Price to Earnings (P/E)
since 2012
Calculation
Palo Alto Networks Inc., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income (loss)1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Aug 29, 2025 | 112.39 | = | 190.52 | ÷ | 1.70 | 1.70 | = | 1,133,900 | ÷ | 668,900,000 | |
| Sep 6, 2024 | 42.42 | = | 167.91 | ÷ | 3.96 | 3.96 | = | 2,577,600 | ÷ | 651,200,000 | |
| Sep 1, 2023 | 170.35 | = | 121.36 | ÷ | 0.71 | 0.71 | = | 439,700 | ÷ | 617,189,208 | |
| Sep 6, 2022 | — | = | 88.43 | ÷ | -0.45 | -0.45 | = | -267,000 | ÷ | 598,427,616 | |
| Sep 3, 2021 | — | = | 78.04 | ÷ | -0.85 | -0.85 | = | -498,900 | ÷ | 584,436,678 | |
| Sep 4, 2020 | — | = | 39.28 | ÷ | -0.46 | -0.46 | = | -267,000 | ÷ | 578,239,764 | |
| Sep 9, 2019 | — | = | 35.20 | ÷ | -0.14 | -0.14 | = | -81,900 | ÷ | 581,942,880 | |
| Sep 13, 2018 | — | = | 39.35 | ÷ | -0.26 | -0.26 | = | -147,900 | ÷ | 562,937,910 | |
| Sep 7, 2017 | — | = | 23.95 | ÷ | -0.39 | -0.39 | = | -216,600 | ÷ | 551,054,184 | |
| Sep 8, 2016 | — | = | 24.50 | ÷ | -0.41 | -0.41 | = | -225,900 | ÷ | 545,102,742 | |
| Sep 17, 2015 | — | = | 30.72 | ÷ | -0.32 | -0.32 | = | -164,982 | ÷ | 510,053,352 | |
| Sep 18, 2014 | — | = | 16.49 | ÷ | -0.47 | -0.47 | = | -226,452 | ÷ | 477,770,826 | |
| Sep 25, 2013 | — | = | 7.72 | ÷ | -0.07 | -0.07 | = | -29,246 | ÷ | 430,002,978 | |
| Oct 4, 2012 | 6,057.94 | = | 10.96 | ÷ | 0.00 | 0.00 | = | 737 | ÷ | 407,363,634 |
Based on: 10-K (reporting date: 2025-07-31), 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), 10-K (reporting date: 2018-07-31), 10-K (reporting date: 2017-07-31), 10-K (reporting date: 2016-07-31), 10-K (reporting date: 2015-07-31), 10-K (reporting date: 2014-07-31), 10-K (reporting date: 2013-07-31), 10-K (reporting date: 2012-07-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Palo Alto Networks Inc. Annual Report.
The analysis of the financial data over the assessed periods reveals several significant trends and changes in the key metrics.
- Share Price
- The share price exhibited a general upward trajectory from 2012 through 2025, with notable fluctuations. Initially, the price decreased from $10.96 in 2012 to $7.72 in 2013 before beginning a steady climb. Substantial increases occurred around 2014 and 2015, peaking at $30.72 in 2015. The price then experienced moderate volatility, stabilizing in the $20 to $40 range until 2020. From 2020 onwards, there was a marked acceleration in growth, with prices rising sharply to reach approximately $190.52 by 2025, indicating strong market confidence and perceived value growth in more recent years.
- Earnings Per Share (EPS)
- EPS was negative in most years from 2012 through 2021, reflecting ongoing losses or expenses exceeding earnings during this period. The values ranged from -0.07 in 2013 to a low of -0.85 in 2021. A significant improvement occurred starting in 2022, with EPS turning positive at $0.71, followed by a further substantial increase to $3.96 in 2023, indicating a turnaround in profitability. However, in 2024 and 2025, EPS showed some volatility, decreasing again to $1.7 in 2025, which may suggest some challenges in maintaining earnings growth or increased expenses.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio data is sparse but indicates extremely high valuations in the early years, exemplified by a ratio of 6057.94 in 2012 when EPS was near zero or negative, suggesting that traditional valuation metrics were less meaningful during initial loss periods. Later reported P/E ratios in 2022, 2023, and 2024 were more moderate but still elevated at 170.35, 42.42, and 112.39 respectively, reflecting a market willing to pay a premium for future earnings potential despite some volatility in EPS. The fluctuations in P/E align with the swings in earnings and significant growth expectations embedded in the share price.
In summary, the data presents a company that initially struggled with profitability but managed to transition into a profitable phase with substantial growth in share price. The high P/E ratios suggest investor optimism and valuation based on future growth prospects rather than current earnings. The recent positive EPS figures mark an important milestone, yet the variability in EPS indicates ongoing operational or market challenges.
Comparison to Competitors
Palo Alto Networks Inc., P/E, long-term trends, comparison to competitors
| Palo Alto Networks Inc. | Accenture PLC | Adobe Inc. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Datadog Inc. | Fair Isaac Corp. | International Business Machines Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Aug 29, 2025 | 112.39 | — | — | — | — | — | — | — | 48.19 | 37.46 | 47.60 | — | 45.28 | — | — | 122.85 |
| Sep 6, 2024 | 42.42 | 31.07 | 31.98 | 67.09 | 892.67 | 235.49 | 99.26 | 39.68 | 58.94 | 35.67 | 37.63 | 632.38 | 71.24 | 146.40 | 33.69 | 50.53 |
| Sep 1, 2023 | 170.35 | 27.81 | 49.64 | 78.64 | — | 884.97 | 54.13 | 22.50 | 64.61 | 33.96 | 38.96 | 246.77 | 879.57 | 90.80 | 70.08 | — |
| Sep 6, 2022 | — | 22.93 | 33.15 | 59.70 | — | — | 29.67 | 71.56 | 57.31 | 28.34 | 26.85 | — | 135.68 | 284.28 | 51.76 | 1,957.29 |
| Sep 3, 2021 | — | 36.58 | 48.90 | 53.88 | — | — | 27.12 | 19.40 | 75.17 | 35.14 | 15.84 | — | 48.20 | 487.70 | 73.37 | — |
| Sep 4, 2020 | — | 28.32 | 41.69 | 62.89 | — | — | 56.83 | 19.30 | 49.52 | 35.04 | 16.69 | — | 1,204.70 | 978.47 | 55.92 | — |
| Sep 9, 2019 | — | 24.58 | 57.17 | 20.22 | — | — | 49.99 | 13.35 | 48.17 | 26.86 | 16.89 | — | 107.70 | 106.89 | 39.55 | — |
| Sep 13, 2018 | — | 24.10 | 46.11 | 46.59 | — | — | 39.92 | 14.25 | 46.88 | 50.00 | 45.90 | — | 731.11 | — | 29.60 | — |
| Sep 7, 2017 | — | 26.18 | 57.41 | 55.67 | — | — | 35.95 | 25.07 | 37.26 | 26.25 | 22.49 | — | 324.94 | — | 95.81 | — |
| Sep 8, 2016 | — | 18.07 | 46.80 | 40.53 | — | — | 32.00 | 14.29 | 29.60 | 26.08 | 18.53 | — | — | — | 33.71 | — |
| Sep 17, 2015 | — | 22.75 | 70.59 | 25.14 | — | — | 31.32 | 9.65 | 63.89 | 30.63 | 17.92 | — | — | — | 30.45 | — |
| Sep 18, 2014 | — | 17.46 | 132.73 | 34.03 | — | — | 23.93 | 13.55 | 26.44 | 16.11 | 16.33 | — | — | — | 25.00 | — |
| Sep 25, 2013 | — | 15.20 | 104.21 | 26.30 | — | — | 21.77 | 11.58 | 21.73 | 12.14 | 12.78 | — | — | — | 24.68 | — |
| Oct 4, 2012 | 6,057.94 | 17.95 | 22.73 | 9.11 | — | — | 15.63 | 13.37 | 22.37 | 14.40 | 13.61 | — | — | — | 26.53 | — |
Based on: 10-K (reporting date: 2025-07-31), 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), 10-K (reporting date: 2018-07-31), 10-K (reporting date: 2017-07-31), 10-K (reporting date: 2016-07-31), 10-K (reporting date: 2015-07-31), 10-K (reporting date: 2014-07-31), 10-K (reporting date: 2013-07-31), 10-K (reporting date: 2012-07-31).
Comparison to Sector (Software & Services)
Palo Alto Networks Inc., P/E, long-term trends, comparison to sector (software & services)
| Palo Alto Networks Inc. | Software & Services | |
|---|---|---|
| Aug 29, 2025 | 112.39 | — |
| Sep 6, 2024 | 42.42 | 42.01 |
| Sep 1, 2023 | 170.35 | 40.33 |
| Sep 6, 2022 | — | 34.64 |
| Sep 3, 2021 | — | 37.89 |
| Sep 4, 2020 | — | 38.75 |
| Sep 9, 2019 | — | 28.36 |
| Sep 13, 2018 | — | 43.29 |
| Sep 7, 2017 | — | 30.29 |
| Sep 8, 2016 | — | 23.98 |
| Sep 17, 2015 | — | 23.40 |
| Sep 18, 2014 | — | 18.37 |
| Sep 25, 2013 | — | 14.10 |
| Oct 4, 2012 | 6,057.94 | 14.97 |
Based on: 10-K (reporting date: 2025-07-31), 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), 10-K (reporting date: 2018-07-31), 10-K (reporting date: 2017-07-31), 10-K (reporting date: 2016-07-31), 10-K (reporting date: 2015-07-31), 10-K (reporting date: 2014-07-31), 10-K (reporting date: 2013-07-31), 10-K (reporting date: 2012-07-31).
Comparison to Industry (Information Technology)
Palo Alto Networks Inc., P/E, long-term trends, comparison to industry (information technology)
| Palo Alto Networks Inc. | Information Technology | |
|---|---|---|
| Aug 29, 2025 | 112.39 | — |
| Sep 6, 2024 | 42.42 | 45.22 |
| Sep 1, 2023 | 170.35 | 36.08 |
| Sep 6, 2022 | — | 26.90 |
| Sep 3, 2021 | — | 29.73 |
| Sep 4, 2020 | — | 31.25 |
| Sep 9, 2019 | — | 23.31 |
| Sep 13, 2018 | — | 23.20 |
| Sep 7, 2017 | — | 23.46 |
| Sep 8, 2016 | — | 19.50 |
| Sep 17, 2015 | — | 16.54 |
| Sep 18, 2014 | — | 17.12 |
| Sep 25, 2013 | — | 14.15 |
| Oct 4, 2012 | 6,057.94 | 14.37 |
Based on: 10-K (reporting date: 2025-07-31), 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), 10-K (reporting date: 2018-07-31), 10-K (reporting date: 2017-07-31), 10-K (reporting date: 2016-07-31), 10-K (reporting date: 2015-07-31), 10-K (reporting date: 2014-07-31), 10-K (reporting date: 2013-07-31), 10-K (reporting date: 2012-07-31).