Palo Alto Networks, Inc. (PANW) Financial Ratios
16 years of historical data (2010–2025) · Technology · Software - Infrastructure
EV/EBITDA
↓
80.14
↓-63% vs avg
5yr avg: 217.05
30Y Low76.4·High76.4
P/FCF
↑
37.20
+16% vs avg
5yr avg: 32.05
30Y Low16.9·High114.9
P/B Ratio
↓
16.64
↓-78% vs avg
5yr avg: 74.28
30Y Low12.3·High50.4
ROE
↑
17.5%
↓+206% vs avg
5yr avg: 5.7%
30Y Low-61%·High75%
Debt/EBITDA
↓
0.21
↓-98% vs avg
5yr avg: 11.78
30Y Low0.2·High42.1
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
PANW Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Palo Alto Networks, Inc. trades at 114.7x earnings, roughly in line with its 5-year average of 116.1x, sitting at the 67th percentile of its historical range. Compared to the Technology sector median P/E of 27.2x, the stock trades at a premium of 322%. On a free-cash-flow basis, the stock trades at 37.2x P/FCF, 16% above the 5-year average of 32.0x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $129.1B | $123.1B | $115.0B | $85.6B | $49.2B | $38.5B | $24.8B | $21.4B | $18.2B | $11.9B | $11.4B |
| Enterprise Value | $127.1B | $121.2B | $114.8B | $86.7B | $51.0B | $40.1B | $25.3B | $21.9B | $17.6B | $11.7B | $11.2B |
| P/E Ratio → | 114.74 | 108.50 | 44.61 | 195.28 | — | — | — | — | — | — | — |
| P/S Ratio | 14.00 | 13.35 | 14.32 | 12.41 | 8.94 | 9.04 | 7.28 | 7.38 | 8.00 | 6.78 | 8.27 |
| P/B Ratio | 16.64 | 15.74 | 22.24 | 48.94 | 234.09 | 50.38 | 22.51 | 13.50 | 18.39 | 15.72 | 14.43 |
| P/FCF | 37.20 | 35.49 | 37.07 | 32.52 | 27.43 | 27.74 | 30.19 | 23.16 | 19.65 | 16.93 | 19.46 |
| P/OCF | 34.73 | 33.14 | 35.29 | 30.81 | 24.77 | 25.60 | 23.94 | 20.28 | 17.53 | 13.74 | 17.32 |
P/E links to full P/E history page with 30-year chart
PANW EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Palo Alto Networks, Inc.'s enterprise value stands at 80.1x EBITDA, 63% below its 5-year average of 217.1x. The Technology sector median is 17.3x, placing the stock at a 363% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 13.14 | 14.30 | 12.58 | 9.27 | 9.43 | 7.41 | 7.55 | 7.74 | 6.65 | 8.10 |
| EV / EBITDA | 80.14 | 76.41 | 118.66 | 129.49 | 543.64 | — | 932.08 | 219.44 | — | — | — |
| EV / EBIT | 102.28 | 75.87 | 115.56 | 147.74 | — | — | — | 2352.53 | — | — | — |
| EV / FCF | — | 34.93 | 37.01 | 32.95 | 28.46 | 28.94 | 30.76 | 23.67 | 19.02 | 16.62 | 19.08 |
PANW Profitability
Margins and return-on-capital ratios measuring operating efficiency
Palo Alto Networks, Inc. earns an operating margin of 13.5%. Operating margins have expanded from 5.6% to 13.5% over the past 3 years, signaling improving operational efficiency. ROE of 17.5% indicates solid capital efficiency. ROIC of 17.1% represents solid returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 73.4% | 73.4% | 74.3% | 72.3% | 68.8% | 70.0% | 70.7% | 72.1% | 71.6% | 72.9% | 73.2% |
| Operating Margin | 13.5% | 13.5% | 8.5% | 5.6% | -3.4% | -7.1% | -5.3% | -1.9% | -4.6% | -9.4% | -11.4% |
| Net Profit Margin | 12.3% | 12.3% | 32.1% | 6.4% | -4.9% | -11.7% | -7.8% | -2.8% | -6.5% | -12.3% | -16.4% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 17.5% | 17.5% | 74.5% | 44.9% | -54.8% | -53.5% | -19.9% | -6.4% | -16.9% | -28.0% | -33.1% |
| ROA | 5.2% | 5.2% | 14.9% | 3.3% | -2.4% | -5.2% | -3.4% | -1.3% | -3.2% | -6.9% | -9.4% |
| ROIC | 17.1% | 17.1% | 13.0% | 11.8% | -6.3% | -11.4% | -7.4% | -3.3% | -16.6% | -22.5% | -18.9% |
| ROCE | 8.9% | 8.9% | 7.2% | 7.2% | -4.2% | -5.3% | -3.3% | -1.3% | -3.5% | -7.8% | -10.7% |
PANW Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Palo Alto Networks, Inc. carries a Debt/EBITDA ratio of 0.2x, which is very conservative (93% below the sector average of 2.9x). The company holds a net cash position — cash of $2.3B exceeds total debt of $338M, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns. Interest coverage of 414.3x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.04 | 0.04 | 0.26 | 1.30 | 18.82 | 4.64 | 3.10 | 0.90 | 1.94 | 0.69 | 0.64 |
| Debt / EBITDA | 0.21 | 0.21 | 1.39 | 3.39 | 42.14 | — | 126.23 | 14.34 | — | — | — |
| Net Debt / Equity | — | -0.25 | -0.04 | 0.65 | 8.74 | 2.18 | 0.42 | 0.30 | -0.59 | -0.29 | -0.29 |
| Net Debt / EBITDA | -1.22 | -1.22 | -0.20 | 1.70 | 19.56 | — | 17.07 | 4.70 | — | — | — |
| Debt / FCF | — | -0.56 | -0.06 | 0.43 | 1.02 | 1.20 | 0.56 | 0.51 | -0.63 | -0.31 | -0.39 |
| Interest Coverage | 414.30 | 414.30 | 82.40 | 14.24 | -6.89 | -1.86 | -2.02 | -0.64 | -3.52 | -6.77 | -6.72 |
Net cash position: cash ($2.3B) exceeds total debt ($338M)
PANW Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.89x is below 1.0, meaning current liabilities exceed current assets — though the company's $2.3B cash position helps mitigate short-term liquidity concerns. The current ratio has improved from 0.78x to 0.89x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.89 | 0.89 | 0.89 | 0.78 | 0.77 | 0.91 | 1.91 | 1.78 | 1.93 | 1.65 | 2.09 |
| Quick Ratio | 0.89 | 0.89 | 0.89 | 0.78 | 0.77 | 0.91 | 1.91 | 1.78 | 1.93 | 1.65 | 2.09 |
| Cash Ratio | 0.36 | 0.36 | 0.34 | 0.31 | 0.44 | 0.57 | 1.39 | 1.37 | 1.59 | 1.14 | 1.52 |
| Asset Turnover | — | 0.39 | 0.40 | 0.48 | 0.45 | 0.42 | 0.38 | 0.44 | 0.39 | 0.51 | 0.48 |
| Inventory Turnover | 7.21 | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 145.64 | 152.07 | 151.03 | 149.53 | 106.38 | 111.06 | 73.31 | 74.99 | 89.53 | 92.33 |
PANW Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Palo Alto Networks, Inc. does not currently pay a dividend and has no material buyback yield, reinvesting earnings back into the business. The earnings yield of 0.9% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 0.9% | 0.9% | 2.2% | 0.5% | — | — | — | — | — | — | — |
| FCF Yield | 2.7% | 2.8% | 2.7% | 3.1% | 3.6% | 3.6% | 3.3% | 4.3% | 5.1% | 5.9% | 5.1% |
| Buyback Yield | 0.0% | 0.0% | 0.5% | 0.3% | 1.8% | 3.1% | 4.8% | 1.5% | 1.4% | 3.4% | 0.0% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.5% | 0.3% | 1.8% | 3.1% | 4.8% | 1.5% | 1.4% | 3.4% | 0.0% |
| Shares Outstanding | — | $709M | $708M | $685M | $591M | $578M | $581M | $567M | $550M | $544M | $523M |
Peer Comparison
Compare PANW with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 PANWYou | $129B | 114.7 | 80.1 | 37.2 | 73.4% | 13.5% | 17.5% | 17.1% | 0.2 |
 FTNT | $67B | 37.0 | 29.3 | 30.1 | 80.8% | 30.6% | 135.7% | — | 0.4 |
 CRWD | $119B | -720.1 | 952.1 | 90.5 | 74.6% | -3.4% | -4.2% | -193.7% | 6.8 |
 ZS | $22B | -514.2 | — | 30.7 | 76.9% | -4.8% | -2.7% | -8.4% | — |
 CHKP | $12B | 11.9 | 13.1 | 9.9 | 85.4% | 30.5% | 37.3% | 23.2% | 2.1 |
 CYBR | $21B | -139.5 | 908.2 | 79.6 | 74.3% | -7.7% | -6.2% | -3.2% | 52.3 |
 S | $5B | -11.2 | — | 63.6 | 74.1% | -32.1% | -29.0% | -17.4% | — |
 CSCO | $363B | 35.9 | 26.2 | 27.3 | 64.9% | 20.8% | 22.1% | 13.0% | 2.0 |
 FFIV | $19B | 28.9 | 21.5 | 21.3 | 81.4% | 24.8% | 20.6% | 21.8% | 0.6 |
 NTCT | $3B | -7.0 | — | 12.2 | 78.3% | -44.7% | -21.3% | -19.3% | — |
 QLYS | $3B | 16.7 | 13.1 | 10.6 | 82.8% | 33.2% | 38.2% | 47.5% | 0.4 |
| Technology Median | — | 27.2 | 17.3 | 19.8 | 48.9% | -0.6% | 2.5% | 3.0% | 2.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonPANW — Frequently Asked Questions
Quick answers to the most common questions about buying PANW stock.
What is Palo Alto Networks, Inc.'s P/E ratio?
Palo Alto Networks, Inc.'s current P/E ratio is 114.7x. The historical average is 116.1x. This places it at the 67th percentile of its historical range.
What is Palo Alto Networks, Inc.'s EV/EBITDA?
Palo Alto Networks, Inc.'s current EV/EBITDA is 80.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 76.4x.
What is Palo Alto Networks, Inc.'s ROE?
Palo Alto Networks, Inc.'s return on equity (ROE) is 17.5%. The historical average is -12.8%.
Is PANW stock overvalued?
Based on historical data, Palo Alto Networks, Inc. is trading at a P/E of 114.7x. This is at the 67th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What are Palo Alto Networks, Inc.'s profit margins?
Palo Alto Networks, Inc. has 73.4% gross margin and 13.5% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Palo Alto Networks, Inc. have?
Palo Alto Networks, Inc.'s Debt/EBITDA ratio is 0.2x, indicating low leverage. A ratio below 2x is generally considered financially healthy.