Stock Analysis on Net
Stock Analysis on Net

Palo Alto Networks Inc. (NASDAQ:PANW)

Price to FCFE (P/FCFE)

Microsoft Excel

Free Cash Flow to Equity (FCFE)

Palo Alto Networks Inc., FCFE 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)
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
Purchases of property, equipment, and other assets (156,800) (146,300) (192,800) (116,000) (214,400) (131,200)
Repayments of convertible senior notes (1,033,700) (1,692,000) (600) (900) — (477,400)
Payments for debt issuance costs — — — (200) — (3,700)
Proceeds from borrowings on convertible senior notes, net — — — — 1,979,100 —
Free cash flow to equity (FCFE) 2,067,100 939,200 1,791,300 1,385,900 2,800,400 443,300

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
FCFE Free cash flow to equity is the cash flow available to Palo Alto Networks Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Palo Alto Networks Inc. FCFE decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Price to FCFE Ratio, Current

Palo Alto Networks Inc., current P/FCFE calculation, comparison to benchmarks

Microsoft Excel
No. shares of common stock outstanding 662,100,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands) 2,067,100
FCFE per share 3.12
Current share price (P) 198.81
Valuation Ratio
P/FCFE 63.68
Benchmarks
P/FCFE, Competitors1
Accenture PLC 25.51
Adobe Inc. 20.05
Cadence Design Systems Inc. 64.63
CrowdStrike Holdings Inc. 115.62
International Business Machines Corp. 14.45
Intuit Inc. 35.68
Microsoft Corp. 41.44
Oracle Corp. 60.47
Palantir Technologies Inc. 218.40
Salesforce Inc. 39.64
ServiceNow Inc. 59.08
Synopsys Inc. 63.16
P/FCFE, Sector
Software & Services 43.50
P/FCFE, Industry
Information Technology 53.76

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

1 Click competitor name to see calculations.

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

Price to FCFE Ratio, Historical

Palo Alto Networks Inc., historical P/FCFE calculation, comparison to benchmarks

Microsoft Excel
Jul 31, 2024 Jul 31, 2023 Jul 31, 2022 Jul 31, 2021 Jul 31, 2020 Jul 31, 2019
No. shares of common stock outstanding1 651,200,000 617,189,208 598,427,616 584,436,678 578,239,764 581,942,880
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)2 2,067,100 939,200 1,791,300 1,385,900 2,800,400 443,300
FCFE per share3 3.17 1.52 2.99 2.37 4.84 0.76
Share price1, 4 167.91 121.36 88.43 78.04 39.28 35.20
Valuation Ratio
P/FCFE5 52.90 79.75 29.54 32.91 8.11 46.21
Benchmarks
P/FCFE, Competitors6
Accenture PLC 23.91 21.01 17.87 25.76 19.01 19.50
Adobe Inc. 18.02 41.83 21.32 34.26 41.36 41.90
Cadence Design Systems Inc. — 71.40 33.41 36.31 45.86 36.04
CrowdStrike Holdings Inc. 85.82 42.65 99.63 41.38 880.68 —
International Business Machines Corp. — 9.97 11.97 48.45 9.43 4.39
Intuit Inc. 38.43 38.74 13.86 86.74 17.36 34.61
Microsoft Corp. 42.11 43.32 36.73 42.54 42.74 30.77
Oracle Corp. 48.38 15.47 — 8.36 6.27 22.31
Palantir Technologies Inc. 256.11 74.28 96.89 198.12 — —
Salesforce Inc. 38.33 31.06 16.56 49.52 50.40 29.09
ServiceNow Inc. 61.82 58.19 44.44 64.54 49.83 —
Synopsys Inc. 63.08 57.04 33.41 40.55 45.07 77.64
P/FCFE, Sector
Software & Services — 33.05 30.87 33.78 26.47 —
P/FCFE, Industry
Information Technology — 33.30 26.87 27.27 23.30 —

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 Data adjusted for splits and stock dividends.

2 See details »

3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 2,067,100,000 ÷ 651,200,000 = 3.17

4 Closing price as at the filing date of Palo Alto Networks Inc. Annual Report.

5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 167.91 ÷ 3.17 = 52.90

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Palo Alto Networks Inc. P/FCFE ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.