Financial statement analysis and common stock valuation

Common-Size Balance Sheet: Assets
Quarterly Data

Assets components shown as percentage of total assets.

Common-Size Income Statement

Income statement components (revenues and expenses) shown as percentage of total sales.

Analysis of Short-term (Operating) Activity Ratios

Evaluates revenues and output generated by the Palo Alto Networks Inc. assets. Operating performance ratios describe the relationship between the Palo Alto Networks Inc. level of operations and the assets needed to sustain operating activities.

• Short-term Activity Ratios (Summary)
• Receivables Turnover
• Payables Turnover
• Working Capital Turnover
• Average Receivable Collection Period
• Average Payables Payment Period

Enterprise Value to FCFF (EV/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.

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

Enterprise Value (EV)

Enterprise value is total company value (the market value of common equity, debt, and preferred equity) minus the value of cash and short-term investments.

• Current EV
• Historical EV

Income Statement
Quarterly Data

The income statement (statement of earnings) reports on the performance of Palo Alto Networks Inc., the result of its operating activities.

Common Stock Valuation Ratios

Relative valuation technique determine the value of Palo Alto Networks Inc. by comparing it to similar entities (like industry or sector) on the basis of several relative ratios that compare its stock price to relevant variables that affect the stock value, such as earnings, book value, and sales.

• Current Valuation Ratios
• Historical Valuation Ratios (Summary)
• Price to Earnings (P/E)
• Price to Operating Profit (P/OP)
• Price to Sales (P/S)
• Price to Book Value (P/BV)

Analysis of Long-term (Investment) Activity Ratios
Quarterly Data

Measures how efficiently Palo Alto Networks Inc. generates revenues from its investments in fixed or total assets.

• Long-term Activity Ratios (Summary)
• Net Fixed Asset Turnover
• Total Asset Turnover
• Equity Turnover

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
Quarterly Data

Liabilities and stockholders’ equity components shown as percentage of total liabilities and stockholders’ equity.

Dividend Discount Model (DDM)

The dividend discount model (DDM) is a technique for estimating the value of a share of Palo Alto Networks Inc. common stock issue as the present value of all future dividends.

• Intrinsic Stock Value (Valuation Summary)
• Required Rate of Return (r)
• Dividend Growth Rate (g)

Income Statement

The income statement (statement of earnings) reports on the performance of Palo Alto Networks Inc., the result of its operating activities.

Analysis of Profitability Ratios
Quarterly Data

Measures the income of Palo Alto Networks Inc. relative to its revenues and invested capital.

• Profitability Ratios (Summary)
• Gross Profit Margin
• Operating Profit Margin
• Net Profit Margin
• Return on Equity (ROE)
• Return on Assets (ROA)