Palo Alto NetworksXTER:5AP +1.86%68 PB Ratio is 8.85 as of Jun. 26, 2026, which is 58% below its 10-year median of 20.96. GuruFocus rates XTER:5AP with a GF Score™ of 68/100 and a GF Value™ of €188.12 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,625 Software companies, Palo Alto Networks ranks worse than 88.23% on this metric.
The historical rank and industry rank for Palo Alto Networks's PB Ratio or its related term are showing as below:
XTER:5AP'
s PB Ratio Range Over the Past 10 Years
Min: 5.32 Med: 20.96 Max: 524.94
Current: 8.38
During the past 13 years, Palo Alto Networks's highest PB Ratio was 524.94. The lowest was 5.32. And the median was 20.96.
XTER:5AP's PB Ratio is ranked worse than 88.23% of 2625
companies
in the Software industry
Industry Median: 2.36
vs XTER:5AP: 8.38
During the past 12 months, Palo Alto Networks's average Book Value Per Share Growth Rate was 213.40% per year.
During the past 3 years, the average Book Value Per Share Growth Rate was 222.00% per year.
During the past 5 years, the average Book Value Per Share Growth Rate was 60.60% per year.
During the past 10 years, the average Book Value Per Share Growth Rate was 15.50% per year.
During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Palo Alto Networks was 222.00% per year. The lowest was -49.50% per year. And the median was 18.30% per year.
Back to Basics: PB Ratio
Palo Alto Networks (XTER:5AP) PB Ratio Explanation
The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.
Be Aware
Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.
Palo Alto Networks PB Ratio Related Terms
Palo Alto Networks PB Ratio Historical Data
* Premium members only.
The historical data trend for Palo Alto Networks's PB Ratio 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.
For the Software - Infrastructure subindustry, Palo Alto Networks's PB Ratio, along with its competitors' market caps and PB Ratio 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 PB Ratio vs Software Industry
For the Software industry and Technology sector, Palo Alto Networks's PB Ratio distribution charts can be found below:
* The bar in red indicates where Palo Alto Networks's PB Ratio falls into.
The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.
* 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.
It can also be calculated from the numbers for the whole company:
A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.
Palo Alto Networks (XTER:5AP) has a PB Ratio of 8.85 as of Jun. 26, 2026. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Palo Alto Networks and its competitors. This is 58% below median its historical median of 20.96. Over the past decade, Palo Alto Networks' PB Ratio has ranged from 5.32 to 524.94. According to the industry distribution chart, Palo Alto Networks ranks #2316 out of 2625 companies in the Software industry, placing it in the top 88.2%.
Is Palo Alto Networks' PB Ratio too high?
Palo Alto Networks' current PB Ratio of 8.85 is 58% below median its 10-year median of 20.96. Over the past 10 years, this metric has ranged from a low of 5.32 to a high of 524.94. The Software industry median PB Ratio is 2.36. Palo Alto Networks' value of 8.85 is 275% above this industry median. Based on the distribution chart, Palo Alto Networks ranks #2316 out of 2625 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Palo Alto Networks has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Palo Alto Networks' PB Ratio compare to CRWD and FTNT?
According to the Software industry distribution chart, Palo Alto Networks ranks #2316 out of 2625 companies for PB Ratio. This places Palo Alto Networks in the lower half of its industry. The industry median PB Ratio is 2.36. Palo Alto Networks' value of 8.85 is 275% above this benchmark. Historically, Palo Alto Networks' own PB Ratio has ranged from 5.32 to 524.94 over the past decade. While the company's 10-year median is 20.96 vs. the industry median of 2.36, 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 PB Ratio for a Software company?
The median PB Ratio among Software companies is 2.36, based on 2,625 companies in the industry. Companies in the top quartile (top 25%) have a PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Palo Alto Networks's current PB Ratio of 8.85 is 275% 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 PB Ratio mean?
A high PB Ratio can signal that a stock is expensive relative to its fundamentals. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Palo Alto Networks and its competitors. For the Software industry, the median PB Ratio is 2.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Palo Alto Networks's current PB Ratio is 8.85, which is 58% below median its own 10-year median of 20.96. 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 (XTER:5AP) is currently considered Significantly Overvalued. The stock's GF Value™ is €188.12, compared to a current price of €257.45 — trading 36.9% above its estimated fair value. The current PB Ratio is 8.85, which is 58% below median its 10-year median of 20.96 and 275% above the Software industry median of 2.36. Palo Alto Networks' overall GF Score™ is 68/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PB Ratio calculated?
PB Ratio is calculated from a company's financial statements. For Palo Alto Networks (XTER:5AP), the current PB Ratio is 8.85 as of Jun. 26, 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 (XTER:5AP) Overvalued in 2026?
Based on GuruFocus' analysis, Palo Alto Networks stock appears to be overvalued.
The current stock price of €257.45 is trading 36.9% above its estimated GF Value™ of €188.12.
GuruFocus considers Palo Alto Networks to be Significantly Overvalued.
Key valuation signals for XTER:5AP:
PB Ratio: 8.85 (58% below median its 10-year median of 20.96)
GF Value™: €188.12 vs. price of €257.45 (36.9% above fair value)
Industry Position: 275% above the Software median (#2316 of 2625)
No single metric tells the full story. See the XTER: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.
68GF Score
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