What is PANW's intrinsic value?

TickerWorth's valuation lenses put Palo Alto Networks, Inc. (PANW) between $40.77 and $184.54 per share, versus a market price of $342.09. They disagree too widely for us to state a single fair value, so we publish the range.

Is PANW overvalued or undervalued?

At $342.09 the price sits above every lens we ran. We don't call PANW overvalued or undervalued from a range this wide. This is an educational estimate, not advice.

What discount rate is used for PANW?

A WACC of 9.8% and a terminal growth rate of 2.5%.

Is Palo Alto Networks stock undervalued?

TickerWorth's fair-value range for Palo Alto Networks, Inc. (PANW) is $40.77 – $184.54 against a market price of $342.09. Priced above our range. We publish a range here, not one number, so we do not call it over- or undervalued. This is a model estimate, not investment advice.

Palo Alto Networks (PANW) DCF valuation and fair value

Our fair-value range for Palo Alto Networks, Inc. (PANW) is $40.77 – $184.54, built on a 9.8% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.

Palo Alto Networks (PANW) insider trading

The most recent insider filing (SEC Form 4) for Palo Alto Networks, Inc. (PANW): Bawa Aparna, Director, open-market sale on 2026-10-09. The latest filings are listed on this page. A disclosure, not a signal to trade.

PANW · Intrinsic value

Is Palo Alto Networks, Inc. (PANW) overvalued or undervalued?

Name: Palo Alto Networks, Inc. (PANW) DCF intrinsic value
Creator: TickerWorth

As of Oct 20, 2026, TickerWorth publishes a fair-value range of $40.77 – $184.54 for Palo Alto Networks, Inc. (PANW), against the delayed market price of $342.09: priced above our range. It is a range, not a single number, so we do not call it over- or undervalued. It is a model estimate; every input is sourced below.

Model by Miraaj Patel · generated from a hand-researched model · Updated Oct 20, 2026 · How these pages are made

Open full PANW analysis

What is PANW worth?

Fair-value range: $40.77 – $184.54
Market price: $342.09
Gap to fair value: —
Verdict: Priced above our range

Price as of 20 Oct 2026, 15:02 UTC · Prices are delayed.Our valuation lenses disagree too widely on this company for us to publish a single number, so we publish the range instead. We do not call it over- or undervalued from a spread this wide.

Fair-value range against the delayed market price: Priced above our range.

Reverse DCF, on our cash-flow model rather than the range above: Today's price implies revenue growth of more than 25%/yr. Above about 25% a year the reverse-DCF stops being informative. It solves for revenue growth alone — holding margins, capital intensity and the forecast horizon fixed — so a price well above our cash-flow model's value has nowhere to go but growth, and the solver returns a rate the model can't reconcile. Read it as "the price implies growth we can't justify", not as a forecast.

What is PANW's TickerWorth Score?

D40/100

Priced richly vs peers — the business scores well

Compared with Technology companies in US

Its strongest point: growing quickly. Its weakest: looks expensive on the numbers.

Value · 15 of 100
Cheaper than 15% of Technology companies in US
Price vs worth · 3 of 100
Quality · 38 of 100
More profitable than 38% of Technology companies in US
Financial health · 56 of 100
Financially stronger than 56% of Technology companies in US
Growth · 86 of 100
Growing faster than 86% of Technology companies in US
Momentum · 68 of 100
Outperformed 68% of Technology companies in US over the past year

Confidence: Medium confidence · Scored 20 Oct 2026, 15:02 UTC

Get the Undervalued Company of the Week.

Where the numbers come from

Hand-researched model

What the modeller flagged

THE GAP IS THE LARGEST OF ANY SOFTWARE COMPANY IN THIS TRACKER, AND NO SINGLE LEVER CLOSES IT. Run backwards with everything else held: revenue growth of ~87% a year for FY2028-31 (revenue to ~$172B); or a terminal growth rate of ~9.1% against a 9.76% WACC; a 100% operating margin from FY2028 on gives only ~$256; a beta of zero gives ~$126. Stacking every generous choice at once (non-GAAP margins so stock pay and acquisitions are free, management's ARR target, double the working-capital credit, 3% terminal growth) gives ~$113; add a 0.7 beta and ~$133. The market at today's price is paying ~97x FY2027 non-GAAP EPS guidance and ~61x guided adjusted FCF: it is pricing a much longer runway of 20%+ growth than a five-year model with a 2.5% fade can express.
YEAR-1 FCF IS ~78% BELOW REPORTED FCF (~$0.92B modeled for FY2027 vs $4,113M reported for FY2026 and ~$5.4B guided adjusted FCF for FY2027) - far past the 20% line, so decomposed against the FY2027 guide: ~$2.05B of stock compensation that reported FCF adds back and this model keeps as a cost; ~$1.13B of acquired-intangible amortization kept as the acquisition-treadmill charge; ~$0.9B less working-capital credit (the model credits ~$0.4B against a reported ~$1.2-1.4B a year); ~$0.15B of acquisition/integration cost that the adjusted figure excludes. That bridges all but ~$0.2B. It is the treatment, not a forecast error.
TERMINAL VALUE IS ~79% OF ENTERPRISE VALUE - above the 75% danger line. The five explicit years contribute ~21%; treat the per-share figure as the middle of a range.
THE MARGIN PATH IS THE BIGGEST JUDGEMENT. GAAP margin climbs from 5.9% to 16.5% by FY2031. Valuing on the non-GAAP path instead (29.5% -> 33%, stock pay and acquisitions free) gives ~$93/share - still ~77% below the price.
STOCK COMPENSATION IS UNUSUALLY LARGE: SBC-related charges were $1,712M (14.9% of revenue) in FY2026, the single biggest item between the 29% non-GAAP and 6% GAAP margins. Kept as a cost. The share count is rising (668M -> 818M in a year, guided 844-847M for FY2027), not falling.
WORKING CAPITAL IS A REAL, LARGE CASH SOURCE THAT IS ONLY PARTLY CREDITED: deferred revenue is $14.8B (129% of revenue) and the operating float is -85% of revenue. The -15% input is calibrated to the perpetuity, not to the history (-52% to -119% of incremental revenue in FY2024-26). It also offsets some financing risk: Palo Alto carries $1.5B of customer financing receivables.
AI CUTS BOTH WAYS AND THE NUMBERS DO NOT YET RESOLVE IT. Bull: frontier models (Anthropic's Mythos) have made cyber defense urgent - 2,000+ customer briefings, NGS ARR +63% (largely acquired), RPO $21.2B (+34%). Bear: the FY2027 guide slows NGS ARR to +22-23% and RPO to +19-20%, part of FY2026's ARR came from one non-repeating Chronosphere migration, and the same AI that drives demand also drives competition from CrowdStrike, Okta and cloud providers' native tools.

Why PANW gets a range, not one number

At a recent price of $342.09, Palo Alto Networks, Inc. (PANW) sits above every lens we ran: our valuation lenses put the business somewhere between $40.77 and $184.54 per share. They disagree too widely for us to state a single fair value. We publish the range rather than a midpoint because a number that precise would claim more than the methods can support. This is an educational model, not a price target or a recommendation.

Read the full reasoning

The valuation discounts Palo Alto Networks, Inc.'s projected free cash flows at a weighted-average cost of capital (WACC) of 9.8%, with a long-run terminal growth rate of 2.5%. About 79% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.

Running the DCF in reverse — solving for the growth the current price already assumes — PANW would need sustained revenue growth of more than 25%/yr to justify today's price, against about 15.2% a year compounded in our base case. We don't quote a precise figure here, because past about 25% a year the reverse-DCF stops being informative: it solves for revenue growth alone, holding margins, capital intensity and the forecast horizon fixed, so a price well above our fair value has nowhere to go but growth. The honest reading is that the price implies growth this model can't reconcile — not that we forecast it.

Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, PANW's modeled DCF value ranges from about $37.74 to $70.64 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.

How to read this page: the DCF fair value is what Palo Alto Networks, Inc. would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of PANW's intrinsic value. Figures update as new filings and prices come in.

Every input behind PANW's DCF

Input	Value	Source
Base-year revenuePalo Alto Networks FY2026 10-K (fiscal year ended 2026-07-31; accession 0001327567-26-000023, filed 2026-09-10): Total revenue FY2026 (year ended 31 July 2026), us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax: product $2,280M + subscription and support $9,200M = $11,480M, +24.5% on FY2025's $9,221M. HEAVILY ACQUISITION-SHAPED: Chronosphere closed 2026-01-29 and CyberArk closed 2026-02-11, and the 10-K says the two together contributed $930M of revenue (and an operating LOSS of $797M) after their close dates. Ex those two, growth was ~14.4% ((11,480-930)/9,221 - my arithmetic, not a company figure). The 10-K's unaudited pro forma, as if both had been owned all along, is $12,312M for FY2026 vs $10,486M for FY2025 (+17.4%). The base is the REPORTED figure, which carries only ~5.5 months of CyberArk; the full-year effect therefore sits in Year-1 growth, which is ~7 points inorganic. CROSS-CHECK, latest quarter (Q4 FY2026, the first quarter with both deals in for the whole period): revenue $3,410M, +34% YoY. All share data on this page is post the 2-for-1 stock split effected 2024-12-12 (10-K Note 1).	$11,480,000,000	Palo Alto Networks FY2026 10-K (fiscal year ended 2026-07-31; accession 0001327567-26-000023, filed 2026-09-10): Total revenue FY2026 (year ended 31 July 2026), us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax: product $2,280M + subscription and support $9,200M = $11,480M, +24.5% on FY2025's $9,221M. HEAVILY ACQUISITION-SHAPED: Chronosphere closed 2026-01-29 and CyberArk closed 2026-02-11, and the 10-K says the two together contributed $930M of revenue (and an operating LOSS of $797M) after their close dates. Ex those two, growth was ~14.4% ((11,480-930)/9,221 - my arithmetic, not a company figure). The 10-K's unaudited pro forma, as if both had been owned all along, is $12,312M for FY2026 vs $10,486M for FY2025 (+17.4%). The base is the REPORTED figure, which carries only ~5.5 months of CyberArk; the full-year effect therefore sits in Year-1 growth, which is ~7 points inorganic. CROSS-CHECK, latest quarter (Q4 FY2026, the first quarter with both deals in for the whole period): revenue $3,410M, +34% YoY. All share data on this page is post the 2-for-1 stock split effected 2024-12-12 (10-K Note 1).
Base EBIT marginPalo Alto Networks FY2026 10-K (fiscal year ended 2026-07-31; accession 0001327567-26-000023, filed 2026-09-10): GAAP operating income $695M / revenue $11,480M = 6.05%. GAAP, NOT the 29.2% non-GAAP margin ($3,356M) Palo Alto headlines. The Q4 release reconciles the 23-point gap: share-based-compensation-related charges $1,712M (14.9% of revenue), acquired-intangible amortization $638M (5.6%), acquisition-related costs $295M (2.6%, already NET of a $117M gain on the IBM QRadar contingent-consideration liability) and litigation $16M. All stay in. FY2025 GAAP margin was 13.5% ($1,243M); the halving is the two big deals (operating loss of $797M since close, per the 10-K: amortization, replacement-award SBC, integration). CROSS-CHECK, Q4 FY2026: GAAP 5.0% ($172M / $3,410M), non-GAAP 29.6%, with amortization alone at $281M (8.2% of revenue) - the run-rate once CyberArk is in for a full quarter. EXCLUDED below this line: other income of -$159M, which nets interest income against a $562M loss on the fair value of CyberArk's convertible notes and capped calls (a mark on the share price, not an operating cost).	6.0%	Palo Alto Networks FY2026 10-K (fiscal year ended 2026-07-31; accession 0001327567-26-000023, filed 2026-09-10): GAAP operating income $695M / revenue $11,480M = 6.05%. GAAP, NOT the 29.2% non-GAAP margin ($3,356M) Palo Alto headlines. The Q4 release reconciles the 23-point gap: share-based-compensation-related charges $1,712M (14.9% of revenue), acquired-intangible amortization $638M (5.6%), acquisition-related costs $295M (2.6%, already NET of a $117M gain on the IBM QRadar contingent-consideration liability) and litigation $16M. All stay in. FY2025 GAAP margin was 13.5% ($1,243M); the halving is the two big deals (operating loss of $797M since close, per the 10-K: amortization, replacement-award SBC, integration). CROSS-CHECK, Q4 FY2026: GAAP 5.0% ($172M / $3,410M), non-GAAP 29.6%, with amortization alone at $281M (8.2% of revenue) - the run-rate once CyberArk is in for a full quarter. EXCLUDED below this line: other income of -$159M, which nets interest income against a $562M loss on the fair value of CyberArk's convertible notes and capped calls (a mark on the share price, not an operating cost).
Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast	23% → 15% → 14% → 13% → 11%	ESTIMATEAssumption — TickerWorth's 5-year explicit forecast
Risk-free rateUS 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation. Shared by every model in this tracker.	5.2%	US 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation. Shared by every model in this tracker.
BetaYahoo Finance / yfinance published beta (5Y monthly): Published 5Y-monthly beta 0.908, used as published (house rule). Flag: 2026 has been extraordinarily volatile for this stock - $139.57 to $409.50 inside 52 weeks, a 9% one-day fall on 2026-09-02 and a 13% one-day rise on 2026-09-14 - and a 60-month regression barely registers it. If anything the published figure is low, so using it is mildly GENEROUS; a beta of 1.2 would take ~$8/share off. Each 0.1 of beta is worth roughly $2.5-3/share.	0.91	Yahoo Finance / yfinance published beta (5Y monthly): Published 5Y-monthly beta 0.908, used as published (house rule). Flag: 2026 has been extraordinarily volatile for this stock - $139.57 to $409.50 inside 52 weeks, a 9% one-day fall on 2026-09-02 and a 13% one-day rise on 2026-09-14 - and a 60-month regression barely registers it. If anything the published figure is low, so using it is mildly GENEROUS; a beta of 1.2 would take ~$8/share off. Each 0.1 of beta is worth roughly $2.5-3/share.
Terminal growthESTIMATEAssumption — house default: House default 2.5% (roughly long-run nominal GDP), kept for comparability. Palo Alto's last forecast year grows 11%, so the step down to 2.5% is a steep fade and the single biggest structural reason a five-year DCF struggles with this company; 3.0% adds ~$2.6/share, 2.0% takes ~$2.3 off. Must remain < WACC (9.76%).	2.5%	ESTIMATEAssumption — house default: House default 2.5% (roughly long-run nominal GDP), kept for comparability. Palo Alto's last forecast year grows 11%, so the step down to 2.5% is a steep fade and the single biggest structural reason a five-year DCF struggles with this company; 3.0% adds ~$2.6/share, 2.0% takes ~$2.3 off. Must remain < WACC (9.76%).
Diluted sharesPalo Alto Networks Q4 FY2026 earnings release, 8-K Ex-99.1 (accession 0001327567-26-000019, filed 2026-09-01) (GAAP-to-non-GAAP share reconciliation) + FY2026 10-K: 833M = Q4 FY2026 weighted-average basic/GAAP-diluted shares of 817M + 16M of dilutive employee awards that GAAP excluded only because Q4 was a loss quarter (release reconciliation, footnote 5: 'potentially dilutive effect of employee equity incentive plan awards in periods with GAAP net loss'). The -1M capped-call adjustment Palo Alto uses for non-GAAP is NOT taken, because the capped calls are credited in net debt instead. The full-year diluted figure (764M) is not used: CyberArk's 112M shares were only issued on 2026-02-11. The count is RISING, not falling: 668M outstanding a year ago, 815M at 2026-07-31, 818M at 2026-08-31 (10-K cover), and management's FY2027 non-GAAP EPS guide uses 844-847M. Using 846M would take ~$0.75/share off. Only $1.0B of buyback authority remains, expiring 2026-12-31.	833M	Palo Alto Networks Q4 FY2026 earnings release, 8-K Ex-99.1 (accession 0001327567-26-000019, filed 2026-09-01) (GAAP-to-non-GAAP share reconciliation) + FY2026 10-K: 833M = Q4 FY2026 weighted-average basic/GAAP-diluted shares of 817M + 16M of dilutive employee awards that GAAP excluded only because Q4 was a loss quarter (release reconciliation, footnote 5: 'potentially dilutive effect of employee equity incentive plan awards in periods with GAAP net loss'). The -1M capped-call adjustment Palo Alto uses for non-GAAP is NOT taken, because the capped calls are credited in net debt instead. The full-year diluted figure (764M) is not used: CyberArk's 112M shares were only issued on 2026-02-11. The count is RISING, not falling: 668M outstanding a year ago, 815M at 2026-07-31, 818M at 2026-08-31 (10-K cover), and management's FY2027 non-GAAP EPS guide uses 844-847M. Using 846M would take ~$0.75/share off. Only $1.0B of buyback authority remains, expiring 2026-12-31.
Market priceDelayed quote · as of 2026-10-20 15:02 UTC	$342.09	Delayed quote · as of 2026-10-20 15:02 UTC

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What does Palo Alto Networks, Inc. do?

What does it do?

Palo Alto Networks, Inc. provides cybersecurity solutions in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. It operates in the Software - Infrastructure industry (Technology sector), headquartered in United States. The company employs roughly 21,921 people.

How does it make money?

The business turns $11.5B in annual revenue into profit. Out of every $100 of sales, about $5 is left as operating profit (operating margin of 5.4%), after a 70% gross margin on the products/services it sells. After all costs, taxes and interest, 2.7% of revenue becomes bottom-line net profit.

Is it financially healthy?

Financially it looks mixed: carries modest debt (0.1× equity), may struggle to cover its short-term bills (0.9× current ratio), and is currently profitable.

Who at PANW filed insider trades?

Recent insider filings for Palo Alto Networks, Inc.
Date	Insider	Relationship	What happened	Value	Filing
9 Oct 2026	Bawa Aparna	Director	Open-market sale	$69,700.00	Form 4 for Bawa Aparna (opens sec.gov in a new tab)
9 Oct 2026	Bawa Aparna	Director	Open-market sale	$33,370.00	Form 4 for Bawa Aparna (opens sec.gov in a new tab)
8 Oct 2026	Klarich Lee	Director, EVP Chief Product & Tech Ofcr	Gift	—	Form 4 for Klarich Lee (opens sec.gov in a new tab)
1 Oct 2026	Paul Josh D.	Chief Accounting Officer	Shares withheld (tax)	$519,681.48	Form 4 for Paul Josh D. (opens sec.gov in a new tab)
1 Oct 2026	Paul Josh D.	Chief Accounting Officer	Open-market sale	$158,280.00	Form 4 for Paul Josh D. (opens sec.gov in a new tab)
30 Sept 2026	Klarich Lee	Director, EVP Chief Product & Tech Ofcr	Gift	—	Form 4 for Klarich Lee (opens sec.gov in a new tab)

A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4). Older filings and the 90-day buying-and-selling read are part of Pro. See plans

Common questions

What is PANW's intrinsic value?
TickerWorth's valuation lenses put Palo Alto Networks, Inc. (PANW) between $40.77 and $184.54 per share, versus a market price of $342.09. They disagree too widely for us to state a single fair value, so we publish the range.
Is PANW overvalued or undervalued?
At $342.09 the price sits above every lens we ran. We don't call PANW overvalued or undervalued from a range this wide. This is an educational estimate, not advice.
What discount rate is used for PANW?
A WACC of 9.8% and a terminal growth rate of 2.5%.
Is Palo Alto Networks stock undervalued?
TickerWorth's fair-value range for Palo Alto Networks, Inc. (PANW) is $40.77 – $184.54 against a market price of $342.09. Priced above our range. We publish a range here, not one number, so we do not call it over- or undervalued. This is a model estimate, not investment advice.
Palo Alto Networks (PANW) DCF valuation and fair value
Our fair-value range for Palo Alto Networks, Inc. (PANW) is $40.77 – $184.54, built on a 9.8% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into Palo Alto Networks stock?
Today's price implies revenue growth of more than 25%/yr. Above about 25% a year the reverse-DCF stops being informative. It solves for revenue growth alone — holding margins, capital intensity and the forecast horizon fixed — so a price well above our cash-flow model's value has nowhere to go but growth, and the solver returns a rate the model can't reconcile. Read it as "the price implies growth we can't justify", not as a forecast. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $342.09. A model estimate, not investment advice.
Palo Alto Networks (PANW) insider trading
The most recent insider filing (SEC Form 4) for Palo Alto Networks, Inc. (PANW): Bawa Aparna, Director, open-market sale on 2026-10-09. The latest filings are listed on this page. A disclosure, not a signal to trade.