Ratio Review: Analyzing Palo Alto Networks Inc (PANW)’s Price-to-Cash and Price-to-Free Cash Flow

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After finishing at $182.79 in the prior trading day, Palo Alto Networks Inc (NASDAQ: PANW) closed at $183.40, up 0.33%. In other words, the price has increased by $0.33 from its previous closing price. On the day, 5.55 million shares were traded. PANW stock price reached its highest trading level at $184.8992 during the session, while it also had its lowest trading level at $180.93.

Ratios:

Our goal is to gain a better understanding of PANW by taking a closer look at its different ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 35.38 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 39.11. For the most recent quarter (mrq), Quick Ratio is recorded 0.79 and its Current Ratio is at 0.79. In the meantime, Its Debt-to-Equity ratio is 0.17 whereas as Long-Term Debt/Eq ratio is at 0.06.

Guggenheim Downgraded its Neutral to Sell on January 06, 2025, while the target price for the stock was maintained at $130.

Insider Transactions:

The insider trade also gives investors a glimpse into the future direction of stock prices, which can be beneficial to investors. A recent insider transaction in this stock occurred on Feb 04 ’25 when Nikesh Arora bought 297,673 shares for $183.40 per share.

Klarich Lee sold 99,707 shares of PANW for $18,191,148 on Feb 03 ’25. The EVP, Chief Product Officer now owns 358,197 shares after completing the transaction at $182.45 per share. On Feb 03 ’25, another insider, Paul Josh D., who serves as the Chief Accounting Officer of the company, sold 700 shares for $181.22 each. As a result, the insider received 126,854 and left with 47,976 shares of the company.

Valuation Measures:

Investors should consider key stock statistics when deciding whether to invest or divest. In the wake of the recent closing price, PANW now has a Market Capitalization of 120347074560 and an Enterprise Value of 126756487168. As of this moment, Palo’s Price-to-Earnings (P/E) ratio for their current fiscal year is 47.81, and their Forward P/E ratio for the next fiscal year is 50.55. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 3.42. For the stock, the TTM Price-to-Sale (P/S) ratio is 14.52 while its Price-to-Book (P/B) ratio in mrq is 20.33. Its current Enterprise Value per Revenue stands at 15.79 whereas that against EBITDA is 115.823.

Stock Price History:

The Beta on a monthly basis for PANW is 1.05, which has changed by 0.002962947 over the last 52 weeks, in comparison to a change of 0.2000997 over the same period for the S&P500. Over the past 52 weeks, PANW has reached a high of $207.24, while it has fallen to a 52-week low of $130.04. The 50-Day Moving Average of the stock is -2.64%, while the 200-Day Moving Average is calculated to be 6.37%.

Shares Statistics:

The stock has traded on average 5.53M shares per day over the past 3-months and 5796140 shares per day over the last 10 days, according to various share statistics. A total of 655.40M shares are outstanding, with a floating share count of 648.85M. Insiders hold about 1.12% of the company’s shares, while institutions hold 78.09% stake in the company. Shares short for PANW as of 1730332800 were 10273350 with a Short Ratio of 4.45, compared to 1727654400 on 9605599. Therefore, it implies a Short% of Shares Outstanding of 10273350 and a Short% of Float of 3.17.

Earnings Estimates

The market rating of Palo Alto Networks Inc (PANW) is currently shaped by the ongoing analysis conducted by 43.0 analysts closely monitoring its performance.The consensus estimate for the next quarter is $0.76, with high estimates of $0.8 and low estimates of $0.71.

Analysts are recommending an EPS of between $3.95 and $2.2 for the fiscal current year, implying an average EPS of $3.17. EPS for the following year is $3.6, with 52.0 analysts recommending between $3.9 and $2.3.

Revenue Estimates

43 analysts predict $2.24B in revenue for the current quarter. It ranges from a high estimate of $2.28B to a low estimate of $2.22B. As of the current estimate, Palo Alto Networks Inc’s year-ago sales were $1.98BFor the next quarter, 43 analysts are estimating revenue of $2.27B. There is a high estimate of $2.29B for the next quarter, whereas the lowest estimate is $2.24B.

A total of 52 analysts have provided revenue estimates for PANW’s current fiscal year. The highest revenue estimate was $9.23B, while the lowest revenue estimate was $8.99B, resulting in an average revenue estimate of $9.15B. In the same quarter a year ago, actual revenue was $8.03BBased on 52 analysts’ estimates, the company’s revenue will be $10.58B in the next fiscal year. The high estimate is $12.48B and the low estimate is $10.08B.

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