Palo Alto Networks Inc (PANW)
Computer Peripheral Equipment, NEC · Computer Peripheral Equipment, NEC · NASDAQ
$374.14
-0.43%
Investingg Score
50.4 / 100
Hold
Business overview
- Gross margin stands at 73.4%.
- Operating margin is reported at 13.5%.
- Free cash flow margin reaches 37.6%.
These margins reflect strong pricing power and efficient cash generation, though operating profitability is lower than gross profitability due to operating expenses.
Financial health
- Free cash flow yield is 1.4% based on current pricing.
- Balance sheet pillar score is registered at 48.
- Financial quality pillar score sits at 58.
These figures indicate moderate financial stability and steady cash generation relative to the company's valuation, though balance sheet metrics carry some baseline uncertainty.
- Gross Margin
- 73.4%
- Operating Margin
- 13.5%
- Current Ratio
- 0.9x
- Debt / Equity
- Data unavailable
- Free Cash Flow (TTM)
- $3.5B
- Interest Coverage
- 414x
Valuation
- Price-to-earnings ratio is 293.61.
- Price-to-sales ratio is 24.12.
- Valuation pillar score is 27.
These high multiples demonstrate that the market has priced in substantial expectations for future performance, creating valuation risk if growth slows.
- P/E (TTM)
- 293.6x
- Forward P/E
- Data unavailable
- Price / Sales
- 24.1x
- EV / EBITDA
- Data unavailable
- FCF Yield
- 1.4%
Key risks
- High price-to-earnings ratio of 293.61 increases vulnerability to valuation contraction.
- Sharp year-over-year earnings per share decline of -78% signals underlying profitability challenges.
- An RSI of 75.02 indicates overbought technical conditions that could precede a pullback.
Market cap $249.9B · data as of 2026-08-18
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Analyze PANW with Investingg AINot investment advice. Investingg AI summarizes public data and AI-generated analysis for informational purposes only.