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Palo Alto NetworksFRA:5AP -2.04%74 EV-to-EBITDA is 131.30 as of Jul. 30, 2026, which is 47% above its 10-year median of 89.09. GuruFocus rates FRA:5AP with a GF Score™ of 74/100 and a GF Value™ of €183.90 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,959 Software companies, Palo Alto Networks ranks worse than 94.59% on this metric.
EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, Palo Alto Networks's enterprise value is €223,953 Mil.
Palo Alto Networks's EBITDA for the trailing twelve months (TTM) ended in Apr. 2026 was €1,706 Mil. Therefore, Palo Alto Networks's EV-to-EBITDA for today is 131.30.
The historical rank and industry rank for Palo Alto Networks's EV-to-EBITDA or its related term are showing as below:
FRA:5AP'
s EV-to-EBITDA Range Over the Past 10 Years
Min: -2649.66 Med: 89.09 Max: 1155.55
Current: 127.88
During the past 13 years, the highest EV-to-EBITDA of Palo Alto Networks was 1155.55. The lowest was -2649.66. And the median was 89.09.
FRA:5AP's EV-to-EBITDA is ranked worse than 94.59% of 1959
companies
in the Software industry
Industry Median: 10.4
vs FRA:5AP: 127.88
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Palo Alto Networks's PE Ratio (TTM) for today is calculated as:
Palo Alto Networks's share price for today is €274.05.
Palo Alto Networks's Earnings per Share (Diluted) 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 €1.044.
* 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.
Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).
The historical data trend for Palo Alto Networks's EV-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.
FRA:5AP vs PLTR, ORCL, CRWD: EV-to-EBITDA Comparison
For the Software - Infrastructure subindustry, Palo Alto Networks's EV-to-EBITDA, along with its competitors' market caps and EV-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 EV-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Palo Alto Networks's EV-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Palo Alto Networks's EV-to-EBITDA falls into.
Palo Alto Networks's current Enterprise Value is €223,953 Mil.
Palo Alto Networks's EBITDA 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 €1,706 Mil.
* 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 (FRA:5AP) has a EV-to-EBITDA of 131.30 as of Jul. 30, 2026. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Palo Alto Networks. This is 47% above median its historical median of 89.09. According to the industry distribution chart, Palo Alto Networks ranks #1853 out of 1959 companies in the Software industry, placing it in the top 94.6%.
Is Palo Alto Networks' EV-to-EBITDA too high?
Palo Alto Networks' current EV-to-EBITDA of 131.30 is 47% above median its 10-year median of 89.09. The Software industry median EV-to-EBITDA is 10.40. Palo Alto Networks' value of 131.30 is 1162.5% above this industry median. Based on the distribution chart, Palo Alto Networks ranks #1853 out of 1959 companies in the Software industry, which is in the bottom quartile relative to peers. 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' EV-to-EBITDA compare to PLTR and ORCL?
According to the Software industry distribution chart, Palo Alto Networks ranks #1853 out of 1959 companies for EV-to-EBITDA. This places Palo Alto Networks in the lower half of its industry. The industry median EV-to-EBITDA is 10.40. Palo Alto Networks' value of 131.30 is 1162.5% above this benchmark. While the company's 10-year median is 89.09 vs. the industry median of 10.40, 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 EV-to-EBITDA for a Software company?
The median EV-to-EBITDA among Software companies is 10.40, based on 1,959 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Palo Alto Networks's current EV-to-EBITDA of 131.30 is 1162.5% 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 EV-to-EBITDA mean?
A high EV-to-EBITDA can signal that a stock is expensive relative to its fundamentals. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Palo Alto Networks. For the Software industry, the median EV-to-EBITDA is 10.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Palo Alto Networks's current EV-to-EBITDA is 131.30, which is 47% above median its own 10-year median of 89.09. 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 €183.90, compared to a current price of €274.05 — trading 49% above its estimated fair value. The current EV-to-EBITDA is 131.30, which is 47% above median its 10-year median of 89.09 and 1162.5% above the Software industry median of 10.40. Palo Alto Networks' overall GF Score™ is 74/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBITDA calculated?
EV-to-EBITDA is calculated from a company's financial statements. For Palo Alto Networks (FRA:5AP), the current EV-to-EBITDA is 131.30 as of Jul. 30, 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 €274.05 is trading 49% above its estimated GF Value™ of €183.90.
GuruFocus considers Palo Alto Networks to be Significantly Overvalued.
Key valuation signals for FRA:5AP:
EV-to-EBITDA: 131.30 (47% above median its 10-year median of 89.09)
GF Value™: €183.90 vs. price of €274.05 (49% above fair value)
Industry Position: 1162.5% above the Software median (#1853 of 1959)
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.
74GF Score
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