Latest Ratios: P/E Ratio 234.1x · EV/EBITDA 159.7x · ROE 17.5%. (2010–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $255.3B | $123.1B | $115.0B | $85.6B | $49.2B | $38.5B | $24.8B | $21.4B | $18.2B | $11.9B | $11.4B |
| Enterprise Value | $253.3B | $121.2B | $114.8B | $86.7B | $51.0B | $40.1B | $25.3B | $21.9B | $17.6B | $11.7B | $11.2B |
| P/E Ratio → | 234.11 | 108.50 | 44.61 | 195.28 | — | — | — | — | — | — | — |
| P/S Ratio | 27.68 | 13.35 | 14.32 | 12.41 | 8.94 | 9.04 | 7.28 | 7.38 | 8.00 | 6.78 | 8.27 |
| P/B Ratio | 33.96 | 15.74 | 22.24 | 48.94 | 234.09 | 50.38 | 22.51 | 13.50 | 18.39 | 15.72 | 14.43 |
| P/FCF | 73.57 | 35.49 | 37.07 | 32.52 | 27.43 | 27.74 | 30.19 | 23.16 | 19.65 | 16.93 | 19.46 |
| P/OCF | 68.70 | 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
Enterprise-value multiples — capital-structure-neutral measures of total business value
| 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 | 159.71 | 76.41 | 118.66 | 129.49 | 543.64 | — | 932.08 | 219.44 | — | — | — |
| EV / EBIT | 203.83 | 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 |
Margins and return-on-capital ratios measuring operating efficiency
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% |
| 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% |
Solvency and debt-coverage ratios — lower is generally safer
| 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 | 532.53 | 532.53 | 119.65 | 21.57 | -6.82 | -1.88 | -1.65 | 0.11 | -2.56 | -6.35 | -6.36 |
Net cash position: cash ($2.3B) exceeds total debt ($338M)
Short-term solvency ratios and asset-utilisation metrics
| 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 | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 145.64 | 152.07 | 151.03 | 149.53 | 106.38 | 111.06 | 73.31 | 74.99 | 89.53 | 92.33 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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 | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 0.4% | 0.9% | 2.2% | 0.5% | — | — | — | — | — | — | — |
| FCF Yield | 1.4% | 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 |
Includes 30+ ratios · 16 years · Updated daily
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Quick answers to the most common questions about buying PANW stock.
Palo Alto Networks, Inc.'s current P/E ratio is 234.1x. The historical average is 116.1x. This places it at the 100th percentile of its historical range.
Palo Alto Networks, Inc.'s current EV/EBITDA is 159.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 76.4x.
Palo Alto Networks, Inc.'s return on equity (ROE) is 17.5%. The historical average is -12.8%.
Based on historical data, Palo Alto Networks, Inc. is trading at a P/E of 234.1x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Palo Alto Networks, Inc. has 73.4% gross margin and 13.5% operating margin. Operating margin between 10-20% is typical for established companies.
Palo Alto Networks, Inc.'s Debt/EBITDA ratio is 0.2x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Margin erosion from platformization
Metrics are mathematically derived from official filings.
Premium Pricing Despite Erosion
PANW trades at a significant premium with a forward P/E of 89.32 and EV/EBITDA of 60.00, suggesting the market is pricing in sustained high growth and margin recovery, though current GAAP profitability is deeply negative.
The valuation appears to be decoupled from near-term GAAP earnings, as the 233.71 TTM P/E reflects negligible or negative earnings. The premium over legacy peers like Check Point (14.40 P/E) but discount to pure-play growth names (CrowdStrike, Zscaler) indicates the market views PANW as a hybrid consolidator. This premium is likely contingent on the successful execution of the platformization strategy to drive future margin expansion.
Gross Margin Erosion Drives Strain
Gross margin has compressed sharply from a stable ~74% to 67.6% in the last two quarters, while operating margins have turned negative, indicating the platformization strategy is sacrificing near-term profitability for market share.
The decline in gross margin is structurally significant, moving from the mid-70s to the high-60s, and directly correlates with the strategic shift. This compression, coupled with sustained high SG&A and R&D spend, has resulted in negative operating margins in two of the last three quarters. The core earning power, best viewed through non-GAAP metrics adjusted for SBC, remains under pressure until the scaled platform delivers expected efficiencies.
Capital Returns Decouple from Accounting Losses
Despite recent negative GAAP ROE and ROA, ROIC has remained positive at 0.5% in 2026Q4, suggesting the core operating assets are generating returns while accounting returns are distorted by massive stock-based compensation and goodwill.
The divergence between ROIC and ROE highlights the impact of PANW's equity-heavy, intangible-laden balance sheet. The modest positive ROIC indicates the business can generate returns on invested capital, but the trend is volatile and far below historical levels. The sustainability of returns depends on whether the platformization investment translates into higher asset turnover and operating leverage over the investment cycle.
DSO Volatility Signals Deal Structure Complexity
Days Sales Outstanding has been highly volatile, swinging from 74 to 107 days in 2026, likely reflecting the changing contract structures and payment terms associated with the platformization push.
The erratic DSO trend, rather than a steady improvement, suggests that the shift in sales strategy is altering the cash collection profile. The lack of inventory data (DIO is blank) is expected for a software-centric model, but the DPO trend around 24-33 days indicates standard vendor payment terms. The cash conversion cycle is less meaningful without inventory, but the working capital dynamics appear to be in flux.
Minimal Leverage Amid Liquidity Tightening
The balance sheet shows negligible traditional leverage with a D/E of 0.09 in 2026Q4, but the current ratio has slipped below 1.0 to 0.87, indicating that short-term liquidity is being utilized aggressively to fund the growth strategy.
PANW's leverage profile is conservative in terms of debt, but the falling current ratio is a more pertinent signal. This shift from a ratio above 1.0 to 0.87 suggests current liabilities, likely including deferred revenue and accrued expenses, are growing faster than liquid assets. While the company's cash flow generation appears robust, this metric warrants monitoring to ensure it doesn't signal operational strain from the platformization investments.
ROE's Distraction in an SBC-Heavy Model
The most commonly misapplied ratio is Return on Equity (ROE), which is currently negative and volatile (-1.0% in 2026Q4), failing to reflect the company's cash-generative core due to massive stock-based compensation and goodwill inflating the equity base.
ROE is misleading for PANW because the equity denominator is artificially large and growing due to retained earnings inflated by non-cash SBC add-backs and massive goodwill from acquisitions. This distorts the true return generated on tangible capital. A more appropriate metric is Return on Invested Capital (ROIC), though even this must be interpreted cautiously given the significant intangible asset base. Analysts should focus on cash flow returns and organic growth metrics rather than the volatile and currently negative ROE.