Palo Alto NetworksFRA:5AP +3.57%80 FCF Yield % is 1.53 as of Jun. 27, 2026, which is 58% below its 10-year median of 3.67. GuruFocus rates FRA:5AP with a GF Score™ of 80/100 and a GF Value™ of €187.17 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,868 Software companies, Palo Alto Networks ranks better than 53.14% on this metric.
FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Palo Alto Networks FCF Yield % Related Terms
Palo Alto Networks FCF Yield % Historical Data
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The historical data trend for Palo Alto Networks's FCF Yield % 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 CRWD, FTNT, SNPS: FCF Yield % Comparison
For the Software - Infrastructure subindustry, Palo Alto Networks's FCF Yield %, along with its competitors' market caps and FCF Yield % 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 FCF Yield % vs Software Industry
For the Software industry and Technology sector, Palo Alto Networks's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Palo Alto Networks's FCF Yield % 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 (FRA:5AP) has a FCF Yield % of 1.53 as of Jun. 27, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Palo Alto Networks and its competitors. This is 58% below median its historical median of 3.67. Over the past decade, Palo Alto Networks' FCF Yield % has ranged from 1.53 to 6.86. According to the industry distribution chart, Palo Alto Networks ranks #1344 out of 2868 companies in the Software industry, placing it in the top 46.9%.
Is Palo Alto Networks' FCF Yield % too high?
Palo Alto Networks' current FCF Yield % of 1.53 is 58% below median its 10-year median of 3.67. Over the past 10 years, this metric has ranged from a low of 1.53 to a high of 6.86. The Software industry median FCF Yield % is 0.89. Palo Alto Networks' value of 1.53 is 72.9% above this industry median. Based on the distribution chart, Palo Alto Networks ranks #1344 out of 2868 companies in the Software industry, which is above the industry midpoint. Overall, Palo Alto Networks has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Palo Alto Networks' FCF Yield % compare to CRWD and FTNT?
According to the Software industry distribution chart, Palo Alto Networks ranks #1344 out of 2868 companies for FCF Yield %. This puts Palo Alto Networks in the upper half of its industry. The industry median FCF Yield % is 0.89. Palo Alto Networks' value of 1.53 is 72.9% above this benchmark. Historically, Palo Alto Networks' own FCF Yield % has ranged from 1.53 to 6.86 over the past decade. While the company's 10-year median is 3.67 vs. the industry median of 0.89, 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 FCF Yield % for a Software company?
The median FCF Yield % among Software companies is 0.89, based on 2,868 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Palo Alto Networks's current FCF Yield % of 1.53 is 72.9% 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 FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Palo Alto Networks and its competitors. For the Software industry, the median FCF Yield % is 0.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Palo Alto Networks's current FCF Yield % is 1.53, which is 58% below median its own 10-year median of 3.67. 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 €187.17, compared to a current price of €268.20 — trading 43.3% above its estimated fair value. The current FCF Yield % is 1.53, which is 58% below median its 10-year median of 3.67 and 72.9% above the Software industry median of 0.89. Palo Alto Networks' overall GF Score™ is 80/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For Palo Alto Networks (FRA:5AP), the current FCF Yield % is 1.53 as of Jun. 27, 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 €268.20 is trading 43.3% above its estimated GF Value™ of €187.17.
GuruFocus considers Palo Alto Networks to be Significantly Overvalued.
Key valuation signals for FRA:5AP:
FCF Yield %: 1.53 (58% below median its 10-year median of 3.67)
GF Value™: €187.17 vs. price of €268.20 (43.3% above fair value)
Industry Position: 72.9% above the Software median (#1344 of 2868)
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.
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