Palo Alto NetworksXTER:5AP -0.71%68 EBITDA Margin % is 5.93% as of Apr. 2026, which is 239% above its 10-year median of 1.75. GuruFocus rates XTER:5AP with a GF Score™ of 68/100 and a GF Value™ of €188.12 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,818 Software companies, Palo Alto Networks ranks better than 75.3% on this metric.
EBITDA Margin % is calculated as EBITDA divided by its Revenue. Palo Alto Networks's EBITDA for the
three
months ended in Apr. 2026 was €152 Mil. Palo Alto Networks's Revenue for the
three
months ended in Apr. 2026 was €2,567 Mil. Therefore, Palo Alto Networks's EBITDA margin for the quarter that ended in Apr. 2026 was 5.93%.
EBITDA Margin % is the ratio of EBITDA divided by net sales or Revenue. It is an performance metric measuring company's operating profitability. EBITDA Margin takes depreciation and amortization, interest expense and tax into account, which makes it easy to compare the relative profitability of companies of different sizes in the same industry.
Palo Alto Networks EBITDA Margin % Related Terms
Palo Alto Networks EBITDA Margin % Historical Data
* Premium members only.
The historical data trend for Palo Alto Networks's EBITDA Margin % 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.
XTER:5AP vs CRWD, FTNT, SNPS: EBITDA Margin % Comparison
For the Software - Infrastructure subindustry, Palo Alto Networks's EBITDA Margin %, along with its competitors' market caps and EBITDA Margin % 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 EBITDA Margin % vs Software Industry
For the Software industry and Technology sector, Palo Alto Networks's EBITDA Margin % distribution charts can be found below:
* The bar in red indicates where Palo Alto Networks's EBITDA Margin % 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.
Palo Alto Networks (XTER:5AP) has a EBITDA Margin % of 5.93% as of Apr. 2026. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Palo Alto Networks and its competitors. This is 239% above median its historical median of 1.75. According to the industry distribution chart, Palo Alto Networks ranks #696 out of 2818 companies in the Software industry, placing it in the top 24.7%.
Is Palo Alto Networks' EBITDA Margin % too high?
Palo Alto Networks' current EBITDA Margin % of 5.93% is 239% above median its 10-year median of 1.75. The Software industry median EBITDA Margin % is 8.07. Palo Alto Networks' value of 5.93% is 26.5% below this industry median. Based on the distribution chart, Palo Alto Networks ranks #696 out of 2818 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' EBITDA Margin % compare to CRWD and FTNT?
According to the Software industry distribution chart, Palo Alto Networks ranks #696 out of 2818 companies for EBITDA Margin %. This places Palo Alto Networks in the top 25% of its industry — outperforming the majority of peers. The industry median EBITDA Margin % is 8.07. Palo Alto Networks' value of 5.93% is 26.5% below this benchmark. While the company's 10-year median is 1.75 vs. the industry median of 8.07, Palo Alto Networks has consistently been below 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 EBITDA Margin % for a Software company?
The median EBITDA Margin % among Software companies is 8.07, based on 2,818 companies in the industry. Companies in the top quartile (top 25%) have a EBITDA Margin % significantly above this median, while those in the bottom quartile fall well below. However, EBITDA Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Palo Alto Networks's current EBITDA Margin % of 5.93% is 26.5% 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 EBITDA Margin % mean?
A high EBITDA Margin % can signal that a stock is expensive relative to its fundamentals. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Palo Alto Networks and its competitors. For the Software industry, the median EBITDA Margin % is 8.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Palo Alto Networks's current EBITDA Margin % is 5.93%, which is 239% above median its own 10-year median of 1.75. 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 (XTER:5AP) is currently considered Significantly Overvalued. The stock's GF Value™ is €188.12, compared to a current price of €252.75 — trading 34.4% above its estimated fair value. The current EBITDA Margin % is 5.93%, which is 239% above median its 10-year median of 1.75 and 26.5% below the Software industry median of 8.07. 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 EBITDA Margin % calculated?
EBITDA Margin % is calculated from a company's financial statements. For Palo Alto Networks (XTER:5AP), the current EBITDA Margin % is 5.93% 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 (XTER:5AP) Overvalued in 2026?
Based on GuruFocus' analysis, Palo Alto Networks stock appears to be overvalued.
The current stock price of €252.75 is trading 34.4% above its estimated GF Value™ of €188.12.
GuruFocus considers Palo Alto Networks to be Significantly Overvalued.
Key valuation signals for XTER:5AP:
EBITDA Margin %: 5.93% (239% above median its 10-year median of 1.75)
GF Value™: €188.12 vs. price of €252.75 (34.4% above fair value)
Industry Position: 26.5% below the Software median (#696 of 2818)
No single metric tells the full story. See the XTER: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
Get the complete analysis for XTER:5AP
EBITDA Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XTER:5AP has been successfully added to your 
