Stock Analysis on Net
Stock Analysis on Net

Palo Alto Networks Inc. (NASDAQ:PANW)

Enterprise Value to EBITDA (EV/EBITDA)

Microsoft Excel

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Palo Alto Networks Inc., EBITDA calculation

US$ in thousands

Microsoft Excel
12 months ended: Jul 31, 2023 Jul 31, 2022 Jul 31, 2021 Jul 31, 2020 Jul 31, 2019 Jul 31, 2018
Net income (loss) 439,700 (267,000) (498,900) (267,000) (81,900) (147,900)
Add: Income tax expense 126,600 59,800 33,900 35,200 7,300 17,700
Earnings before tax (EBT) 566,300 (207,200) (465,000) (231,800) (74,600) (130,200)
Add: Interest expense 27,200 27,400 163,300 88,700 83,900 29,600
Earnings before interest and tax (EBIT) 593,500 (179,800) (301,700) (143,100) 9,300 (100,600)
Add: Depreciation and amortization 282,200 282,600 260,400 206,100 153,800 96,400
Earnings before interest, tax, depreciation and amortization (EBITDA) 875,700 102,800 (41,300) 63,000 163,100 (4,200)

Based on: 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).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. Palo Alto Networks Inc. EBITDA increased from 2021 to 2022 and from 2022 to 2023.

Enterprise Value to EBITDA Ratio, Current

Palo Alto Networks Inc., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in thousands)
Enterprise value (EV) 93,759,306
Earnings before interest, tax, depreciation and amortization (EBITDA) 875,700
Valuation Ratio
EV/EBITDA 107.07
Benchmarks
EV/EBITDA, Competitors1
Accenture PLC 17.51
Adobe Inc. 26.94
International Business Machines Corp. 13.35
Intuit Inc. 44.69
Microsoft Corp. 28.28
Oracle Corp. 21.31
Salesforce Inc. 28.62
ServiceNow Inc. 90.93
Synopsys Inc. 52.49
EV/EBITDA, Sector
Software & Services 27.85
EV/EBITDA, Industry
Information Technology 29.09

Based on: 10-K (reporting date: 2023-07-31).

1 Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.

Enterprise Value to EBITDA Ratio, Historical

Palo Alto Networks Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Jul 31, 2023 Jul 31, 2022 Jul 31, 2021 Jul 31, 2020 Jul 31, 2019 Jul 31, 2018
Selected Financial Data (US$ in thousands)
Enterprise value (EV)1 74,503,582 52,958,262 45,931,416 22,046,667 19,108,380 20,668,307
Earnings before interest, tax, depreciation and amortization (EBITDA)2 875,700 102,800 (41,300) 63,000 163,100 (4,200)
Valuation Ratio
EV/EBITDA3 85.08 515.16 — 349.95 117.16 —
Benchmarks
EV/EBITDA, Competitors4
Accenture PLC 17.26 14.25 23.31 17.46 15.60 13.79
Adobe Inc. 34.07 22.32 35.44 43.06 41.16 37.27
International Business Machines Corp. 14.41 22.17 12.53 12.28 10.23 —
Intuit Inc. 38.71 36.22 51.96 35.70 34.27 31.25
Microsoft Corp. 22.92 20.17 24.59 21.74 17.21 15.67
Oracle Corp. 21.80 17.12 13.78 11.54 11.83 9.50
Salesforce Inc. 38.42 38.91 33.92 49.78 56.71 —
ServiceNow Inc. 96.48 104.30 147.45 220.91 187.17 —
Synopsys Inc. 54.59 36.73 53.43 42.24 26.98 21.34
EV/EBITDA, Sector
Software & Services 24.33 21.63 24.66 22.06 17.87 —
EV/EBITDA, Industry
Information Technology 23.37 18.28 20.37 19.53 14.42 —

Based on: 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).

1 See details »

2 See details »

3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 74,503,582 ÷ 875,700 = 85.08

4 Click competitor name to see calculations.