Palo Alto Networks provides enterprise security platform to enterprises, service providers, and government entities worldwide. Its platform includes Next-Generation Firewall that delivers application, user, and content visibility and control, as well as protection against network-based cyber threats, and Threat Intelligence Cloud that offers central intelligence capabilities, as well as automated delivery of preventative measures against cyber attacks. The company was founded in 2005 and is based in Santa Clara, California.
PANW Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Palo Alto Networks Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Palo Alto Networks Inc ranked in the 53th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of Palo Alto Networks Inc, consider:
As a business, PANW is generating more cash flow than 79.86% of positive cash flow stocks in the Technology.
Palo Alto Networks Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Palo Alto Networks Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -1.55. This coverage rate is greater than that of merely 17.43% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ACLS, COUP, NOW, SCKT, and CPSI can be thought of as valuation peers to PANW, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
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