Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)
Interest Paid, Net of Tax
EV to FCFF Ratio, Current
EV to FCFF Ratio, Historical

Free Cash Flow to The Firm (FCFF)

Palo Alto Networks Inc., FCFF calculation

US$ in thousands

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)
Net noncash charges	(230,300)	1,787,000)	1,727,800)	1,653,300)	1,230,900)	910,000)
Changes in operating assets and liabilities, net of effects of acquisitions	910,300)	550,800)	523,900)	348,600)	71,800)	227,500)
Net cash provided by operating activities	3,257,600)	2,777,500)	1,984,700)	1,503,000)	1,035,700)	1,055,600)
Cash paid for contractual interest, net of tax¹	4,424)	15,675)	15,958)	15,800)	10,665)	10,665)
Purchases of property, equipment, and other assets	(156,800)	(146,300)	(192,800)	(116,000)	(214,400)	(131,200)
Free cash flow to the firm (FCFF)	3,105,224)	2,646,875)	1,807,858)	1,402,800)	831,965)	935,065)

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 »

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Palo Alto Networks Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Palo Alto Networks Inc. FCFF increased from 2022 to 2023 and from 2023 to 2024.

Interest Paid, Net of Tax

Palo Alto Networks Inc., interest paid, net of tax calculation

US$ in thousands

12 months ended:	Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020	Jul 31, 2019
Effective Income Tax Rate (EITR)
EITR¹	21.00%	22.40%	21.00%	21.00%	21.00%	21.00%
Interest Paid, Net of Tax
Cash paid for contractual interest, before tax	5,600)	20,200)	20,200)	20,000)	13,500)	13,500)
Less: Cash paid for contractual interest, tax²	1,176)	4,525)	4,242)	4,200)	2,835)	2,835)
Cash paid for contractual interest, net of tax	4,424)	15,675)	15,958)	15,800)	10,665)	10,665)

¹ See details »

² 2024 Calculation
Cash paid for contractual interest, tax = Cash paid for contractual interest × EITR
= 5,600 × 21.00% = 1,176

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Enterprise Value to FCFF Ratio, Current

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

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	124,737,435)
Free cash flow to the firm (FCFF)	3,105,224)
Valuation Ratio
EV/FCFF	40.17
Benchmarks
EV/FCFF, Competitors¹
Accenture PLC	25.24
Adobe Inc.	30.70
Autodesk Inc.	50.23
Cadence Design Systems Inc.	64.07
CrowdStrike Holdings Inc.	88.72
International Business Machines Corp.	17.11
Intuit Inc.	38.02
Microsoft Corp.	48.72
Oracle Corp.	39.84
Salesforce Inc.	31.45
ServiceNow Inc.	76.10
Synopsys Inc.	53.13
EV/FCFF, Sector
Software & Services	45.07
EV/FCFF, Industry
Information Technology	52.79

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

¹ Click competitor name to see calculations.

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

Enterprise Value to FCFF Ratio, Historical

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

	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)	52,958,262)	45,931,416)	22,046,667)	19,108,380)
Free cash flow to the firm (FCFF)²	3,105,224)	2,646,875)	1,807,858)	1,402,800)	831,965)	935,065)
Valuation Ratio
EV/FCFF³	34.69	28.15	29.29	32.74	26.50	20.44
Benchmarks
EV/FCFF, Competitors⁴
Accenture PLC	25.76	20.26	16.99	24.76	17.90	18.49
Adobe Inc.	—	37.75	20.82	33.61	40.43	40.48
Autodesk Inc.	36.00	20.48	27.63	41.13	23.38	98.38
Cadence Design Systems Inc.	—	63.83	44.54	35.05	44.13	29.35
CrowdStrike Holdings Inc.	81.46	38.65	96.35	141.44	807.14	—
International Business Machines Corp.	—	15.27	16.47	13.10	9.35	12.86
Intuit Inc.	36.79	31.28	32.85	48.64	37.90	33.30
Microsoft Corp.	49.30	41.75	32.31	38.37	33.99	26.37
Oracle Corp.	31.24	35.83	31.60	16.36	14.99	14.03
Salesforce Inc.	29.95	28.41	35.97	44.91	39.63	41.21
ServiceNow Inc.	—	56.49	40.86	60.13	83.74	67.96
Synopsys Inc.	—	55.87	30.82	38.59	42.88	33.32
EV/FCFF, Sector
Software & Services	—	35.33	29.55	32.31	27.29	23.61
EV/FCFF, Industry
Information Technology	—	34.32	27.25	28.19	24.28	19.87

¹ See details »

² See details »

³ 2024 Calculation
EV/FCFF = EV ÷ FCFF
= 107,728,092 ÷ 3,105,224 = 34.69

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Palo Alto Networks Inc. EV/FCFF ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Palo Alto Networks Inc. (NASDAQ:PANW)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical