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Palo Alto Networks (Palo Alto Networks) Cyclically Adjusted PS Ratio : 23.07 (As of Apr. 27, 2024)


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What is Palo Alto Networks Cyclically Adjusted PS Ratio?

As of today (2024-04-27), Palo Alto Networks's current share price is $291.42. Palo Alto Networks's Cyclically Adjusted Revenue per Share for the quarter that ended in Jan. 2024 was $12.63. Palo Alto Networks's Cyclically Adjusted PS Ratio for today is 23.07.

The historical rank and industry rank for Palo Alto Networks's Cyclically Adjusted PS Ratio or its related term are showing as below:

PANW' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 11.63   Med: 19.06   Max: 29.84
Current: 22.86

During the past years, Palo Alto Networks's highest Cyclically Adjusted PS Ratio was 29.84. The lowest was 11.63. And the median was 19.06.

PANW's Cyclically Adjusted PS Ratio is ranked worse than
97.09% of 1409 companies
in the Software industry
Industry Median: 1.86 vs PANW: 22.86

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 PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

Palo Alto Networks's adjusted revenue per share data for the three months ended in Jan. 2024 was $5.525. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is $12.63 for the trailing ten years ended in Jan. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Palo Alto Networks Cyclically Adjusted PS Ratio Historical Data

The historical data trend for Palo Alto Networks's Cyclically Adjusted PS 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.

* Premium members only.

Palo Alto Networks Cyclically Adjusted PS Ratio Chart

Palo Alto Networks Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 14.62 18.20 17.37 21.42

Palo Alto Networks Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Cyclically Adjusted PS Ratio 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 15.08 16.43 21.42 19.91 26.79

Competitive Comparison of Palo Alto Networks's Cyclically Adjusted PS Ratio

For the Software - Infrastructure subindustry, Palo Alto Networks's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS 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's Cyclically Adjusted PS Ratio Distribution in the Software Industry

For the Software industry and Technology sector, Palo Alto Networks's Cyclically Adjusted PS Ratio distribution charts can be found below:

* The bar in red indicates where Palo Alto Networks's Cyclically Adjusted PS Ratio falls into.



Palo Alto Networks Cyclically Adjusted PS Ratio Calculation

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

Palo Alto Networks's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=291.42/12.63
=23.07

* 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 Revenue per Share for the quarter that ended in Jan. 2024 is calculated as:

For example, Palo Alto Networks's adjusted Revenue per Share data for the three months ended in Jan. 2024 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Jan. 2024 (Change)*Current CPI (Jan. 2024)
=5.525/129.4194*129.4194
=5.525

Current CPI (Jan. 2024) = 129.4194.

Palo Alto Networks Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201404 0.670 100.023 0.867
201407 0.764 100.520 0.984
201410 0.807 100.176 1.043
201501 0.898 98.604 1.179
201504 0.949 99.824 1.230
201507 1.127 100.691 1.449
201510 1.164 100.346 1.501
201601 1.288 99.957 1.668
201604 1.313 100.947 1.683
201607 1.503 101.524 1.916
201610 1.478 101.988 1.876
201701 1.553 102.456 1.962
201704 1.582 103.167 1.985
201707 1.843 103.278 2.309
201710 1.840 104.070 2.288
201801 1.996 104.578 2.470
201804 2.059 105.708 2.521
201807 2.363 106.324 2.876
201810 2.331 106.695 2.827
201901 2.522 106.200 3.073
201904 2.566 107.818 3.080
201907 2.807 108.250 3.356
201910 2.664 108.577 3.175
202001 2.769 108.841 3.293
202004 2.997 108.173 3.586
202007 3.300 109.318 3.907
202010 3.302 109.861 3.890
202101 3.535 110.364 4.145
202104 3.694 112.673 4.243
202107 4.183 115.183 4.700
202110 4.259 116.696 4.723
202201 4.472 118.619 4.879
202204 4.674 121.978 4.959
202207 5.198 125.002 5.382
202210 4.620 125.734 4.755
202301 4.991 126.223 5.117
202304 4.992 127.992 5.048
202307 5.504 128.974 5.523
202310 5.369 129.810 5.353
202401 5.525 129.419 5.525

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue 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  (NAS:PANW) Cyclically Adjusted PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue 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 PS Ratio should give similar results to regular PS Ratio.


Palo Alto Networks Cyclically Adjusted PS Ratio Related Terms

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


Palo Alto Networks (Palo Alto Networks) Business Description

Traded in Other Exchanges
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 85,000 customers across the world, including more than three fourths of the Global 2000.
Executives
John Donovan director 208 S. AKARD ST. , ROOM 3025, DALLAS TX 75202
Nir Zuk director, officer: CTO 3000 TANNERY WAY, SANTA CLARA CA 95054
John P. Key director 3000 TANNERY WAY, SANTA CLARA CA 95054
Dipak Golechha officer: EVP, Chief Financial Officer 3000 TANNERY WAY, SANTA CLARA CA 95054
Nikesh Arora director, officer: Chief Executive Officer 3000 TANNERY WAY, SANTA CLARA CA 95054
Lee Klarich officer: Chief Product Officer 4401 GREAT AMERICA PKWY, SANTA CLARA CA 95054
Josh D. Paul officer: Chief Accounting Officer 3000 TANNERY WAY, SANTA CLARA CA 95054
Jenkins William D Jr officer: President C/O PALO ALTO NETWORKS INC, 3000 TANNERY WAY, SANTA CLARA CA 95054
Aparna Bawa director C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Carl M. Eschenbach director C/O SEQUOIA CAPITAL, 2800 SAND HILL ROAD, SUITE 101, PALO ALTO CA 94025
James J Goetz director C/O SEQUOIA CAPITAL, 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025
Mark D Mclaughlin director, officer: President & CEO C/O PALO ALTO NETWORKS, INC., 4401 GREAT AMERICA PKWY, SANTA CLARA CA 95054
Amit K. Singh officer: President 3000 TANNERY WAY, SANTA CLARA CA 95054
Helene D Gayle director C/O COLGATE PALMOLIVE COMPANY, 300 PARK AVENUE, NEW YORK NY 10022
Jean Compeau officer: Chief Accounting Officer 3000 TANNERY WAY, SANTA CLARA CA 95054