Price to Operating Profit (P/OP)
since 2012
Calculation
Palo Alto Networks Inc., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income (loss)1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Aug 29, 2025 | 102.53 | = | 190.52 | ÷ | 1.86 | 1.86 | = | 1,242,900 | ÷ | 668,900,000 | |
| Sep 6, 2024 | 159.88 | = | 167.91 | ÷ | 1.05 | 1.05 | = | 683,900 | ÷ | 651,200,000 | |
| Sep 1, 2023 | 193.40 | = | 121.36 | ÷ | 0.63 | 0.63 | = | 387,300 | ÷ | 617,189,208 | |
| Sep 6, 2022 | — | = | 88.43 | ÷ | -0.32 | -0.32 | = | -188,800 | ÷ | 598,427,616 | |
| Sep 3, 2021 | — | = | 78.04 | ÷ | -0.52 | -0.52 | = | -304,100 | ÷ | 584,436,678 | |
| Sep 4, 2020 | — | = | 39.28 | ÷ | -0.31 | -0.31 | = | -179,000 | ÷ | 578,239,764 | |
| Sep 9, 2019 | — | = | 35.20 | ÷ | -0.09 | -0.09 | = | -54,100 | ÷ | 581,942,880 | |
| Sep 13, 2018 | — | = | 39.35 | ÷ | -0.23 | -0.23 | = | -129,100 | ÷ | 562,937,910 | |
| Sep 7, 2017 | — | = | 23.95 | ÷ | -0.33 | -0.33 | = | -179,800 | ÷ | 551,054,184 | |
| Sep 8, 2016 | — | = | 24.50 | ÷ | -0.35 | -0.35 | = | -190,100 | ÷ | 545,102,742 | |
| Sep 17, 2015 | — | = | 30.72 | ÷ | -0.26 | -0.26 | = | -133,536 | ÷ | 510,053,352 | |
| Sep 18, 2014 | — | = | 16.49 | ÷ | -0.45 | -0.45 | = | -215,347 | ÷ | 477,770,826 | |
| Sep 25, 2013 | — | = | 7.72 | ÷ | -0.04 | -0.04 | = | -18,621 | ÷ | 430,002,978 | |
| Oct 4, 2012 | 1,147.44 | = | 10.96 | ÷ | 0.01 | 0.01 | = | 3,891 | ÷ | 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 share price exhibited considerable volatility over the analyzed period, starting at a relatively low level and experiencing fluctuations before entering a phase of significant growth. Initial years showed modest or declining share prices, but from 2018 onwards, a clear upward trend is evident, culminating in a substantial increase by the final periods. This pattern suggests increasing market confidence or improved company valuation factors during the latter years.
The operating profit per share data indicate persistent challenges with profitability in the earlier years, where losses per share were recorded continuously. Despite these losses, there is a gradual improvement over time, with the operating profit per share turning positive in the most recent years and showing an increasing trend thereafter. This shift from losses to positive operating profitability marks a significant financial turnaround.
The Price to Operating Profit (P/OP) ratio, available for the earliest and latest periods, reflects a very high valuation relative to operating profits initially, which is typical when profitability is negative or marginal. A marked reduction in this ratio in recent years aligns with the improvement in operating profit per share and the concurrent rise in share price. The decline in the ratio indicates a comparatively more rational or earnings-driven valuation as operating profits strengthened.
- Share Price Trends
- Initial volatility with substantial growth in recent years, particularly post-2018, indicating enhanced investor confidence or improved business prospects.
- Operating Profit Per Share Trends
- Consistent losses in early periods transitioning to growing positive profits in recent years, demonstrating operational improvement and increased profitability.
- Price to Operating Profit Ratio
- Very high and potentially inflated in early years due to losses, decreasing significantly in recent years as operating profitability improved, reflecting a more balanced valuation.
Comparison to Competitors
Palo Alto Networks Inc., P/OP, 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. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Aug 29, 2025 | 102.53 | — | — | — | — | — | — | 37.87 | 29.68 | 33.50 | — | 38.94 | — | — | 155.71 |
| Sep 6, 2024 | 159.88 | 23.52 | 26.38 | 52.42 | — | 797.11 | 69.38 | 48.11 | 28.73 | 25.65 | 941.61 | 58.80 | 152.95 | 56.25 | 381.31 |
| Sep 1, 2023 | 193.40 | 21.69 | 40.52 | 65.43 | — | — | 36.15 | 49.04 | 27.76 | 25.30 | 431.61 | 177.62 | 206.26 | 67.90 | — |
| Sep 6, 2022 | — | 16.83 | 25.85 | 47.21 | — | — | 20.43 | 46.05 | 24.72 | 16.51 | — | 357.52 | 260.26 | 43.85 | — |
| Sep 3, 2021 | — | 28.35 | 40.64 | 48.13 | — | — | 21.03 | 62.00 | 30.79 | 14.31 | — | 431.39 | 436.46 | 75.64 | — |
| Sep 4, 2020 | — | 22.21 | 51.75 | 57.54 | — | — | 45.39 | 41.56 | 29.30 | 12.17 | — | 511.08 | 583.07 | 59.90 | — |
| Sep 9, 2019 | — | 18.63 | 51.63 | 40.67 | — | — | 37.88 | 40.45 | 24.54 | 13.83 | — | 223.46 | 1,590.30 | 40.48 | — |
| Sep 13, 2018 | — | 16.75 | 42.06 | 40.66 | — | — | 27.54 | 37.92 | 23.63 | 12.83 | — | 395.31 | — | 35.54 | — |
| Sep 7, 2017 | — | 19.47 | 44.86 | 35.08 | — | — | 26.02 | 25.94 | 24.93 | 16.52 | — | 908.77 | — | 37.64 | — |
| Sep 8, 2016 | — | 15.44 | 36.62 | 33.61 | — | — | 20.65 | 23.33 | 21.70 | 13.09 | — | 411.51 | — | 28.34 | — |
| Sep 17, 2015 | — | 15.66 | 49.21 | 22.23 | — | — | 19.70 | 31.60 | 20.57 | 12.84 | — | — | — | 25.82 | — |
| Sep 18, 2014 | — | 11.94 | 86.32 | 26.17 | — | — | 14.03 | 18.25 | 12.81 | 12.12 | — | — | — | 26.04 | — |
| Sep 25, 2013 | — | 11.50 | 71.49 | 22.85 | — | — | 12.14 | 15.12 | 9.91 | 9.51 | — | — | — | 24.81 | — |
| Oct 4, 2012 | 1,147.44 | 11.84 | 16.04 | 18.94 | — | — | 8.54 | 15.05 | 11.23 | 9.91 | — | — | — | 25.46 | — |
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).