Price to Sales (P/S)
since 2012
Calculation
Palo Alto Networks Inc., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Revenue1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Sep 6, 2024 | 13.62 | = | 167.91 | ÷ | 12.33 | 12.33 | = | 8,027,500 | ÷ | 651,200,000 | |
| Sep 1, 2023 | 10.87 | = | 121.36 | ÷ | 11.17 | 11.17 | = | 6,892,700 | ÷ | 617,189,208 | |
| Sep 6, 2022 | 9.62 | = | 88.43 | ÷ | 9.19 | 9.19 | = | 5,501,500 | ÷ | 598,427,616 | |
| Sep 3, 2021 | 10.72 | = | 78.04 | ÷ | 7.28 | 7.28 | = | 4,256,100 | ÷ | 584,436,678 | |
| Sep 4, 2020 | 6.66 | = | 39.28 | ÷ | 5.89 | 5.89 | = | 3,408,400 | ÷ | 578,239,764 | |
| Sep 9, 2019 | 7.06 | = | 35.20 | ÷ | 4.98 | 4.98 | = | 2,899,600 | ÷ | 581,942,880 | |
| Sep 13, 2018 | 9.75 | = | 39.35 | ÷ | 4.04 | 4.04 | = | 2,273,100 | ÷ | 562,937,910 | |
| Sep 7, 2017 | 7.49 | = | 23.95 | ÷ | 3.20 | 3.20 | = | 1,761,600 | ÷ | 551,054,184 | |
| Sep 8, 2016 | 9.69 | = | 24.50 | ÷ | 2.53 | 2.53 | = | 1,378,500 | ÷ | 545,102,742 | |
| Sep 17, 2015 | 16.88 | = | 30.72 | ÷ | 1.82 | 1.82 | = | 928,052 | ÷ | 510,053,352 | |
| Sep 18, 2014 | 13.17 | = | 16.49 | ÷ | 1.25 | 1.25 | = | 598,179 | ÷ | 477,770,826 | |
| Sep 25, 2013 | 8.38 | = | 7.72 | ÷ | 0.92 | 0.92 | = | 396,107 | ÷ | 430,002,978 | |
| Oct 4, 2012 | 17.50 | = | 10.96 | ÷ | 0.63 | 0.63 | = | 255,138 | ÷ | 407,363,634 |
Based on: 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.
- Share Price
- The share price exhibits an overall upward trend from 2012 through 2024, starting at $10.96 and reaching $167.91. Initial fluctuations are noticeable, with a dip in 2013 to $7.72 followed by a rise to $30.72 in 2015. After some variability between 2016 and 2020, a significant increase occurs from 2020 onwards, nearly quadrupling by 2024. This suggests strong market confidence or improved performance expectations in the later years.
- Sales per Share
- Sales per share have steadily increased throughout the period, from $0.63 in 2012 to $12.33 in 2024. The growth rate appears relatively consistent, highlighting continuous improvement in revenue generation attributed per share. The steady rise indicates effective sales expansion relative to the number of shares outstanding.
- Price-to-Sales (P/S) Ratio
- The P/S ratio demonstrates volatility across the years. Starting at a high of 17.5 in 2012, it declines sharply to 7.49 by 2017. From 2017 onwards, the ratio fluctuates between approximately 6.66 and 13.62, with a notable increase after 2020, coinciding with the rise in share price. The elevated P/S ratio in recent years may reflect heightened investor expectations concerning future sales growth or profitability improvements.
- Summary Insights
- Overall, the company's financial data show a strong growth trajectory in both share price and sales per share, reflecting improved operational performance and market valuation. The initial years show some instability in valuation multiples, which stabilize somewhat as sales growth becomes more pronounced. The rising P/S ratio in recent years suggests increased premium placed by the market on the company's sales, potentially due to growth prospects or industry positioning. This combination of rising share price and sales per share, along with fluctuating but generally elevated P/S ratios, points to a maturing market perception aligning increasing revenues with equity valuation.
Comparison to Competitors
Palo Alto Networks Inc., P/S, 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. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sep 6, 2024 | 13.62 | 3.48 | 8.27 | 15.26 | 26.10 | 16.12 | 29.64 | 3.81 | 10.72 | 12.82 | 7.44 | 102.00 | 8.45 | 18.99 | 12.45 | 9.61 |
| Sep 1, 2023 | 10.87 | 2.98 | 13.88 | 20.02 | 12.81 | 20.19 | 15.36 | 2.73 | 10.72 | 11.60 | 6.63 | 23.27 | 5.84 | 17.52 | 14.75 | 7.71 |
| Sep 6, 2022 | 9.62 | 2.56 | 8.95 | 14.23 | 30.15 | 14.64 | 8.05 | 1.94 | 9.30 | 10.40 | 4.25 | 9.34 | 7.40 | 12.75 | 10.03 | 11.19 |
| Sep 3, 2021 | 10.72 | 4.28 | 14.94 | 12.55 | 48.70 | 49.25 | 8.08 | 1.94 | 16.09 | 12.81 | 5.38 | 15.58 | 9.24 | 19.02 | 13.22 | 13.95 |
| Sep 4, 2020 | 6.66 | 3.26 | 17.04 | 13.85 | 22.79 | 49.57 | 10.38 | 1.47 | 11.78 | 10.85 | 4.33 | 39.86 | 8.88 | 25.66 | 10.08 | 10.65 |
| Sep 9, 2019 | 7.06 | 2.72 | 15.11 | 8.56 | — | 36.28 | 8.28 | 1.63 | 11.05 | 8.38 | 4.74 | — | 9.00 | 19.36 | 6.27 | 14.75 |
| Sep 13, 2018 | 9.75 | 2.35 | 13.23 | 7.53 | — | — | 5.51 | 1.56 | 9.52 | 7.51 | 4.41 | — | 8.89 | 16.63 | 4.10 | 13.73 |
| Sep 7, 2017 | 7.49 | 2.45 | 13.32 | 5.85 | — | — | 4.95 | 1.82 | 6.99 | 6.19 | 5.56 | — | 6.96 | 14.55 | 4.80 | 11.06 |
| Sep 8, 2016 | 9.69 | 2.13 | 9.34 | 4.53 | — | — | 3.97 | 2.12 | 6.17 | 5.13 | 4.45 | — | 7.09 | 10.50 | 3.71 | 12.08 |
| Sep 17, 2015 | 16.88 | 2.11 | 9.27 | 3.73 | — | — | 3.23 | 1.56 | 5.56 | 3.99 | 4.66 | — | 7.82 | 8.69 | 3.07 | 19.97 |
| Sep 18, 2014 | 13.17 | 1.61 | 8.59 | 3.42 | — | — | 2.88 | 1.76 | 5.32 | 4.10 | 4.67 | — | 9.54 | 16.81 | 3.15 | 35.87 |
| Sep 25, 2013 | 8.38 | 1.64 | 7.45 | 2.96 | — | — | 2.64 | 1.91 | 4.47 | 3.41 | 3.75 | — | 8.92 | 22.61 | 3.12 | 37.91 |
| Oct 4, 2012 | 17.50 | 1.54 | 4.30 | 3.02 | — | — | 2.13 | 2.12 | 4.27 | 3.32 | 3.66 | — | 8.91 | 19.84 | 2.76 | — |
Based on: 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/S, long-term trends, comparison to sector (software & services)
| Palo Alto Networks Inc. | Software & Services | |
|---|---|---|
| Sep 6, 2024 | 13.62 | 10.35 |
| Sep 1, 2023 | 10.87 | 8.82 |
| Sep 6, 2022 | 9.62 | 7.49 |
| Sep 3, 2021 | 10.72 | 9.56 |
| Sep 4, 2020 | 6.66 | 7.75 |
| Sep 9, 2019 | 7.06 | 6.12 |
| Sep 13, 2018 | 9.75 | 5.24 |
| Sep 7, 2017 | 7.49 | 4.65 |
| Sep 8, 2016 | 9.69 | 3.95 |
| Sep 17, 2015 | 16.88 | 3.41 |
| Sep 18, 2014 | 13.17 | 3.34 |
| Sep 25, 2013 | 8.38 | 2.89 |
| Oct 4, 2012 | 17.50 | 2.78 |
Based on: 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/S, long-term trends, comparison to industry (information technology)
| Palo Alto Networks Inc. | Information Technology | |
|---|---|---|
| Sep 6, 2024 | 13.62 | 9.32 |
| Sep 1, 2023 | 10.87 | 7.35 |
| Sep 6, 2022 | 9.62 | 6.02 |
| Sep 3, 2021 | 10.72 | 7.01 |
| Sep 4, 2020 | 6.66 | 6.13 |
| Sep 9, 2019 | 7.06 | 4.63 |
| Sep 13, 2018 | 9.75 | 4.31 |
| Sep 7, 2017 | 7.49 | 4.19 |
| Sep 8, 2016 | 9.69 | 3.47 |
| Sep 17, 2015 | 16.88 | 3.04 |
| Sep 18, 2014 | 13.17 | 3.32 |
| Sep 25, 2013 | 8.38 | 2.86 |
| Oct 4, 2012 | 17.50 | 2.88 |
Based on: 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).