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 millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Sep 10, 2026 | 24.12 | = | 338.49 | ÷ | 14.03 | 14.03 | = | 11,480 | ÷ | 818,000,000 | |
| Aug 29, 2025 | 13.82 | = | 190.52 | ÷ | 13.79 | 13.79 | = | 9,222 | ÷ | 668,900,000 | |
| Sep 6, 2024 | 13.62 | = | 167.91 | ÷ | 12.33 | 12.33 | = | 8,028 | ÷ | 651,200,000 | |
| Sep 1, 2023 | 10.87 | = | 121.36 | ÷ | 11.17 | 11.17 | = | 6,893 | ÷ | 617,189,208 | |
| Sep 6, 2022 | 9.62 | = | 88.43 | ÷ | 9.19 | 9.19 | = | 5,502 | ÷ | 598,427,616 | |
| Sep 3, 2021 | 10.72 | = | 78.04 | ÷ | 7.28 | 7.28 | = | 4,256 | ÷ | 584,436,678 | |
| Sep 4, 2020 | 6.66 | = | 39.28 | ÷ | 5.89 | 5.89 | = | 3,408 | ÷ | 578,239,764 | |
| Sep 9, 2019 | 7.06 | = | 35.20 | ÷ | 4.98 | 4.98 | = | 2,900 | ÷ | 581,942,880 | |
| Sep 13, 2018 | 9.75 | = | 39.35 | ÷ | 4.04 | 4.04 | = | 2,273 | ÷ | 562,937,910 | |
| Sep 7, 2017 | 7.49 | = | 23.95 | ÷ | 3.20 | 3.20 | = | 1,762 | ÷ | 551,054,184 | |
| Sep 8, 2016 | 9.69 | = | 24.50 | ÷ | 2.53 | 2.53 | = | 1,379 | ÷ | 545,102,742 | |
| Sep 17, 2015 | 16.88 | = | 30.72 | ÷ | 1.82 | 1.82 | = | 928 | ÷ | 510,053,352 | |
| Sep 18, 2014 | 13.17 | = | 16.49 | ÷ | 1.25 | 1.25 | = | 598 | ÷ | 477,770,826 | |
| Sep 25, 2013 | 8.38 | = | 7.72 | ÷ | 0.92 | 0.92 | = | 396 | ÷ | 430,002,978 | |
| Oct 4, 2012 | 17.50 | = | 10.96 | ÷ | 0.63 | 0.63 | = | 255 | ÷ | 407,363,634 |
Based on: 10-K (reporting date: 2026-07-31), 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 financial trajectory from 2012 to 2026 is characterized by consistent growth in fundamental revenue metrics and significant volatility in market valuation multiples. While sales per share have maintained a steady upward climb, the Price-to-Sales (P/S) ratio has undergone several distinct phases of expansion and contraction.
- Revenue Generation Trends
- Sales per share demonstrate a continuous and linear increase over the analyzed period, rising from 0.63 US$ in 2012 to 14.03 US$ by 2026. This indicates a sustained ability to grow top-line revenue relative to the number of shares outstanding, showing no year-over-year declines throughout the fourteen-year span.
- Valuation Multiple Volatility
- The P/S ratio exhibits three primary phases. An initial period of high volatility occurred between 2012 and 2015, where the ratio fluctuated between a high of 17.50 and a low of 8.38. This was followed by a period of valuation compression from 2016 to 2020, during which the ratio reached its historical minimum of 6.66 in 2020, suggesting a period where share price growth lagged behind revenue growth.
- Recent Valuation Expansion
- Starting in 2021, a strong upward trend in the P/S ratio is observed, accelerating sharply between 2024 and 2026. The ratio climbed from 10.72 in 2021 to a peak of 24.12 in 2026. This expansion indicates that the market has begun assigning a significantly higher premium to each dollar of sales, with the share price increasing at a rate that far exceeds the growth rate of sales per share.
- Correlation Between Share Price and Sales
- While both share price and sales per share increased over the long term, the relationship is non-linear. The share price rose from 10.96 US$ to 338.49 US$, a growth factor of approximately 30.8x, while sales per share grew from 0.63 US$ to 14.03 US$, a growth factor of approximately 22.3x. This divergence explains the net increase in the P/S ratio over the total duration of the analysis.
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Comparison to Competitors
Palo Alto Networks Inc., P/S, long-term trends, comparison to competitors
| Palo Alto Networks Inc. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | Datadog Inc. | International Business Machines Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sep 10, 2026 | 24.12 | — | — | — | — | — | — | 3.91 | 8.74 | 7.49 | — | 4.29 | — | — | 4.06 |
| Aug 29, 2025 | 13.82 | 2.15 | 5.25 | 25.35 | 15.27 | 12.53 | 3.19 | 9.90 | 13.54 | 10.32 | 71.09 | 7.40 | 9.20 | 13.05 | 7.65 |
| Sep 6, 2024 | 13.62 | 3.48 | 8.27 | 23.14 | 15.26 | 16.12 | 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 | 6.14 | 20.02 | 20.19 | 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 | 1.80 | 14.23 | 14.64 | 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 | 5.99 | 12.55 | 49.25 | 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 | 49.57 | 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 | 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 | — | 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 | — | 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 | — | 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 | — | 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 | — | 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 | — | 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 | — | 2.12 | 4.27 | 3.32 | 3.66 | — | 8.91 | 19.84 | 2.76 | — |
Based on: 10-K (reporting date: 2026-07-31), 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/S, long-term trends, comparison to sector (software & services)
| Palo Alto Networks Inc. | Software & Services | |
|---|---|---|
| Sep 10, 2026 | 24.12 | — |
| Aug 29, 2025 | 13.82 | 10.35 |
| Sep 6, 2024 | 13.62 | 10.31 |
| Sep 1, 2023 | 10.87 | 8.76 |
| Sep 6, 2022 | 9.62 | 7.38 |
| Sep 3, 2021 | 10.72 | 9.45 |
| Sep 4, 2020 | 6.66 | 7.72 |
| Sep 9, 2019 | 7.06 | 6.11 |
| 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 | 2.79 |
Based on: 10-K (reporting date: 2026-07-31), 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/S, long-term trends, comparison to industry (information technology)
| Palo Alto Networks Inc. | Information Technology | |
|---|---|---|
| Sep 10, 2026 | 24.12 | — |
| Aug 29, 2025 | 13.82 | 10.44 |
| Sep 6, 2024 | 13.62 | 9.30 |
| Sep 1, 2023 | 10.87 | 7.31 |
| Sep 6, 2022 | 9.62 | 6.01 |
| Sep 3, 2021 | 10.72 | 6.98 |
| Sep 4, 2020 | 6.66 | 6.11 |
| Sep 9, 2019 | 7.06 | 4.62 |
| Sep 13, 2018 | 9.75 | 4.31 |
| Sep 7, 2017 | 7.49 | 4.18 |
| Sep 8, 2016 | 9.69 | 3.46 |
| Sep 17, 2015 | 16.88 | 3.03 |
| Sep 18, 2014 | 13.17 | 3.31 |
| Sep 25, 2013 | 8.38 | 2.85 |
| Oct 4, 2012 | 17.50 | 2.88 |
Based on: 10-K (reporting date: 2026-07-31), 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).