Latest Ratios: P/E Ratio 210.7x · EV/EBITDA 143.6x · 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 | $229.7B | $123.1B | $115.0B | $85.6B | $49.2B | $38.5B | $24.8B | $21.4B | $18.2B | $11.9B | $11.4B |
| Enterprise Value | $227.8B | $121.2B | $114.8B | $86.7B | $51.0B | $40.1B | $25.3B | $21.9B | $17.6B | $11.7B | $11.2B |
| P/E Ratio → | 210.65 | 108.50 | 44.61 | 195.28 | — | — | — | — | — | — | — |
| P/S Ratio | 24.91 | 13.35 | 14.32 | 12.41 | 8.94 | 9.04 | 7.28 | 7.38 | 8.00 | 6.78 | 8.27 |
| P/B Ratio | 30.55 | 15.74 | 22.24 | 48.94 | 234.09 | 50.38 | 22.51 | 13.50 | 18.39 | 15.72 | 14.43 |
| P/FCF | 66.20 | 35.49 | 37.07 | 32.52 | 27.43 | 27.74 | 30.19 | 23.16 | 19.65 | 16.93 | 19.46 |
| P/OCF | 61.81 | 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 | 143.58 | 76.41 | 118.66 | 129.49 | 543.64 | — | 932.08 | 219.44 | — | — | — |
| EV / EBIT | 183.25 | 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 | 0.5% | 0.9% | 2.2% | 0.5% | — | — | — | — | — | — | — |
| FCF Yield | 1.5% | 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 |
Platformization margin dilution risk
Based on current market data, PANW trades at a forward P/E of 80.62, suggesting that investors are pricing in significant long-term earnings expansion despite the recent volatility in GAAP profitability observed in the most recent quarterly filings.
The elevated P/S ratio of 22.48 relative to legacy peers like Check Point indicates the market is assigning a 'consolidator' premium to PANW's integrated security platform. This valuation appears to hinge on the assumption that the current platformization strategy will eventually yield superior operating leverage once the initial customer acquisition costs subside.
As reported in recent financial statements, ROIC has fluctuated significantly, dropping to -0.8% in 2026Q3 from a peak of 6.4% in 2025Q4, reflecting the heavy integration costs and goodwill associated with the company's aggressive inorganic growth strategy.
The decline in return on capital suggests that the company is currently prioritizing market share capture over immediate capital efficiency. Investors should monitor whether the integration of recent acquisitions can eventually drive ROIC back toward historical levels as the platform matures and cross-selling synergies materialize.
According to quarterly data, the company's DSO has shown significant variability, reaching 82 days in 2026Q3, which highlights the sensitivity of cash collection to the timing of large-scale enterprise contract renewals and the shift toward multi-year billing structures.
The erratic nature of the cash conversion cycle suggests that PANW's working capital efficiency is heavily influenced by the lumpy recognition of large, multi-year deals. This volatility warrants caution, as it may mask underlying trends in operational efficiency and customer payment behavior.
As indicated by peer comparison data, PANW maintains a unique position between legacy hardware-focused firms like Fortinet and cloud-native players like CrowdStrike, with a P/E multiple that reflects its role as a comprehensive security consolidator rather than a pure-play niche provider.
While PANW's gross margins remain competitive, the company's current operating margin profile appears strained compared to the more mature profitability of Check Point. This gap is likely structural, driven by the aggressive R&D and sales investments required to maintain its platform-wide competitive advantage.
Based on an analysis of accounting nuances, the billings metric is frequently misapplied to PANW, as it fails to account for the strategic shift toward platformization and the resulting volatility in contract duration and payment frequency.
Analysts should prioritize Remaining Performance Obligations (RPO) over billings to better gauge the underlying health of the subscription business. Relying on billings may lead to an inaccurate assessment of growth, as the metric is easily distorted by the company's current incentive-based discounting and deferred payment terms.
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 210.7x. 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 143.6x. 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 210.7x. 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.