Think of Enterprise Value as the theoretical takeover price. It is more comprehensive than market capitalization (Market Cap), which only includes common equity. Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Palo Alto Networks's Enterprise Value is $103,252 Mil.
Palo Alto Networks's EBIT for the trailing twelve months (TTM) ended in Jan. 2024 was $876 Mil. Therefore, Palo Alto Networks's EV-to-EBIT ratio for today is 117.87.
EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA. As of today, Palo Alto Networks's Enterprise Value is $103,252 Mil.
Palo Alto Networks's EBITDA for the trailing twelve months (TTM) ended in Jan. 2024 was $1,151 Mil. Therefore, Palo Alto Networks's EV-to-EBITDA ratio for today is 89.75.
EV-to-Revenue is calculated as Enterprise Value divided by its Revenue. As of today, Palo Alto Networks's Enterprise Value is $103,252 Mil.
Palo Alto Networks's Revenue for the trailing twelve months (TTM) ended in Jan. 2024 was $7,527 Mil. Therefore, Palo Alto Networks's EV-to-Revenue ratio for today is 13.72.
Palo Alto Networks Enterprise Value Historical Data
The historical data trend for Palo Alto Networks's Enterprise Value 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.
Competitive Comparison of Palo Alto Networks's Enterprise Value
For the Software - Infrastructure subindustry, Palo Alto Networks's Enterprise Value, along with its competitors' market caps and Enterprise Value 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's Enterprise Value Distribution in the Software Industry
For the Software industry and Technology sector, Palo Alto Networks's Enterprise Value distribution charts can be found below:
* The bar in red indicates where Palo Alto Networks's Enterprise Value falls into.
Palo Alto Networks Enterprise Value Calculation
Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
Palo Alto Networks's Enterprise Value for the fiscal year that ended in Jul. 2023 is calculated as
* 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 (LTS:0KF5) Enterprise Value Explanation
When an investor buy a company, the investor needs to pay not only the common shares, he/she also needs to pay the shareholders of Preferred Stocks. He also assumes the debt of the company, and receives the cash on the company's balance sheet.
If a company has more cash than debt, the investor actually pays less than the Market Cap because he immediately owns the cash once the transaction goes through.
The market value of Preferred Stock needs to be added to the market value of common stocks in the calculation of Enterprise Value.
For the companies with the same Market Cap, the smaller the Enterprise Value is, the cheaper the company is.
Enterprise Value can be negative when the company's net cash is more than its Market Cap. In this case the investor is basically getting the company for free and get paid for that.
1. EV-to-EBIT is calculated as Enterprise Value divided by its EBIT.
Palo Alto Networks's current Enterprise Value is $103,252 Mil.
Palo Alto Networks's EBIT for the trailing twelve months (TTM) ended in Jan. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $876 Mil.
2. EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA.
Palo Alto Networks's current Enterprise Value is $103,252 Mil.
Palo Alto Networks's EBITDA for the trailing twelve months (TTM) ended in Jan. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,151 Mil.
Palo Alto Networks's current Enterprise Value is $103,252 Mil.
Palo Alto Networks's Revenue for the trailing twelve months (TTM) ended in Jan. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $7,527 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 Enterprise Value Related Terms
Thank you for viewing the detailed overview of Palo Alto Networks's Enterprise Value provided by GuruFocus.com. Please click on the following links to see related term pages.
Palo Alto Networks (LTS:0KF5) Business Description
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 85,000 customers across the world, including more than three fourths of the Global 2000.
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