Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Palo Alto Networks's Enterprise Value for the quarter that ended in Apr. 2026 was €123,272 Mil.
Palo Alto Networks's EBIT for the trailing twelve months (TTM) ended in Apr. 2026 was €1,194 Mil. Palo Alto Networks's Earnings Yield (Joel Greenblatt) for the quarter that ended in Apr. 2026 was 0.96%.
The historical rank and industry rank for Palo Alto Networks's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
FRA:5AP'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: -1.89 Med: -0.31 Max: 1.86
Current: 0.48
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Palo Alto Networks was 1.86%. The lowest was -1.89%. And the median was -0.31%.
FRA:5AP's Earnings Yield (Joel Greenblatt) % is ranked worse than 57.46% of 2910
companies
in the Software industry
Industry Median: 1.995
vs FRA:5AP: 0.48
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Palo Alto Networks's Forward Rate of Return (Yacktman) % for the quarter that ended in Apr. 2026 was 0.00%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
Palo Alto Networks Earnings Yield (Joel Greenblatt) % Related Terms
Palo Alto Networks Earnings Yield (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Palo Alto Networks's Earnings Yield (Joel Greenblatt) % 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.
For the Software - Infrastructure subindustry, Palo Alto Networks's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % 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 Earnings Yield (Joel Greenblatt) % vs Software Industry
For the Software industry and Technology sector, Palo Alto Networks's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Palo Alto Networks's Earnings Yield (Joel Greenblatt) % falls into.
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
Palo Alto Networkss Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Jul. 2025 is calculated as
Palo Alto Networks's EBIT for the trailing twelve months (TTM) ended in Apr. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €1,194 Mil.
What does a Earnings Yield (Joel Greenblatt) % of 0.96% mean?
Palo Alto Networks (FRA:5AP) has a Earnings Yield (Joel Greenblatt) % of 0.96% as of Apr. 2026. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Palo Alto Networks and its competitors. According to the industry distribution chart, Palo Alto Networks ranks #1672 out of 2910 companies in the Software industry, placing it in the top 57.5%.
Is Palo Alto Networks' Earnings Yield (Joel Greenblatt) % too high?
Palo Alto Networks' current Earnings Yield (Joel Greenblatt) % is 0.96%. The Software industry median Earnings Yield (Joel Greenblatt) % is 2.00. Palo Alto Networks' value of 0.96% is 51.9% below this industry median. Based on the distribution chart, Palo Alto Networks ranks #1672 out of 2910 companies in the Software industry, which is below the industry midpoint. Overall, Palo Alto Networks has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Palo Alto Networks' Earnings Yield (Joel Greenblatt) % compare to PLTR and ORCL?
According to the Software industry distribution chart, Palo Alto Networks ranks #1672 out of 2910 companies for Earnings Yield (Joel Greenblatt) %. This places Palo Alto Networks in the lower half of its industry. The industry median Earnings Yield (Joel Greenblatt) % is 2.00. Palo Alto Networks' value of 0.96% is 51.9% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Earnings Yield (Joel Greenblatt) % for a Software company?
The median Earnings Yield (Joel Greenblatt) % among Software companies is 2.00, based on 2,910 companies in the industry. Companies in the top quartile (top 25%) have a Earnings Yield (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, Earnings Yield (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Palo Alto Networks's current Earnings Yield (Joel Greenblatt) % of 0.96% is 51.9% below 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 Earnings Yield (Joel Greenblatt) % mean?
A high Earnings Yield (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Palo Alto Networks and its competitors. For the Software industry, the median Earnings Yield (Joel Greenblatt) % is 2.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Palo Alto Networks's current Earnings Yield (Joel Greenblatt) % is 0.96%. 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 (FRA:5AP) is currently considered Significantly Overvalued. The stock's GF Value™ is €182.87, compared to a current price of €310.65 — trading 69.9% above its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 0.96% and 51.9% below the Software industry median of 2.00. Palo Alto Networks' overall GF Score™ is 70/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Yield (Joel Greenblatt) % calculated?
Earnings Yield (Joel Greenblatt) % is calculated from a company's financial statements. For Palo Alto Networks (FRA:5AP), the current Earnings Yield (Joel Greenblatt) % is 0.96% 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 (FRA:5AP) Overvalued in 2026?
Based on GuruFocus' analysis, Palo Alto Networks stock appears to be overvalued.
The current stock price of €310.65 is trading 69.9% above its estimated GF Value™ of €182.87.
GuruFocus considers Palo Alto Networks to be Significantly Overvalued.
Key valuation signals for FRA:5AP:
Earnings Yield (Joel Greenblatt) %: 0.96%
GF Value™: €182.87 vs. price of €310.65 (69.9% above fair value)
Industry Position: 51.9% below the Software median (#1672 of 2910)
No single metric tells the full story. See the FRA: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.
70GF Score
Get the complete analysis for FRA:5AP
Earnings Yield (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:5AP has been successfully added to your 
