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Palo Alto NetworksFRA:5AP -3.75%68 3-Year EBITDA Growth Rate is 156.60% as of Apr. 2026, which is 482% above its 10-year median of 26.90. GuruFocus rates FRA:5AP with a GF Score™ of 68/100 and a GF Value™ of €182.27 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,070 Software companies, Palo Alto Networks ranks better than 98.45% on this metric.
During the past 12 months, Palo Alto Networks's average EBITDA Per Share Growth Rate was 18.30% per year.
During the past 3 years, the average EBITDA Per Share Growth Rate was 156.60% per year.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average EBITDA per share growth rate.
During the past 13 years, the highest 3-Year average EBITDA Per Share Growth Rate of Palo Alto Networks was 156.60% per year. The lowest was -178.00% per year. And the median was 26.90% per year.
EBITDA per Share is the amount of Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) per outstanding share of the company's stock.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is what the company earns before it expenses interest, taxes, depreciation and amortization.
Palo Alto Networks 3-Year EBITDA Growth Rate Related Terms
FRA:5AP vs PLTR, ORCL, CRWD: 3-Year EBITDA Growth Rate Comparison
For the Software - Infrastructure subindustry, Palo Alto Networks's 3-Year EBITDA Growth Rate, along with its competitors' market caps and 3-Year EBITDA Growth Rate 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 3-Year EBITDA Growth Rate vs Software Industry
For the Software industry and Technology sector, Palo Alto Networks's 3-Year EBITDA Growth Rate distribution charts can be found below:
* The bar in red indicates where Palo Alto Networks's 3-Year EBITDA Growth Rate falls into.
This is the 3-year average growth rate of EBITDA per Share. The growth rate is calculated using exponential compounding based on the latest four year annual data.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average EBITDA per share growth rate.
What does a 3-Year EBITDA Growth Rate of 156.60% mean?
Palo Alto Networks (FRA:5AP) has a 3-Year EBITDA Growth Rate of 156.60% as of Apr. 2026. 3-Year EBITDA Growth Rate is the 3-year average growth rate of EBITDA per share. View historical data for Palo Alto Networks and its competitors. This is 482% above median its historical median of 26.90. According to the industry distribution chart, Palo Alto Networks ranks #32 out of 2070 companies in the Software industry, placing it in the top 1.5%.
Is Palo Alto Networks' 3-Year EBITDA Growth Rate too high?
Palo Alto Networks' current 3-Year EBITDA Growth Rate of 156.60% is 482% above median its 10-year median of 26.90. The Software industry median 3-Year EBITDA Growth Rate is 12.40. Palo Alto Networks' value of 156.60% is 1162.9% above this industry median. Based on the distribution chart, Palo Alto Networks ranks #32 out of 2070 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Palo Alto Networks has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Palo Alto Networks' 3-Year EBITDA Growth Rate compare to PLTR and ORCL?
According to the Software industry distribution chart, Palo Alto Networks ranks #32 out of 2070 companies for 3-Year EBITDA Growth Rate. This places Palo Alto Networks in the top 2% of its industry — outperforming the majority of peers. The industry median 3-Year EBITDA Growth Rate is 12.40. Palo Alto Networks' value of 156.60% is 1162.9% above this benchmark. While the company's 10-year median is 26.90 vs. the industry median of 12.40, 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 3-Year EBITDA Growth Rate for a Software company?
The median 3-Year EBITDA Growth Rate among Software companies is 12.40, based on 2,070 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year EBITDA Growth Rate significantly above this median, while those in the bottom quartile fall well below. However, 3-Year EBITDA Growth Rate should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Palo Alto Networks's current 3-Year EBITDA Growth Rate of 156.60% is 1162.9% 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 3-Year EBITDA Growth Rate mean?
A high 3-Year EBITDA Growth Rate can signal that a stock is expensive relative to its fundamentals. 3-Year EBITDA Growth Rate is the 3-year average growth rate of EBITDA per share. View historical data for Palo Alto Networks and its competitors. For the Software industry, the median 3-Year EBITDA Growth Rate is 12.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Palo Alto Networks's current 3-Year EBITDA Growth Rate is 156.60%, which is 482% above median its own 10-year median of 26.90. 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 €182.27, compared to a current price of €329.45 — trading 80.7% above its estimated fair value. The current 3-Year EBITDA Growth Rate is 156.60%, which is 482% above median its 10-year median of 26.90 and 1162.9% above the Software industry median of 12.40. Palo Alto Networks' overall GF Score™ is 68/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year EBITDA Growth Rate calculated?
3-Year EBITDA Growth Rate is calculated from a company's financial statements. For Palo Alto Networks (FRA:5AP), the current 3-Year EBITDA Growth Rate is 156.60% 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 €329.45 is trading 80.7% above its estimated GF Value™ of €182.27.
GuruFocus considers Palo Alto Networks to be Significantly Overvalued.
Key valuation signals for FRA:5AP:
3-Year EBITDA Growth Rate: 156.60% (482% above median its 10-year median of 26.90)
GF Value™: €182.27 vs. price of €329.45 (80.7% above fair value)
Industry Position: 1162.9% above the Software median (#32 of 2070)
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.
68GF Score
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