Financial statement analysis and common stock valuation

Analysis of Geographic Areas

Palo Alto Networks Inc. operates in 2 regions: United States and Other countries.

• Area Asset Turnover
• Revenue
• Long-lived assets

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)

Statement of Comprehensive Income

Comprehensive income is the change in equity (net assets) of Palo Alto Networks Inc. during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

Analysis of Revenues

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

An approach to decomposing Palo Alto Networks Inc. return on equity, return on assets, and net profit margin ratio as the product of other financial ratios.

• Two-Component Disaggregation of ROE
• Three-Component Disaggregation of ROE
• Five-Component Disaggregation of ROE
• Two-Component Disaggregation of ROA
• Four-Component Disaggregation of ROA
• Disaggregation of Net Profit Margin

Analysis of Liquidity Ratios

Measures the adequacy of Palo Alto Networks Inc. cash resources to meet its near-term cash obligations.

• Liquidity Ratios (Summary)
• Current Ratio
• Quick Ratio
• Cash Ratio

Common-Size Balance Sheet: Assets

Assets components shown as percentage of total assets.

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)

Price to FCFE (P/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.

• Free Cash Flow to Equity (FCFE)
• P to FCFE Ratio, Current
• P to FCFE Ratio, Historical

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

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