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Palo Alto Networks (XTER:5AP) Cyclically Adjusted FCF per Share : €2.46 (As of Apr. 2025)


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What is Palo Alto Networks Cyclically Adjusted FCF per Share?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years.

Palo Alto Networks's adjusted free cash flow per share for the three months ended in Apr. 2025 was €0.705. Add all the adjusted free cash flow per share for the past 10 years together and divide the count will get our Cyclically Adjusted FCF per Share, which is €2.46 for the trailing ten years ended in Apr. 2025.

During the past 12 months, Palo Alto Networks's average Cyclically Adjusted FCF Growth Rate was -100.00% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 27.70% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Cyclically Adjusted FCF Growth Rate using Cyclically Adjusted FCF per Share data.

During the past 13 years, the highest 3-Year average Cyclically Adjusted FCF Growth Rate of Palo Alto Networks was 27.70% per year. The lowest was 27.70% per year. And the median was 27.70% per year.

As of today (2025-05-23), Palo Alto Networks's current stock price is €164.80. Palo Alto Networks's Cyclically Adjusted FCF per Share for the quarter that ended in Apr. 2025 was €2.46. Palo Alto Networks's Cyclically Adjusted Price-to-FCF of today is 66.99.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Palo Alto Networks was 82.65. The lowest was 38.75. And the median was 61.53.


Palo Alto Networks Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Palo Alto Networks's Cyclically Adjusted FCF per Share can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Palo Alto Networks Cyclically Adjusted FCF per Share Chart

Palo Alto Networks Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24
Cyclically Adjusted FCF per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 1.00 1.51 1.77 2.28

Palo Alto Networks Quarterly Data
Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25
Cyclically Adjusted FCF per Share Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.25 2.28 2.45 2.68 2.46

Competitive Comparison of Palo Alto Networks's Cyclically Adjusted FCF per Share

For the Software - Infrastructure subindustry, Palo Alto Networks's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Palo Alto Networks's Cyclically Adjusted Price-to-FCF Distribution in the Software Industry

For the Software industry and Technology sector, Palo Alto Networks's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Palo Alto Networks's Cyclically Adjusted Price-to-FCF falls into.


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Palo Alto Networks Cyclically Adjusted FCF per Share Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years.

What is Cyclically Adjusted FCF per Share? How do we calculate Cyclically Adjusted FCF per Share?

Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the Cyclically Adjusted FCF per Share of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the free cash flow per share from 2001 through 2010.

We adjusted the 2001 free cash flow per share data with the total inflation from 2001 through 2010 to the equivalent free cash flow in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart's free cash flow is $1 a share in 2001, then the 2001's equivalent free cash flow in 2010 is $1.4 a share. If Wal-Mart's free cash flow is $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 free cash flow in 2010 is $1.35. So on and so forth, you get the equivalent free cash flow per share of past 10 years. Then you add them together and divided the sum by the count to get Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, Palo Alto Networks's adjusted Free Cash Flow per Share data for the three months ended in Apr. 2025 was:

Adj_FreeCashFlowPerShare= Free Cash Flow per Share /CPI of Apr. 2025 (Change)*Current CPI (Apr. 2025)
=0.705/135.3468*135.3468
=0.705

Current CPI (Apr. 2025) = 135.3468.

Palo Alto Networks Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201507 0.184 100.691 0.247
201510 0.222 100.346 0.299
201601 0.243 99.957 0.329
201604 0.253 100.947 0.339
201607 0.290 101.524 0.387
201610 0.308 101.988 0.409
201701 0.293 102.456 0.387
201704 0.278 103.167 0.365
201707 0.303 103.278 0.397
201710 0.377 104.070 0.490
201801 0.329 104.578 0.426
201804 0.315 105.708 0.403
201807 0.387 106.324 0.493
201810 0.337 106.695 0.427
201901 0.391 106.200 0.498
201904 0.434 107.818 0.545
201907 0.277 108.250 0.346
201910 0.278 108.577 0.347
202001 0.394 108.841 0.490
202004 0.133 108.173 0.166
202007 0.456 109.318 0.565
202010 0.750 109.861 0.924
202101 0.474 110.364 0.581
202104 0.361 112.673 0.434
202107 0.433 115.183 0.509
202110 0.816 116.696 0.946
202201 0.603 118.619 0.688
202204 0.548 121.978 0.608
202207 0.798 125.002 0.864
202210 1.795 125.734 1.932
202301 0.918 126.223 0.984
202304 0.530 127.992 0.560
202307 0.480 128.974 0.504
202310 2.016 129.810 2.102
202401 0.841 130.124 0.875
202404 0.646 132.289 0.661
202407 0.606 132.708 0.618
202410 1.898 133.182 1.929
202501 0.694 134.029 0.701
202504 0.705 135.347 0.705

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.


Palo Alto Networks  (XTER:5AP) Cyclically Adjusted FCF per Share Explanation

If a company grows much fast than inflation, Cyclically Adjusted FCF per Share may underestimate the company's free cash flow. Cyclically Adjusted Price-to-FCF can seem to be too high even the actual Price-to-Free-Cash-Flow is low.

For the Cyclically Adjusted Price-to-FCF, the free cash flow per share of the past 10 years are inflation-adjusted and averaged. The result is used for P/FCF calculation. Since it looks at the average over the last 10 years, the Cyclically Adjusted Price-to-FCF is also called CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Palo Alto Networks's Cyclically Adjusted Price-to-FCF of today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=164.80/2.46
=66.99

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Palo Alto Networks was 82.65. The lowest was 38.75. And the median was 61.53.


Be Aware

Cyclically Adjusted Price-to-FCF works better for cyclical companies. It gives you a better idea on the company's real free cash flow value.


Palo Alto Networks Cyclically Adjusted FCF per Share Related Terms

Thank you for viewing the detailed overview of Palo Alto Networks's Cyclically Adjusted FCF per Share provided by GuruFocus.com. Please click on the following links to see related term pages.


Palo Alto Networks Business Description

Industry
Address
3000 Tannery Way, Santa Clara, CA, USA, 95054
Palo Alto Networks is a platform-based cybersecurity vendor with product offerings covering network security, cloud security, and security operations. The California-based firm has more than 80,000 enterprise customers across the world, including more than three fourths of the Global 2000.

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