Price to FCFE (P/FCFE)
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- Income Statement
- Statement of Comprehensive Income
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Solvency Ratios
- Analysis of Geographic Areas
- Dividend Discount Model (DDM)
- Current Ratio since 2012
- Price to Operating Profit (P/OP) since 2012
- Analysis of Revenues
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Free Cash Flow to Equity (FCFE)
Palo Alto Networks Inc., FCFE calculation
US$ in millions
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).
The financial trajectory from 2021 to 2026 demonstrates a consistent expansion in cash generation capabilities, characterized by a steady increase in operational efficiency and a subsequent recovery in equity-available cash flows.
- Net Cash Provided by Operating Activities
- A sustained upward trend is evident in operating cash flows, which grew from 1,503 million USD in 2021 to a projected 4,553 million USD by 2026. This represents a continuous year-over-year increase, indicating a strong and scalable core operational model capable of generating increasing levels of liquidity.
- Free Cash Flow to Equity (FCFE) Performance
- FCFE exhibits a more volatile pattern compared to operating cash flows. While the metric grew from 1,386 million USD in 2021 to 1,791 million USD in 2022, a significant contraction occurred in 2023, where FCFE dropped to 939 million USD. Following this decline, a robust recovery is observed, with values rising to 2,067 million USD in 2024 and reaching a projected 3,963 million USD by 2026.
- Divergence Analysis (2023 Fiscal Year)
- A notable divergence occurred in 2023, where net cash from operating activities increased substantially to 2,778 million USD, yet FCFE decreased by approximately 47.5% relative to the previous year. This inverse relationship suggests a significant allocation of capital toward capital expenditures or debt repayments during this period, which temporarily reduced the cash available to equity holders despite stronger operational performance.
- Long-term Cash Flow Conversion
- From 2024 through the 2026 projections, FCFE is expected to track more closely with operating cash flows. The projected acceleration in FCFE toward 2026 suggests a transition toward higher capital efficiency and an increased capacity to return value to shareholders or fund internal growth without relying on external financing.
Price to FCFE Ratio, Current
Palo Alto Networks Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | |
| FCFE per share | |
| Current share price (P) | |
| Valuation Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Accenture PLC | |
| Adobe Inc. | |
| AppLovin Corp. | |
| Cadence Design Systems Inc. | |
| Datadog Inc. | |
| International Business Machines Corp. | |
| Intuit Inc. | |
| Microsoft Corp. | |
| Oracle Corp. | |
| Palantir Technologies Inc. | |
| Salesforce Inc. | |
| ServiceNow Inc. | |
| Synopsys Inc. | |
| Workday Inc. | |
| P/FCFE, Sector | |
| Software & Services | |
| P/FCFE, Industry | |
| Information Technology | |
Based on: 10-K (reporting date: 2026-07-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Palo Alto Networks Inc., historical P/FCFE calculation, comparison to benchmarks
| Jul 31, 2026 | Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||
| Selected Financial Data (US$) | |||||||
| Free cash flow to equity (FCFE) (in millions)2 | |||||||
| FCFE per share3 | |||||||
| Share price1, 4 | |||||||
| Valuation Ratio | |||||||
| P/FCFE5 | |||||||
| Benchmarks | |||||||
| P/FCFE, Competitors6 | |||||||
| 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. | |||||||
| P/FCFE, Sector | |||||||
| Software & Services | |||||||
| P/FCFE, Industry | |||||||
| Information Technology | |||||||
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).
1 Data adjusted for splits and stock dividends.
3 2026 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =
4 Closing price as at the filing date of Palo Alto Networks Inc. Annual Report.
5 2026 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =
6 Click competitor name to see calculations.
The financial trajectory from July 2021 to July 2026 is characterized by a substantial increase in market valuation and fluctuating free cash flow to equity (FCFE) per share, resulting in significant volatility in the P/FCFE ratio.
- Share Price Appreciation
- A consistent and aggressive upward trend is observed in the share price, which climbed from 78.04 US$ in 2021 to 338.49 US$ by 2026. This indicates a strong and sustained expansion in the market's valuation of the equity over the analyzed period.
- FCFE per Share Performance
- Free cash flow to equity per share exhibited an uneven growth pattern. Although the value increased from 2.37 US$ in 2021 to 4.84 US$ in 2026, a notable contraction occurred in 2023, where FCFE per share fell to 1.52 US$ from 2.99 US$ in the prior year. A recovery phase followed, with values increasing steadily from 2024 through 2026.
- P/FCFE Ratio Volatility
- The P/FCFE ratio experienced high variance, moving from a relatively stable range of approximately 30x in 2021 and 2022 to a peak of 79.75 in 2023. This spike was primarily driven by the compression of FCFE per share during a period of rising share prices. While the ratio moderated to the 50x–53x range between 2024 and 2025, it rose again to 69.87 by 2026, suggesting that the market maintained a high premium on the company's cash flow generation capabilities.