Palo Alto Networks Inc. (PANW) intrinsic value & 10-year financials

Palo Alto Networks Inc. (PANW) has a Graham intrinsic value of $53.15 per share. At $342.00 on Oct 17, 2026, the stock trades 543% above that value. Over the last 10 fiscal years revenue grew 23.5% a year to $9.2B, with an average return on invested capital of -8.3%.

Graham intrinsic value
$53.15
Share price (Oct 17, 2026)
$342.00
Price vs Graham value
543% above
Market cap
$242.6B
Revenue (FY2025)
$9.2B
Revenue growth (10-yr CAGR)
23.5%
ROIC (10-yr avg)
-8.3%
Free cash flow (FY2025)
$3.5B

PANW 10-year financial history

Fiscal year Revenue Net income EPS (diluted) Free cash flow Operating margin ROIC
FY2025 $9.2B $1.1B $1.60 $3.5B 13.5% 17.8%
FY2024 $8.0B $2.6B $7.28 $3.1B 8.5% 19.8%
FY2023 $6.9B $439.7M $1.28 $2.6B 5.6% 12.2%
FY2022 $5.5B -$267.0M -$0.90 $1.8B -3.4% -8.7%
FY2021 $4.3B -$498.9M -$1.73 $1.4B -7.1% -15.7%
FY2020 $3.4B -$267.0M -$0.92 $821.3M -5.3% -9.9%
FY2019 $2.9B -$81.9M -$0.29 $924.4M -1.9% -4.4%
FY2018 $2.3B -$147.9M — $925.0M -5.7% -28.1%
FY2017 $1.8B -$216.6M — $705.1M -10.2% -32.6%
FY2016 $1.4B -$225.9M — $585.6M -13.8% -33.7%

Source: annual 10-K filings on SEC EDGAR. Figures in USD.

Executive summary

Palo Alto Networks is a consistent compounder, expanding top-line revenue at 23.5% annually over the past decade.

Palo Alto Networks has historically struggled to out-earn its cost of capital, averaging just -8.3% ROIC.

Palo Alto Networks has not shown aggressive share repurchases (>10% retirement) or a major balance-sheet leverage increase (>50% net debt growth) over the 10-year window.

Benjamin Graham lens

Under Benjamin Graham's formula using SEC EDGAR fundamentals, Palo Alto Networks is modeled at 15.0% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $53.15 per share.

PANW stock: frequently asked questions

What is the intrinsic value of Palo Alto Networks Inc. (PANW) stock?

Using Benjamin Graham's revised formula, V = EPS × (8.5 + 2g) × 4.4 / Y, with reported diluted earnings per share, a 15.0% normalized growth rate (capped at 15%) and a 5.1% AAA corporate bond yield, PANW's intrinsic value is about $53.15 per share.

Is PANW stock undervalued?

At $342.00 (close on Oct 17, 2026), PANW trades 543% above its Graham value of $53.15. On Graham's terms the shares look fully priced. A formula is a starting point for research, not a recommendation.

How fast has Palo Alto Networks Inc. grown?

Revenue went from $1.4B in fiscal 2016 to $9.2B in fiscal 2025, a compound annual growth rate of 23.5%. Net income was $1.1B in fiscal 2025.

Does Palo Alto Networks Inc. generate free cash flow?

Palo Alto Networks Inc. generated $3.5B of free cash flow (operating cash flow minus capital expenditures) in fiscal 2025. Free cash flow was positive in 10 of the last 10 reported years.

What is PANW's return on invested capital?

Average ROIC over the last 10 fiscal years was -8.3%, and average return on equity was -8.4%. Sustained ROIC above about 15% usually points to a durable competitive advantage.

Where does this PANW data come from?

From Palo Alto Networks Inc.'s annual 10-K filings on SEC EDGAR, most recently filed Jun 3, 2026. Prices are end-of-day snapshots; valuations are formula outputs, not investment advice.

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