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:
Below please find a table outlining a discounted cash flow forecast for PANW, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Palo Alto Networks Inc ranked in the 77th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 451.5%. As for the metrics that stood out in our discounted cash flow analysis of Palo Alto Networks Inc, consider:
The company's debt burden, as measured by earnings divided by interest payments, is -0.92 -- which is good for besting just 18.19% of its peer stocks (US stocks in the Technology sector with positive cash flow).
The business' balance sheet reveals debt to be 10% of the company's capital (with equity being the remaining amount). Approximately only 20.59% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
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.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as PANW, try COUP, ENPH, CIEN, TKAT, and NPTN.