Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Palo Alto Networks Inc., current price multiples
| 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. | Software & Services | Information Technology | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||
| Current share price (P) | $374.57 | |||||||||||||||||||
| No. shares of common stock outstanding | 818,000,000 | |||||||||||||||||||
| Growth rate (g) | 17.35% | |||||||||||||||||||
| Earnings per share (EPS) | $0.38 | |||||||||||||||||||
| Next year expected EPS | $0.44 | |||||||||||||||||||
| Operating profit per share | $0.85 | |||||||||||||||||||
| Sales per share | $14.03 | |||||||||||||||||||
| Book value per share (BVPS) | $33.61 | |||||||||||||||||||
| Valuation Ratios (Price Multiples) | ||||||||||||||||||||
| Price to earnings (P/E) | 998.04 | 14.65 | 13.28 | 33.00 | 75.24 | 824.79 | 20.58 | 17.11 | 27.65 | 26.56 | 273.56 | 25.75 | 81.04 | 58.87 | 65.46 | 38.24 | 56.56 | |||
| Price to next year expected earnings | 850.51 | 12.57 | 9.68 | 22.44 | 59.72 | 812.62 | 23.05 | 15.32 | 21.97 | 9.89 | 270.58 | 24.27 | 71.28 | 50.72 | 63.07 | 31.48 | 45.05 | |||
| Price-earnings-growth (PEG) | 57.54 | 0.89 | 0.36 | 0.70 | 2.90 | 550.77 | — | 1.46 | 1.07 | 0.16 | 248.46 | 4.24 | 5.92 | 3.66 | 17.29 | 1.78 | 2.21 | |||
| Price to operating profit (P/OP) | 440.86 | 11.00 | 10.88 | 26.50 | 55.92 | — | 18.44 | 13.28 | 23.82 | 21.89 | 314.38 | 23.05 | 77.66 | 85.72 | 62.92 | 30.64 | 47.19 | |||
| Price to sales (P/S) | 26.69 | 1.61 | 3.98 | 20.07 | 15.75 | 25.93 | 3.23 | 3.64 | 11.14 | 6.70 | 99.33 | 4.62 | 10.67 | 11.12 | 4.75 | 10.01 | 14.52 | |||
| Price to book value (P/BV) | 11.14 | 3.61 | 8.15 | 51.53 | 15.24 | 23.81 | 6.68 | 4.11 | 8.36 | 10.61 | 60.18 | 3.25 | 10.93 | 2.77 | 5.81 | 10.29 | 19.45 | |||
Based on: 10-K (reporting date: 2026-07-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Palo Alto Networks Inc., historical price multiples
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 valuation multiples exhibit significant volatility and divergent trends between 2021 and 2026, characterized by an aggressive expansion of earnings and sales multiples alongside a consistent contraction in the book value multiple after 2022.
- Earnings and Operating Profit Multiples
- The Price to Earnings (P/E) ratio demonstrates extreme fluctuations, decreasing from 170.35 in 2023 to 42.42 in 2024, before ascending sharply to 112.39 in 2025 and reaching a peak of 901.90 in 2026. A similar pattern is observed in the Price to Operating Profit (P/OP) ratio, which trended downward from 193.40 in 2023 to 102.53 in 2025, followed by a substantial surge to 398.40 in 2026. These movements suggest a significant decoupling of market price from current earnings and operating profit in the final period.
- Revenue Valuation
- The Price to Sales (P/S) ratio remained relatively stable between 2021 and 2023, fluctuating between 9.62 and 10.87. However, a clear upward trend emerged from 2024 onward, with the ratio climbing to 13.82 in 2025 and increasing sharply to 24.12 by 2026. This indicates an increasing market premium attributed to each unit of revenue generated.
- Book Value Valuation
- The Price to Book Value (P/BV) ratio experienced a dramatic spike to 252.00 in 2022. Following this peak, a consistent and steep downward trajectory is observed, with the ratio falling to 42.84 in 2023 and continuing to decline annually to 10.07 by 2026. This represents a significant contraction in the premium the market is willing to pay over the company's accounting book value.
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Price to Earnings (P/E)
Palo Alto Networks Inc., historical P/E 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 | 818,000,000 | 668,900,000 | 651,200,000 | 617,189,208 | 598,427,616 | 584,436,678 | |
| Selected Financial Data (US$) | |||||||
| Net income (loss) (in millions) | 307) | 1,134) | 2,578) | 440) | (267) | (499) | |
| Earnings per share (EPS)2 | 0.38 | 1.70 | 3.96 | 0.71 | -0.45 | -0.85 | |
| Share price1, 3 | 338.49 | 190.52 | 167.91 | 121.36 | 88.43 | 78.04 | |
| Valuation Ratio | |||||||
| P/E ratio4 | 901.90 | 112.39 | 42.42 | 170.35 | — | — | |
| Benchmarks | |||||||
| P/E Ratio, Competitors5 | |||||||
| Accenture PLC | — | 19.47 | 31.07 | 27.81 | 22.93 | 36.58 | |
| Adobe Inc. | — | 17.51 | 31.98 | 49.64 | 33.15 | 48.90 | |
| AppLovin Corp. | — | 41.68 | 68.97 | 56.56 | — | 472.35 | |
| Cadence Design Systems Inc. | — | 72.92 | 67.09 | 78.64 | 59.70 | 53.88 | |
| Datadog Inc. | — | 398.52 | 235.49 | 884.97 | — | — | |
| International Business Machines Corp. | — | 20.31 | 39.68 | 22.50 | 71.56 | 19.40 | |
| Intuit Inc. | 18.37 | 48.19 | 58.94 | 64.61 | 57.31 | 75.17 | |
| Microsoft Corp. | 21.68 | 37.46 | 35.67 | 33.96 | 28.34 | 35.14 | |
| Oracle Corp. | 29.69 | 47.60 | 37.63 | 38.96 | 26.85 | 15.84 | |
| Palantir Technologies Inc. | — | 195.77 | 632.38 | 246.77 | — | — | |
| Salesforce Inc. | 23.88 | 45.28 | 71.24 | 879.57 | 135.68 | 48.20 | |
| ServiceNow Inc. | — | 69.85 | 146.40 | 90.80 | 284.29 | 487.70 | |
| Synopsys Inc. | — | 69.11 | 33.69 | 70.08 | 51.76 | 73.37 | |
| Workday Inc. | 56.01 | 122.85 | 50.53 | — | 1,957.29 | — | |
| P/E Ratio, Sector | |||||||
| Software & Services | — | 39.53 | 41.55 | 40.00 | 34.25 | 37.62 | |
| P/E Ratio, Industry | |||||||
| Information Technology | — | 40.70 | 45.43 | 36.13 | 26.99 | 29.70 | |
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.
2 2026 Calculation
EPS = Net income (loss) ÷ No. shares of common stock outstanding
= 307,000,000 ÷ 818,000,000 = 0.38
3 Closing price as at the filing date of Palo Alto Networks Inc. Annual Report.
4 2026 Calculation
P/E ratio = Share price ÷ EPS
= 338.49 ÷ 0.38 = 901.90
5 Click competitor name to see calculations.
The financial trajectory from 2021 to 2026 is characterized by a consistent increase in share price coupled with significant volatility in earnings per share (EPS), leading to extreme fluctuations in the price-to-earnings (P/E) ratio.
- Earnings Per Share (EPS) Performance
- A transition from negative to positive earnings occurred between 2021 and 2023. EPS reached a peak of 3.96 US$ in 2024, followed by a notable contraction to 1.70 US$ in 2025 and a further decline to 0.38 US$ by 2026.
- Price-to-Earnings (P/E) Ratio Volatility
- The P/E ratio was not applicable during the initial years of negative earnings. Upon achieving profitability in 2023, the ratio was 170.35, before compressing to 42.42 in 2024 as earnings grew. Subsequently, the ratio expanded rapidly to 112.39 in 2025 and surged to 901.90 by 2026.
- Valuation Divergence
- A sharp divergence between market price and earnings is observed in the final period. While the share price experienced its most significant increase, rising to 338.49 US$ in 2026, the simultaneous collapse in EPS created a highly inflated valuation multiple. This pattern indicates that the market price has decoupled from current earnings performance.
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Price to Operating Profit (P/OP)
Palo Alto Networks Inc., historical P/OP 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 | 818,000,000 | 668,900,000 | 651,200,000 | 617,189,208 | 598,427,616 | 584,436,678 | |
| Selected Financial Data (US$) | |||||||
| Operating income (loss) (in millions) | 695) | 1,243) | 684) | 387) | (189) | (304) | |
| Operating profit per share2 | 0.85 | 1.86 | 1.05 | 0.63 | -0.32 | -0.52 | |
| Share price1, 3 | 338.49 | 190.52 | 167.91 | 121.36 | 88.43 | 78.04 | |
| Valuation Ratio | |||||||
| P/OP ratio4 | 398.40 | 102.53 | 159.88 | 193.40 | — | — | |
| Benchmarks | |||||||
| P/OP Ratio, Competitors5 | |||||||
| Accenture PLC | — | 14.62 | 23.52 | 21.69 | 16.83 | 28.35 | |
| Adobe Inc. | — | 14.34 | 26.38 | 40.52 | 25.85 | 40.64 | |
| AppLovin Corp. | — | 33.47 | 58.16 | 31.12 | — | 111.61 | |
| Cadence Design Systems Inc. | — | 54.20 | 52.42 | 65.43 | 47.21 | 48.13 | |
| Datadog Inc. | — | — | 797.11 | — | — | — | |
| International Business Machines Corp. | — | 18.20 | 25.48 | 17.99 | 14.35 | 16.23 | |
| Intuit Inc. | 14.26 | 37.87 | 48.11 | 49.04 | 46.05 | 62.00 | |
| Microsoft Corp. | 18.68 | 29.68 | 28.73 | 27.76 | 24.72 | 30.79 | |
| Oracle Corp. | 24.47 | 33.50 | 25.65 | 25.30 | 16.51 | 14.31 | |
| Palantir Technologies Inc. | — | 224.99 | 941.61 | 431.61 | — | — | |
| Salesforce Inc. | 21.38 | 38.94 | 58.80 | 177.62 | 357.52 | 431.39 | |
| ServiceNow Inc. | — | 66.94 | 152.95 | 206.26 | 260.27 | 436.46 | |
| Synopsys Inc. | — | 100.63 | 56.25 | 67.90 | 43.85 | 75.64 | |
| Workday Inc. | 53.84 | 155.71 | 381.31 | — | — | — | |
| P/OP Ratio, Sector | |||||||
| Software & Services | — | 31.68 | 33.84 | 32.03 | 27.14 | 33.74 | |
| P/OP Ratio, Industry | |||||||
| Information Technology | — | 33.95 | 35.16 | 30.04 | 22.89 | 26.21 | |
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.
2 2026 Calculation
Operating profit per share = Operating income (loss) ÷ No. shares of common stock outstanding
= 695,000,000 ÷ 818,000,000 = 0.85
3 Closing price as at the filing date of Palo Alto Networks Inc. Annual Report.
4 2026 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 338.49 ÷ 0.85 = 398.40
5 Click competitor name to see calculations.
The share price exhibits a consistent upward trajectory, rising from 78.04 US$ in 2021 to 338.49 US$ in 2026. Parallel to this growth, operating profit per share transitioned from a deficit position in 2021 and 2022 to profitability in 2023, reaching a peak of 1.86 US$ in 2025 before experiencing a contraction in 2026.
- Price to Operating Profit (P/OP) Evolution
- The P/OP ratio was not applicable during 2021 and 2022 due to negative operating profits. Following the shift to profitability in 2023, the ratio entered a phase of compression, decreasing from 193.40 to 102.53 by 2025. This downward trend indicates that operating profit growth outpaced the increase in share price during this interval, leading to a more favorable valuation multiple.
- Valuation Divergence in 2026
- A sharp expansion of the P/OP ratio to 398.40 is observed in 2026. This spike is the result of a significant increase in share price combined with a simultaneous decline in operating profit per share to 0.85 US$. The resulting multiple reflects a substantial valuation premium relative to the operating performance recorded in the final period.
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Price to Sales (P/S)
Palo Alto Networks Inc., historical P/S calculation, comparison to benchmarks
| Jul 31, 2026 | Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 818,000,000 | 668,900,000 | 651,200,000 | 617,189,208 | 598,427,616 | 584,436,678 | |
| Selected Financial Data (US$) | |||||||
| Revenue (in millions) | 11,480) | 9,222) | 8,028) | 6,893) | 5,502) | 4,256) | |
| Sales per share2 | 14.03 | 13.79 | 12.33 | 11.17 | 9.19 | 7.28 | |
| Share price1, 3 | 338.49 | 190.52 | 167.91 | 121.36 | 88.43 | 78.04 | |
| Valuation Ratio | |||||||
| P/S ratio4 | 24.12 | 13.82 | 13.62 | 10.87 | 9.62 | 10.72 | |
| Benchmarks | |||||||
| P/S Ratio, Competitors5 | |||||||
| Accenture PLC | — | 2.15 | 3.48 | 2.98 | 2.56 | 4.28 | |
| Adobe Inc. | — | 5.25 | 8.27 | 13.88 | 8.95 | 14.94 | |
| AppLovin Corp. | — | 25.35 | 23.14 | 6.14 | 1.80 | 5.99 | |
| Cadence Design Systems Inc. | — | 15.27 | 15.26 | 20.02 | 14.23 | 12.55 | |
| Datadog Inc. | — | 12.53 | 16.12 | 20.19 | 14.64 | 49.25 | |
| International Business Machines Corp. | — | 3.19 | 3.81 | 2.73 | 1.94 | 1.94 | |
| Intuit Inc. | 3.91 | 9.90 | 10.72 | 10.72 | 9.30 | 16.09 | |
| Microsoft Corp. | 8.74 | 13.54 | 12.82 | 11.60 | 10.40 | 12.81 | |
| Oracle Corp. | 7.49 | 10.32 | 7.44 | 6.63 | 4.25 | 5.38 | |
| Palantir Technologies Inc. | — | 71.09 | 102.00 | 23.27 | 9.34 | 15.58 | |
| Salesforce Inc. | 4.29 | 7.40 | 8.45 | 5.84 | 7.40 | 9.24 | |
| ServiceNow Inc. | — | 9.20 | 18.99 | 17.52 | 12.75 | 19.02 | |
| Synopsys Inc. | — | 13.05 | 12.45 | 14.75 | 10.03 | 13.22 | |
| Workday Inc. | 4.06 | 7.65 | 9.61 | 7.71 | 11.19 | 13.95 | |
| P/S Ratio, Sector | |||||||
| Software & Services | — | 10.35 | 10.31 | 8.76 | 7.38 | 9.45 | |
| P/S Ratio, Industry | |||||||
| Information Technology | — | 10.44 | 9.30 | 7.31 | 6.01 | 6.97 | |
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.
2 2026 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= 11,480,000,000 ÷ 818,000,000 = 14.03
3 Closing price as at the filing date of Palo Alto Networks Inc. Annual Report.
4 2026 Calculation
P/S ratio = Share price ÷ Sales per share
= 338.49 ÷ 14.03 = 24.12
5 Click competitor name to see calculations.
An analysis of the valuation multiples reveals a significant expansion in the Price to Sales (P/S) ratio over the observed period. While the ratio remained relatively stable between 2021 and 2023, a pronounced upward trajectory emerged starting in 2024, culminating in a substantial spike by July 31, 2026.
- Share Price Evolution
- The share price exhibited consistent and accelerating growth, rising from 78.04 USD in 2021 to 338.49 USD in 2026. The most aggressive appreciation occurred between 2025 and 2026, where the price increased by approximately 77% within a single year.
- Sales per Share Performance
- Revenue efficiency, measured as sales per share, demonstrated a steady upward trend, increasing from 7.28 USD in 2021 to 14.03 USD in 2026. However, the growth rate of sales per share decelerated in the final period, showing a marginal increase between 2025 and 2026 compared to the more robust gains observed from 2021 to 2023.
- Price to Sales (P/S) Ratio Analysis
- The P/S ratio experienced a slight contraction from 10.72 in 2021 to 9.62 in 2022 before beginning a sustained climb. The ratio reached 13.82 by 2025 and surged to 24.12 by 2026. This divergence indicates that the market valuation grew at a rate far exceeding the growth in underlying revenue per share, reflecting a significant increase in the multiple investors were willing to pay for each dollar of sales.
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Price to Book Value (P/BV)
Palo Alto Networks Inc., historical P/BV 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 | 818,000,000 | 668,900,000 | 651,200,000 | 617,189,208 | 598,427,616 | 584,436,678 | |
| Selected Financial Data (US$) | |||||||
| Stockholders’ equity (in millions) | 27,492) | 7,824) | 5,170) | 1,748) | 210) | 635) | |
| Book value per share (BVPS)2 | 33.61 | 11.70 | 7.94 | 2.83 | 0.35 | 1.09 | |
| Share price1, 3 | 338.49 | 190.52 | 167.91 | 121.36 | 88.43 | 78.04 | |
| Valuation Ratio | |||||||
| P/BV ratio4 | 10.07 | 16.29 | 21.15 | 42.84 | 252.00 | 71.88 | |
| Benchmarks | |||||||
| P/BV Ratio, Competitors5 | |||||||
| Accenture PLC | — | 4.79 | 7.98 | 7.44 | 7.13 | 11.06 | |
| Adobe Inc. | — | 10.74 | 12.61 | 16.31 | 11.22 | 15.94 | |
| AppLovin Corp. | — | 65.10 | 99.97 | 16.06 | 2.67 | 7.83 | |
| Cadence Design Systems Inc. | — | 14.77 | 15.15 | 24.05 | 18.46 | 13.68 | |
| Datadog Inc. | — | 11.50 | 15.94 | 21.22 | 17.39 | 48.66 | |
| International Business Machines Corp. | — | 6.59 | 8.75 | 7.49 | 5.34 | 5.90 | |
| Intuit Inc. | 4.42 | 9.46 | 9.47 | 8.92 | 7.20 | 15.71 | |
| Microsoft Corp. | 6.56 | 11.11 | 11.71 | 11.92 | 12.38 | 15.16 | |
| Oracle Corp. | 11.86 | 28.96 | 45.25 | 308.71 | — | 41.57 | |
| Palantir Technologies Inc. | — | 43.07 | 58.42 | 14.90 | 6.94 | 10.48 | |
| Salesforce Inc. | 3.01 | 4.59 | 4.94 | 3.13 | 3.37 | 4.73 | |
| ServiceNow Inc. | — | 9.42 | 21.71 | 20.60 | 18.36 | 30.36 | |
| Synopsys Inc. | — | 3.25 | 8.48 | 14.02 | 9.24 | 10.50 | |
| Workday Inc. | 4.97 | 7.15 | 8.63 | 8.58 | 12.68 | 18.38 | |
| P/BV Ratio, Sector | |||||||
| Software & Services | — | 10.64 | 11.97 | 11.39 | 10.54 | 13.51 | |
| P/BV Ratio, Industry | |||||||
| Information Technology | — | 13.99 | 13.09 | 11.29 | 10.25 | 12.35 | |
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.
2 2026 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 27,492,000,000 ÷ 818,000,000 = 33.61
3 Closing price as at the filing date of Palo Alto Networks Inc. Annual Report.
4 2026 Calculation
P/BV ratio = Share price ÷ BVPS
= 338.49 ÷ 33.61 = 10.07
5 Click competitor name to see calculations.
The financial data indicates a significant transformation in the valuation profile of the equity from July 2021 through July 2026, characterized by a consistent increase in market price and a substantial strengthening of the underlying book value.
- Share Price Performance
- A sustained upward trajectory is observed in the share price, which rose from 78.04 US$ in July 2021 to 338.49 US$ by July 2026. This trend reflects a continuous expansion in market valuation over the analyzed period.
- Book Value per Share (BVPS) Evolution
- The book value per share experienced initial volatility, declining to a minimum of 0.35 US$ in July 2022. However, this was followed by a period of aggressive growth, with the BVPS increasing to 2.83 US$ in 2023 and accelerating to 33.61 US$ by July 2026. This indicates a significant accumulation of net assets over time.
- Price to Book Value (P/BV) Ratio Analysis
- The P/BV ratio exhibited an extreme peak of 252.00 in July 2022, suggesting a period where the market price was decoupled from the tangible book value. Subsequent to this peak, a consistent contraction of the multiple is evident, falling to 42.84 in 2023, 21.15 in 2024, 16.29 in 2025, and reaching a low of 10.07 by July 2026. This downward trend in the ratio, occurring despite a rising share price, is driven by the rapid growth of the book value per share, resulting in a valuation that is more closely aligned with the company's balance sheet strength.
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