Palo Alto Networks (HAM:5AP) Moat Score: 7/10 (As of Jul. 01, 2026)


HAM:5AP Palo Alto Networks Inc HAM:5AP
76 GF Score
Price €296.20
GF Value €184.27
Valuation Significantly Overvalued
! 7 Warning Signs
View Full Analysis

What is Palo Alto Networks Moat Score?

Palo Alto Networks HAM:5AP +2.79% 76 Moat Score is 7 as of Jul. 01, 2026. GuruFocus rates HAM:5AP with a GF Score™ of 76/100 and a GF Value™ of €184.27 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,843 Software companies, Palo Alto Networks ranks better than 99.26% on this metric.

Palo Alto Networks has the Moat Score of 7, which implies that the company might have Wide Moat - Entry-level wide moat, clearly possessing durable advantages.

Palo Alto Networks has Wide Moat: Palo Alto Networks has a strong wide moat due to its leading position in cybersecurity, significant customer switching costs, and continuous innovation in R&D. Its robust brand and pricing power further solidify its competitive edge.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Palo Alto Networks might have Wide Moat - Entry-level wide moat, clearly possessing durable advantages.

Palo Alto Networks  (HAM:5AP) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Palo Alto Networks Moat Score Related Terms

HAM:5AP vs PLTR, CRWD, FTNT: Moat Score Comparison

For the Software - Infrastructure subindustry, Palo Alto Networks's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Software Industry

For the Software industry and Technology sector, Palo Alto Networks's Moat Score distribution charts can be found below:

* The bar in red indicates where Palo Alto Networks's Moat Score falls into.


HAM:5AP
76GF Score
Palo Alto Networks Inc HAM:5AP
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis
Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 7 mean?
Palo Alto Networks (HAM:5AP) has a Moat Score of 7 as of Jul. 01, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Palo Alto Networks ranks #21 out of 2843 companies in the Software industry, placing it in the top 0.7%.
Is Palo Alto Networks' Moat Score too high?
Palo Alto Networks' current Moat Score is 7. Based on the distribution chart, Palo Alto Networks ranks #21 out of 2843 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 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Palo Alto Networks' Moat Score compare to PLTR and CRWD?
According to the Software industry distribution chart, Palo Alto Networks ranks #21 out of 2843 companies for Moat Score. This places Palo Alto Networks in the top 1% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Software company?
A good Moat Score depends on the Software industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Palo Alto Networks's current Moat Score is 7. 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 (HAM:5AP) is currently considered Significantly Overvalued. The stock's GF Value™ is €184.27, compared to a current price of €296.20 — trading 60.7% above its estimated fair value. The current Moat Score is 7. 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 Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Palo Alto Networks (HAM:5AP), the current Moat Score is 7 as of Jul. 01, 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 (HAM:5AP) Overvalued in 2026?

Based on GuruFocus' analysis, Palo Alto Networks stock appears to be overvalued. The current stock price of €296.20 is trading 60.7% above its estimated GF Value™ of €184.27. GuruFocus considers Palo Alto Networks to be Significantly Overvalued.

Key valuation signals for HAM:5AP:

  • Moat Score: 7
  • GF Value™: €184.27 vs. price of €296.20 (60.7% above fair value)
  • GF Score™: 76/100 with 7 warning signs

No single metric tells the full story. See the HAM:5AP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Palo Alto Networks Business Description

Address 3000 Tannery Way, Santa Clara, CA, USA, 95054
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

Get the complete analysis for HAM:5AP

Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€296.20
Price
€184.27
GF Value