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Palo Alto Networks (MEX:PANW) Cyclically Adjusted Price-to-FCF : 66.78 (As of Jun. 02, 2025)


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What is Palo Alto Networks Cyclically Adjusted Price-to-FCF?

As of today (2025-06-02), Palo Alto Networks's current share price is MXN3675.80. Palo Alto Networks's Cyclically Adjusted FCF per Share for the quarter that ended in Apr. 2025 was MXN55.04. Palo Alto Networks's Cyclically Adjusted Price-to-FCF for today is 66.78.

The historical rank and industry rank for Palo Alto Networks's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

MEX:PANW' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 38.75   Med: 61.7   Max: 82.65
Current: 68.47

During the past years, Palo Alto Networks's highest Cyclically Adjusted Price-to-FCF was 82.65. The lowest was 38.75. And the median was 61.70.

MEX:PANW's Cyclically Adjusted Price-to-FCF is ranked worse than
74.5% of 698 companies
in the Software industry
Industry Median: 29.895 vs MEX:PANW: 68.47

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 adjusted free cash flow per share data for the three months ended in Apr. 2025 was MXN15.520. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is MXN55.04 for the trailing ten years ended in Apr. 2025.

Shiller PE for Stocks: The True Measure of Stock Valuation


Palo Alto Networks Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Palo Alto Networks's Cyclically Adjusted Price-to-FCF 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 Price-to-FCF Chart

Palo Alto Networks Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 56.30 53.35 63.32 65.99

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 Price-to-FCF 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 61.15 65.99 67.82 67.66 66.52

Competitive Comparison of Palo Alto Networks's Cyclically Adjusted Price-to-FCF

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 Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF 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 Price-to-FCF.

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

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=3675.80/55.04
=66.78

* 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's Cyclically Adjusted FCF per Share for the quarter that ended in Apr. 2025 is calculated as:

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)
=15.52/135.3468*135.3468
=15.520

Current CPI (Apr. 2025) = 135.3468.

Palo Alto Networks Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201507 3.247 100.691 4.365
201510 4.118 100.346 5.554
201601 4.798 99.957 6.497
201604 4.927 100.947 6.606
201607 6.014 101.524 8.018
201610 6.368 101.988 8.451
201701 6.493 102.456 8.577
201704 5.639 103.167 7.398
201707 6.241 103.278 8.179
201710 8.481 104.070 11.030
201801 7.461 104.578 9.656
201804 7.255 105.708 9.289
201807 8.415 106.324 10.712
201810 7.846 106.695 9.953
201901 8.509 106.200 10.844
201904 9.259 107.818 11.623
201907 5.901 108.250 7.378
201910 5.888 108.577 7.340
202001 8.257 108.841 10.268
202004 3.455 108.173 4.323
202007 11.649 109.318 14.423
202010 18.762 109.861 23.115
202101 11.701 110.364 14.350
202104 8.704 112.673 10.456
202107 10.158 115.183 11.936
202110 19.446 116.696 22.554
202201 14.082 118.619 16.068
202204 12.049 121.978 13.370
202207 16.537 125.002 17.906
202210 35.106 125.734 37.790
202301 18.602 126.223 19.947
202304 10.460 127.992 11.061
202307 8.877 128.974 9.316
202310 38.428 129.810 40.067
202401 15.730 130.124 16.361
202404 11.824 132.289 12.097
202407 12.222 132.708 12.465
202410 41.405 133.182 42.078
202501 14.821 134.029 14.967
202504 15.520 135.347 15.520

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


Palo Alto Networks  (MEX:PANW) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow 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 Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Palo Alto Networks Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Palo Alto Networks's Cyclically Adjusted Price-to-FCF 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.