What is Palo Alto Networks Inc worth?
With the base-case assumptions below, a discounted cash flow model on Palo Alto Networks Inc's reported free cash flow gives $181.16 per share. The share price was $374.74 on September 25, 2026, 107% above that value.
Inputs from the filings
Three sets of assumptions
| Case | Growth yrs 1-5 | Discount rate | Value per share | Value vs price |
|---|---|---|---|---|
| Bear | 10.0% | 10.0% | $111.36 | -70% |
| Base | 15.0% | 9.0% | $181.16 | -52% |
| Bull | 20.0% | 8.0% | $311.12 | -17% |
Sensitivity: base case value per share
| 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | |
|---|---|---|---|---|---|
| 7.0% | $234.00 | $250.48 | $270.62 | $295.79 | $328.15 |
| 8.0% | $194.30 | $204.99 | $217.62 | $232.77 | $251.29 |
| 9.0% | $165.42 | $172.73 | $181.16 | $190.99 | $202.62 |
| 10.0% | $143.52 | $148.72 | $154.61 | $161.33 | $169.10 |
| 11.0% | $126.39 | $130.20 | $134.45 | $139.24 | $144.67 |
Where the presets come from
Base: years 1 to 5 grow at Palo Alto Networks Inc's revenue growth rate over the last 5 fiscal years (22.0% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.
Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.
Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.
This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.
Adjust the assumptions
Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.
Adjust the assumptions