Palo Alto NetworksFRA:5AP0 +0.81%76 EV-to-FCF is 76.35 as of Jul. 03, 2026, which is 178% above its 10-year median of 27.45. GuruFocus rates FRA:5AP0 with a GF Score™ of 76/100 and a GF Value™ of €15.23 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,589 Software companies, Palo Alto Networks ranks worse than 89.93% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Palo Alto Networks's Enterprise Value is €248,181 Mil.
Palo Alto Networks's Free Cash Flow for the trailing twelve months (TTM) ended in Apr. 2026 was €3,251 Mil. Therefore, Palo Alto Networks's EV-to-FCF for today is 76.35.
The historical rank and industry rank for Palo Alto Networks's EV-to-FCF or its related term are showing as below:
FRA:5AP0'
s EV-to-FCF Range Over the Past 10 Years
Min: 13.34 Med: 27.45 Max: 74.5
Current: 74.5
During the past 13 years, the highest EV-to-FCF of Palo Alto Networks was 74.50. The lowest was 13.34. And the median was 27.45.
FRA:5AP0's EV-to-FCF is ranked worse than 89.93% of 1589
companies
in the Software industry
Industry Median: 14.3
vs FRA:5AP0: 74.50
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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.
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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 €25.00.
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 €0.091.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Palo Alto Networks EV-to-FCF Related Terms
Palo Alto Networks EV-to-FCF Historical Data
* Premium members only.
The historical data trend for Palo Alto Networks's EV-to-FCF 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:5AP0 vs PLTR, CRWD, FTNT: EV-to-FCF Comparison
For the Software - Infrastructure subindustry, Palo Alto Networks's EV-to-FCF, along with its competitors' market caps and EV-to-FCF 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-FCF vs Software Industry
For the Software industry and Technology sector, Palo Alto Networks's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Palo Alto Networks's EV-to-FCF falls into.
Palo Alto Networks's current Enterprise Value is €248,181 Mil.
Palo Alto Networks's Free Cash Flow 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 €3,251 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:5AP0) has a EV-to-FCF of 76.35 as of Jul. 03, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Palo Alto Networks and its competitors. This is 178% above median its historical median of 27.45. Over the past decade, Palo Alto Networks' EV-to-FCF has ranged from 13.34 to 74.50. According to the industry distribution chart, Palo Alto Networks ranks #1429 out of 1589 companies in the Software industry, placing it in the top 89.9%.
Is Palo Alto Networks' EV-to-FCF too high?
Palo Alto Networks' current EV-to-FCF of 76.35 is 178% above median its 10-year median of 27.45. Over the past 10 years, this metric has ranged from a low of 13.34 to a high of 74.50. The Software industry median EV-to-FCF is 14.30. Palo Alto Networks' value of 76.35 is 433.9% above this industry median. Based on the distribution chart, Palo Alto Networks ranks #1429 out of 1589 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Palo Alto Networks has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Palo Alto Networks' EV-to-FCF compare to PLTR and CRWD?
According to the Software industry distribution chart, Palo Alto Networks ranks #1429 out of 1589 companies for EV-to-FCF. This places Palo Alto Networks in the lower half of its industry. The industry median EV-to-FCF is 14.30. Palo Alto Networks' value of 76.35 is 433.9% above this benchmark. Historically, Palo Alto Networks' own EV-to-FCF has ranged from 13.34 to 74.50 over the past decade. While the company's 10-year median is 27.45 vs. the industry median of 14.30, 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-FCF for a Software company?
The median EV-to-FCF among Software companies is 14.30, based on 1,589 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Palo Alto Networks's current EV-to-FCF of 76.35 is 433.9% 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 EV-to-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Palo Alto Networks and its competitors. For the Software industry, the median EV-to-FCF is 14.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Palo Alto Networks's current EV-to-FCF is 76.35, which is 178% above median its own 10-year median of 27.45. 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:5AP0) is currently considered Significantly Overvalued. The stock's GF Value™ is €15.23, compared to a current price of €25.00 — trading 64.1% above its estimated fair value. The current EV-to-FCF is 76.35, which is 178% above median its 10-year median of 27.45 and 433.9% above the Software industry median of 14.30. Palo Alto Networks' overall GF Score™ is 76/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Palo Alto Networks (FRA:5AP0), the current EV-to-FCF is 76.35 as of Jul. 03, 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:5AP0) Overvalued in 2026?
Based on GuruFocus' analysis, Palo Alto Networks stock appears to be overvalued.
The current stock price of €25.00 is trading 64.1% above its estimated GF Value™ of €15.23.
GuruFocus considers Palo Alto Networks to be Significantly Overvalued.
Key valuation signals for FRA:5AP0:
EV-to-FCF: 76.35 (178% above median its 10-year median of 27.45)
GF Value™: €15.23 vs. price of €25.00 (64.1% above fair value)
Industry Position: 433.9% above the Software median (#1429 of 1589)
No single metric tells the full story. See the FRA:5AP0 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.
76GF Score
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