Stock Analysis on Net
Stock Analysis on Net

Palo Alto Networks Inc. (NASDAQ:PANW)

Enterprise Value to EBITDA (EV/EBITDA)

Microsoft Excel

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Palo Alto Networks Inc., EBITDA calculation

US$ in thousands

Microsoft Excel
12 months ended: Jul 31, 2024 Jul 31, 2023 Jul 31, 2022 Jul 31, 2021 Jul 31, 2020 Jul 31, 2019
Net income (loss) 2,577,600 439,700 (267,000) (498,900) (267,000) (81,900)
Add: Income tax expense (1,589,300) 126,600 59,800 33,900 35,200 7,300
Earnings before tax (EBT) 988,300 566,300 (207,200) (465,000) (231,800) (74,600)
Add: Interest expense 8,300 27,200 27,400 163,300 88,700 83,900
Earnings before interest and tax (EBIT) 996,600 593,500 (179,800) (301,700) (143,100) 9,300
Add: Depreciation and amortization 283,300 282,200 282,600 260,400 206,100 153,800
Earnings before interest, tax, depreciation and amortization (EBITDA) 1,279,900 875,700 102,800 (41,300) 63,000 163,100

Based on: 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. Palo Alto Networks Inc. EBITDA increased from 2022 to 2023 and from 2023 to 2024.

Enterprise Value to EBITDA Ratio, Current

Palo Alto Networks Inc., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in thousands)
Enterprise value (EV) 109,412,651
Earnings before interest, tax, depreciation and amortization (EBITDA) 1,279,900
Valuation Ratio
EV/EBITDA 85.49
Benchmarks
EV/EBITDA, Competitors1
Accenture PLC 15.51
Adobe Inc. 18.40
Cadence Design Systems Inc. 42.56
CrowdStrike Holdings Inc. 303.82
International Business Machines Corp. 21.46
Intuit Inc. 36.15
Microsoft Corp. 20.58
Oracle Corp. 20.27
Palantir Technologies Inc. 412.49
Salesforce Inc. 20.80
ServiceNow Inc. 66.58
Synopsys Inc. 32.47
Workday Inc. 49.87
EV/EBITDA, Sector
Software & Services 23.56
EV/EBITDA, Industry
Information Technology 25.83

Based on: 10-K (reporting date: 2024-07-31).

1 Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.

Enterprise Value to EBITDA Ratio, Historical

Palo Alto Networks Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Jul 31, 2024 Jul 31, 2023 Jul 31, 2022 Jul 31, 2021 Jul 31, 2020 Jul 31, 2019
Selected Financial Data (US$ in thousands)
Enterprise value (EV)1 107,728,092 74,503,582 52,961,254 45,934,338 22,049,558 19,111,289
Earnings before interest, tax, depreciation and amortization (EBITDA)2 1,279,900 875,700 102,800 (41,300) 63,000 163,100
Valuation Ratio
EV/EBITDA3 84.17 85.08 515.19 — 349.99 117.18
Benchmarks
EV/EBITDA, Competitors4
Accenture PLC 19.87 17.26 14.25 23.31 17.46 15.60
Adobe Inc. 22.06 34.07 22.32 35.44 43.06 41.16
Cadence Design Systems Inc. 42.25 55.61 42.11 39.61 45.75 —
CrowdStrike Holdings Inc. 262.20 — — — — —
International Business Machines Corp. 22.90 14.41 22.17 12.53 12.28 —
Intuit Inc. 38.55 38.71 36.22 51.96 35.70 34.27
Microsoft Corp. 23.66 22.92 20.17 24.59 21.74 17.21
Oracle Corp. 21.81 21.80 17.12 13.78 11.54 11.83
Palantir Technologies Inc. 551.39 175.93 — — — —
Salesforce Inc. 31.64 38.31 38.88 33.83 49.45 —
ServiceNow Inc. 87.89 96.48 104.30 147.45 220.91 —
Synopsys Inc. 39.17 54.59 36.73 53.43 42.24 26.98
Workday Inc. 86.37 216.44 147.90 670.04 — —
EV/EBITDA, Sector
Software & Services 27.09 25.22 22.55 25.68 23.25 —
EV/EBITDA, Industry
Information Technology 27.60 23.59 18.31 20.49 19.71 —

Based on: 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).

1 See details »

2 See details »

3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 107,728,092 ÷ 1,279,900 = 84.17

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. Palo Alto Networks Inc. EV/EBITDA ratio decreased from 2022 to 2023 and from 2023 to 2024.