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Palo Alto NetworksHAM:5AP -2.85%74 Debt-to-EBITDA is 2.91 as of Apr. 2026, which is 59% above its 10-year median of 1.83. GuruFocus rates HAM:5AP with a GF Score™ of 74/100 and a GF Value™ of €190.13 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,719 Software companies, Palo Alto Networks ranks better than 51.08% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Palo Alto Networks's Debt-to-EBITDA or its related term are showing as below:
HAM:5AP'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -75.95 Med: 1.83 Max: 92.76
Current: 1.04
During the past 13 years, the highest Debt-to-EBITDA Ratio of Palo Alto Networks was 92.76. The lowest was -75.95. And the median was 1.83.
HAM:5AP's Debt-to-EBITDA is ranked better than 51.08% of 1719
companies
in the Software industry
Industry Median: 1.08
vs HAM:5AP: 1.04
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Palo Alto Networks Debt-to-EBITDA Related Terms
Palo Alto Networks Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Palo Alto Networks's Debt-to-EBITDA 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.
HAM:5AP vs PLTR, CRWD, FTNT: Debt-to-EBITDA Comparison
For the Software - Infrastructure subindustry, Palo Alto Networks's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Palo Alto Networks's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Palo Alto Networks's Debt-to-EBITDA falls into.
* 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Apr. 2026) EBITDA data.
Palo Alto Networks (HAM:5AP) has a Debt-to-EBITDA of 2.91 as of Apr. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Palo Alto Networks. This is 59% above median its historical median of 1.83. According to the industry distribution chart, Palo Alto Networks ranks #841 out of 1719 companies in the Software industry, placing it in the top 48.9%.
Is Palo Alto Networks' Debt-to-EBITDA too high?
Palo Alto Networks' current Debt-to-EBITDA of 2.91 is 59% above median its 10-year median of 1.83. The Software industry median Debt-to-EBITDA is 1.08. Palo Alto Networks' value of 2.91 is 169.4% above this industry median. Based on the distribution chart, Palo Alto Networks ranks #841 out of 1719 companies in the Software industry, which is above the industry midpoint. Overall, Palo Alto Networks has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Palo Alto Networks' Debt-to-EBITDA compare to PLTR and CRWD?
According to the Software industry distribution chart, Palo Alto Networks ranks #841 out of 1719 companies for Debt-to-EBITDA. This puts Palo Alto Networks in the upper half of its industry. The industry median Debt-to-EBITDA is 1.08. Palo Alto Networks' value of 2.91 is 169.4% above this benchmark. While the company's 10-year median is 1.83 vs. the industry median of 1.08, 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 Debt-to-EBITDA for a Software company?
The median Debt-to-EBITDA among Software companies is 1.08, based on 1,719 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Palo Alto Networks's current Debt-to-EBITDA of 2.91 is 169.4% 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 Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Palo Alto Networks. For the Software industry, the median Debt-to-EBITDA is 1.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Palo Alto Networks's current Debt-to-EBITDA is 2.91, which is 59% above median its own 10-year median of 1.83. 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?
Based on GuruFocus' analysis, Palo Alto Networks (HAM:5AP) is currently considered Significantly Overvalued. The stock's GF Value™ is €190.13, compared to a current price of €293.40 — trading 54.3% above its estimated fair value. The current Debt-to-EBITDA is 2.91, which is 59% above median its 10-year median of 1.83 and 169.4% above the Software industry median of 1.08. Palo Alto Networks' overall GF Score™ is 74/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Palo Alto Networks (HAM:5AP), the current Debt-to-EBITDA is 2.91 as of Apr. 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 (HAM:5AP) Overvalued in 2026?
Based on GuruFocus' analysis, Palo Alto Networks stock appears to be overvalued.
The current stock price of €293.40 is trading 54.3% above its estimated GF Value™ of €190.13.
GuruFocus considers Palo Alto Networks to be Significantly Overvalued.
Key valuation signals for HAM:5AP:
Debt-to-EBITDA: 2.91 (59% above median its 10-year median of 1.83)
GF Value™: €190.13 vs. price of €293.40 (54.3% above fair value)
Industry Position: 169.4% above the Software median (#841 of 1719)
No single metric tells the full story. See the HAM:5AP 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.
74GF Score
Get the complete analysis for HAM:5AP
Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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