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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Palo Alto Networks Inc. To summarize, we found that Palo Alto Networks Inc ranked in the 48th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 8% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for PANW, they are:
Palo Alto Networks Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 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 -1.61. This coverage rate is greater than that of merely 18.31% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 10. This value is greater than 81.98% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Palo Alto Networks Inc? See CYBR, IBM, MCHP, MSI, and QLYS.
Over the past year, there has been plenty of talk that more modern, cloud-ready security platforms like Zscaler (ZS) would eat Palo Alto Networks' (PANW) lunch. Palo Alto Networks, which has for years branded itself as the "next-gen firewall," has come under fire for no longer being the hottest thing...
Gary Alexander on Seeking Alpha | September 21, 2020
SANTA CLARA, Calif., Sept. 16, 2020 /PRNewswire/ -- As SD-WAN has become the primary WAN architecture, organizations are demanding solutions that deliver a better user experience while being simpler to deploy and manage. Palo Alto Networks Next-Generation SD-WAN takes an entirely new…
Palo Alto Networks, Inc. (PANW) Deutsche Bank 2020 Virtual Technology Conference September 14, 2020, 06:00 PM ET Company Participants Nikesh Arora - Chairman and Chief Executive Officer Conference Call Participants Patrick Colville - Deutsche Bank Presentation Patrick Colville Hello, everyone, I appreciate you joining us today for this session with...
SA Transcripts on Seeking Alpha | September 15, 2020