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Palo Alto NetworksXSWX:PANW -6.13%76 Cyclically Adjusted PB Ratio is 73.71 as of Jul. 22, 2026, which is 24% above its 10-year median of 59.61. GuruFocus rates XSWX:PANW with a GF Score™ of 76/100 and a GF Value™ of CHF168.71. The stock has 7 warning signs investors should review. Among 1,593 Software companies, Palo Alto Networks ranks worse than 99.44% on this metric.
The historical rank and industry rank for Palo Alto Networks's Cyclically Adjusted PB Ratio or its related term are showing as below:
XSWX:PANW'
s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 32.3 Med: 59.61 Max: 96.64
Current: 72.02
During the past years, Palo Alto Networks's highest Cyclically Adjusted PB Ratio was 96.64. The lowest was 32.30. And the median was 59.61.
XSWX:PANW's Cyclically Adjusted PB Ratio is ranked worse than 99.44% of 1593
companies
in the Software industry
Industry Median: 2.26
vs XSWX:PANW: 72.02
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 PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.
Palo Alto Networks's adjusted book value per share data for the three months ended in Apr. 2026 was CHF26.804. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is CHF3.71 for the trailing ten years ended in Apr. 2026.
Shiller PE for Stocks: The True Measure of Stock Valuation
Palo Alto Networks (XSWX:PANW) Cyclically Adjusted PB Ratio Explanation
Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.
Palo Alto Networks Cyclically Adjusted PB Ratio Related Terms
Palo Alto Networks Cyclically Adjusted PB Ratio Historical Data
* Premium members only.
The historical data trend for Palo Alto Networks's Cyclically Adjusted PB Ratio 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.
Palo Alto Networks Cyclically Adjusted PB Ratio Chart
XSWX:PANW vs PLTR, CRWD, FTNT: Cyclically Adjusted PB Ratio Comparison
For the Software - Infrastructure subindustry, Palo Alto Networks's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio 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 Cyclically Adjusted PB Ratio vs Software Industry
For the Software industry and Technology sector, Palo Alto Networks's Cyclically Adjusted PB Ratio distribution charts can be found below:
* The bar in red indicates where Palo Alto Networks's Cyclically Adjusted PB Ratio falls into.
Palo Alto Networks Cyclically Adjusted PB Ratio Calculation
Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.
Palo Alto Networks's Cyclically Adjusted PB Ratio for today is calculated as
* 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.
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.
What does a Cyclically Adjusted PB Ratio of 73.71 mean?
Palo Alto Networks (XSWX:PANW) has a Cyclically Adjusted PB Ratio of 73.71 as of Jul. 22, 2026. Cyclically Adjusted PB Ratio is the ratio of share price to a company's inflation-adjusted book value per share over a 10-year period. View historical data on Palo Alto Networks and its competitors. This is 24% above median its historical median of 59.61. Over the past decade, Palo Alto Networks' Cyclically Adjusted PB Ratio has ranged from 32.30 to 96.64. According to the industry distribution chart, Palo Alto Networks ranks #1584 out of 1593 companies in the Software industry, placing it in the top 99.4%.
Is Palo Alto Networks' Cyclically Adjusted PB Ratio too high?
Palo Alto Networks' current Cyclically Adjusted PB Ratio of 73.71 is 24% above median its 10-year median of 59.61. Over the past 10 years, this metric has ranged from a low of 32.30 to a high of 96.64. The Software industry median Cyclically Adjusted PB Ratio is 2.26. Palo Alto Networks' value of 73.71 is 3161.5% above this industry median. Based on the distribution chart, Palo Alto Networks ranks #1584 out of 1593 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Palo Alto Networks has a GF Score™ of 76/100, reflecting its overall financial health beyond just this single metric.
How does Palo Alto Networks' Cyclically Adjusted PB Ratio compare to PLTR and CRWD?
According to the Software industry distribution chart, Palo Alto Networks ranks #1584 out of 1593 companies for Cyclically Adjusted PB Ratio. This places Palo Alto Networks in the lower half of its industry. The industry median Cyclically Adjusted PB Ratio is 2.26. Palo Alto Networks' value of 73.71 is 3161.5% above this benchmark. Historically, Palo Alto Networks' own Cyclically Adjusted PB Ratio has ranged from 32.30 to 96.64 over the past decade. While the company's 10-year median is 59.61 vs. the industry median of 2.26, Palo Alto Networks has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cyclically Adjusted PB Ratio for a Software company?
The median Cyclically Adjusted PB Ratio among Software companies is 2.26, based on 1,593 companies in the industry. Companies in the top quartile (top 25%) have a Cyclically Adjusted PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cyclically Adjusted PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Palo Alto Networks's current Cyclically Adjusted PB Ratio of 73.71 is 3161.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cyclically Adjusted PB Ratio mean?
A high Cyclically Adjusted PB Ratio can signal that a stock is expensive relative to its fundamentals. Cyclically Adjusted PB Ratio is the ratio of share price to a company's inflation-adjusted book value per share over a 10-year period. View historical data on Palo Alto Networks and its competitors. For the Software industry, the median Cyclically Adjusted PB Ratio is 2.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Palo Alto Networks's current Cyclically Adjusted PB Ratio is 73.71, which is 24% above median its own 10-year median of 59.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Palo Alto Networks stock overvalued right now?
Palo Alto Networks (XSWX:PANW) has a current Cyclically Adjusted PB Ratio of 73.71. The stock's GF Value™ is CHF168.71, compared to a current price of CHF273.45 — trading 62.1% above its estimated fair value. The current Cyclically Adjusted PB Ratio is 73.71, which is 24% above median its 10-year median of 59.61 and 3161.5% above the Software industry median of 2.26. Palo Alto Networks' overall GF Score™ is 76/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cyclically Adjusted PB Ratio calculated?
Cyclically Adjusted PB Ratio is calculated from a company's financial statements. For Palo Alto Networks (XSWX:PANW), the current Cyclically Adjusted PB Ratio is 73.71 as of Jul. 22, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Palo Alto Networks (XSWX:PANW) Overvalued in 2026?
Based on GuruFocus' analysis, Palo Alto Networks stock appears to be overvalued.
The current stock price of CHF273.45 is trading 62.1% above its estimated GF Value™ of CHF168.71.
Key valuation signals for XSWX:PANW:
Cyclically Adjusted PB Ratio: 73.71 (24% above median its 10-year median of 59.61)
GF Value™: CHF168.71 vs. price of CHF273.45 (62.1% above fair value)
Industry Position: 3161.5% above the Software median (#1584 of 1593)
No single metric tells the full story. See the XSWX:PANW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
76GF Score
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