consensus: 80% bullish (44 of 55 analysts)
11 Strong Buy, 33 Buy, 10 Hold, 1 Sell, 0 Strong Sell. Consensus target: $205.96 (13.7% upside). Compare with our independent Fair Value: $92.00.
PANW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
PANW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
PANW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
PANW filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
PANW beat EPS estimates by 9.9%
Reported EPS: $1.03 vs estimate $0.94. Earnings strength supports our Fair Value of $92.00 (49.2% below current price).
PANW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
PANW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
PANW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
PANW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
PANW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
PANW filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
PANW beat EPS estimates by 4.4%
Reported EPS: $0.93 vs estimate $0.89. Earnings strength supports our Fair Value of $92.00 (49.2% below current price).
PANW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
PANW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
PANW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
PANW filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
PANW beat EPS estimates by 7.3%
Reported EPS: $0.95 vs estimate $0.89. Earnings strength supports our Fair Value of $92.00 (49.2% below current price).
PANW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
PANW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
PANW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
PANW filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
PANW beat EPS estimates by 3.6%
Reported EPS: $0.80 vs estimate $0.77. Earnings strength supports our Fair Value of $92.00 (49.2% below current price).
PANW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
PANW filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
PANW beat EPS estimates by 3.9%
Reported EPS: $0.81 vs estimate $0.78. Earnings strength supports our Fair Value of $92.00 (49.2% below current price).
PANW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
PANW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about Palo Alto Networks, Inc.
What is Palo Alto Networks, Inc. stock price today?
Palo Alto Networks, Inc. (PANW) stock price is $181.20 as of the latest market close, traded on the NASDAQ exchange.
What does Palo Alto Networks, Inc. do?
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.
What is Palo Alto Networks, Inc. market cap?
Palo Alto Networks, Inc. has a market capitalization of $147.86B, classifying it as a large-cap stock in the Technology sector.
What sector and industry is PANW in?
Palo Alto Networks, Inc. operates in the Technology sector, specifically within the Software - Infrastructure industry. It trades on the NASDAQ under the ticker symbol PANW.
Is PANW stock overvalued or undervalued?
Based on our valuation model, Palo Alto Networks, Inc. trades 97.0% above our fair value estimate — potentially overvalued.
- FairValueLabs Fair Value: $92.00
- Current Price: $181.20
- Valuation Zone: Overvalued
What is PANW stock forecast and analyst target price?
Based on 49 Wall Street analysts, the consensus price target for Palo Alto Networks, Inc. is $205.96, implying upside of 13.7% from the current price.
- Analyst High Target: $265.00
- Analyst Low Target: $114.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Palo Alto Networks, Inc. revenue and earnings growing?
Here are the analyst consensus growth estimates for Palo Alto Networks, Inc.:
- Revenue growth (current year est.): 22.4%
- EPS growth (current year est.): 10.5%
- Revenue growth (next year est.): 20.0%
- EPS growth (next year est.): 16.7%
What are Palo Alto Networks, Inc.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $9.2B | Rising |
| Net Income | $1.1B | Rising |
| Free Cash Flow | $3.5B | Rising |
| Gross Margin | 73.4% | Rising |
What is PANW's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 101.2x
- Forward P/E (next 12 months est.): 45.6x
- FairValueLabs Fair P/E: 40.0x
How volatile is PANW stock?
Palo Alto Networks, Inc. has a beta of 0.77, meaning it is less volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Palo Alto Networks, Inc. have?
Palo Alto Networks, Inc.'s balance sheet shows:
- Total Cash: $4.54B
- Total Debt: $459.0M
- Net Cash Position: $4.08B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is Palo Alto Networks, Inc.'s free cash flow?
Palo Alto Networks, Inc. generated $2.86B in trailing twelve-month free cash flow (from $3.97B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does Palo Alto Networks, Inc. pay a dividend?
Palo Alto Networks, Inc. does not currently pay a regular dividend to shareholders. The company may be reinvesting all profits back into growth, or it may have suspended its dividend.
Is Palo Alto Networks, Inc. at risk of going bankrupt?
Palo Alto Networks, Inc.'s Altman Z-Score is 6.37, placing it in the safe zone (above 3.0) — bankruptcy risk is low. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does Palo Alto Networks, Inc. have a durable competitive advantage?
Palo Alto Networks, Inc. scores 3.7/5 stars (Solid moat · eroding) in our moat analysis:
- ROIC Stability: 4/5
- Gross Margin Trend: 4/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is PANW's return on equity (ROE)?
Palo Alto Networks, Inc.'s return on equity is 16.3%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy PANW stock?
PANW shares can be purchased through any brokerage account that provides access to the NASDAQ. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol PANW
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is PANW a value stock or speculative?
FairValueLabs classifies Palo Alto Networks, Inc. as Value-Speculation. It has some value characteristics but carries elevated risk factors that make it speculative. Extra due diligence is recommended.
Who is the CEO of Palo Alto Networks, Inc.?
The current CEO of Palo Alto Networks, Inc. is Mr. Nikesh Arora C.F.A..
What is PANW's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $1.79
- Forward EPS (next 12 months est.): $3.97
- Analyst consensus EPS (this year): $3.69
- Analyst consensus EPS (next year): $2.30
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FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
PANW analysis methodology: How we calculate fair value, Z-Scores, and moat ratings