---
title: Palo Alto Networks (PANW) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/panw
ticker: PANW
as_of: 2026-10-17
sector: Technology
industry: Software - Infrastructure
---
# Palo Alto Networks (PANW)

Palo Alto Networks (PANW) closed at $342.00 on Oct 16, 2026, overvalued by 972% vs its model value of $31.89 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $342.00 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $31.89 |
| Price vs model | overvalued by 972% vs model |
| Range of that model | $20.11 – $78.93 |
| Market value | $279.8B |
| P/E (fiscal 2026) | 855.0 |
| Net margin (fiscal 2026) | 2.7% |
| Free cash flow (fiscal 2026) | $4.1B |
| Dividend yield (trailing twelve months) | 0.00% |
| Beta | 0.93 |
| Cost of capital (WACC) | 9.01% |
| Business classification | High Growth (Moderate growth (~20% recent), Thin margins (2.7% net margin), Highly cyclical earnings) |

## On the stock lists

| List | Place | Figure | Page |
| --- | ---: | ---: | --- |
| Largest companies | #42 | $279.8B | https://sweetvaluelab.com/lists/largest-companies |
| Best performing this year | #20 | +85.7% | https://sweetvaluelab.com/lists/best-performing-this-year |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $31.89 | $20.11 | $78.93 |
| DCF · Perpetuity growth · 10y | cross check | $37.36 | $23.69 | $91.59 |
| DCF · EBITDA exit · 5y | cross check | $70.79 | $54.71 | $89.60 |
| DCF · EBITDA exit · 10y | cross check | $74.19 | $53.77 | $101.08 |
| P/E · peers | cross check | $50.18 | $33.26 | $116.55 |
| P/E · own history | cross check | $50.78 | $21.57 | $88.42 |
| PEG | sanity check | $104.64 | $104.64 | $104.64 |
| EV/EBITDA · peers | cross check | $55.47 | $35.39 | $118.85 |
| EV/Revenue · peers | cross check | $141.34 | $111.68 | $288.15 |
| Earnings power value | cross check | $0.00 | $0.00 | $0.00 |

## Insider activity (SEC Form 4)

Past 90 days: 0 open-market buys ($0) and 28 open-market sales ($20.8M); 10b5-1 plan sales included.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Oct 12, 2026 | Arora Nikesh | Chief Executive Officer | Other | 500,000 | — |
| Oct 9, 2026 | Bawa Aparna | Director | Open-market sell | 170 | $69,700 |
| Oct 9, 2026 | Bawa Aparna | Director | Open-market sell | 80 | $33,370 |
| Oct 8, 2026 | Klarich Lee | EVP Chief Product & Tech Ofcr | Bona fide gift | 60,000 | $0 |
| Oct 1, 2026 | Paul Josh D. | Chief Accounting Officer | Tax withholding (10b5-1 plan) | 1,308 | $519,681.5 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Sep 10, 2026 | 10-K | Annual report | https://www.sec.gov/Archives/edgar/data/1327567/000132756726000023/panw-20260731.htm |
| Sep 10, 2026 | S-8 | Employee stock plan registration | https://www.sec.gov/Archives/edgar/data/1327567/000119312526387982/d175159ds8.htm |
| Sep 1, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1327567/000132756726000019/panw-20260901.htm |
| Aug 21, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers; 5.03 Amendment to Articles/Bylaws; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1327567/000119312526361122/d180372d8k.htm |
| Jun 3, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/1327567/000132756726000015/panw-20260430.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Mairs & Power | 2026-06-30 | 599,841 | $204.6M |
| Druckenmiller | 2026-06-30 | 116,650 | $39.8M |
| Lee Ainslie | 2026-06-30 | 3,655 | $1.2M |

3 tracked managers in all.

## About

Palo Alto Networks, Inc. is a global leader in providing advanced cybersecurity solutions. The company's core product line includes both hardware and software-based firewalls. It also offers Panorama, a sophisticated security management platform designed for centralized control of these firewall deployments, whether they are physical appliances, virtual instances, or situated in public or private cloud environments. Additionally, the firm provides virtual system upgrades to enhance the capacity of its physical firewall units. Complementing its core products, Palo Alto Networks delivers an extensive range of subscription services. These encompass robust threat prevention, protection against malware and advanced persistent threats, URL filtering, and security for both laptop and mobile devices. Further specialized subscriptions include DNS security, Internet of Things (IoT) security, SaaS…

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Source: https://sweetvaluelab.com/stocks/panw (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.