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Palo Alto Networks GF Value Rank

: 5 (As of Today)
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Palo Alto Networks has the GF Value Rank of 5.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.


Competitive Comparison

For the Software - Infrastructure subindustry, Palo Alto Networks's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank Distribution

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

* The bar in red indicates where Palo Alto Networks's GF Value Rank falls into.



Palo Alto Networks GF Value Rank Related Terms

Thank you for viewing the detailed overview of Palo Alto Networks's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


Palo Alto Networks Business Description

Palo Alto Networks logo
Traded in Other Exchanges
Address
3000 Tannery Way, Santa Clara, CA, USA, 95054
Palo Alto Networks is a pure-play cybersecurity vendor that sells security appliances, subscriptions, and support into enterprises, government entities, and service providers. The company's product portfolio includes firewall appliances, virtual firewalls, endpoint protection, cloud security, and cybersecurity analytics. The Santa Clara, California, firm was established in 2005 and sells its products worldwide.
Executives
Paul Josh D. officer: Chief Accounting Officer 3000 TANNERY WAY SANTA CLARA CA 95054
Jenkins William D Jr officer: President C/O BARRACUDA NETWORKS INC 3175 S WINCHESTER BLVD CAMPBELL CA 95008
Bawa Aparna director C/O ZOOM VIDEO COMMUNICATIONS, INC. 55 ALMADEN BOULEVARD, 6TH FLOOR SAN JOSE CA 95113
Golechha Dipak officer: EVP, Chief Financial Officer 3000 TANNERY WAY SANTA CLARA CA 95054
Gayle Helene D director C/O COLGATE PALMOLIVE COMPANY 300 PARK AVENUE NEW YORK NY 10022
Visoso Luis Felipe officer: EVP, Chief Financial Officer C/O UNITY SOFTWARE INC. 30 3RD STREET SAN FRANCISCO CA 94103
Key John P. director 3000 TANNERY WAY SANTA CLARA CA 95054
Twohill Lorraine director 3250 VAN NESS AVENUE SAN FRANCISCO CA 94109
Singh Amit K. officer: President 3000 TANNERY WAY SANTA CLARA CA 95054
Arora Nikesh director, officer: Chief Executive Officer 3000 TANNERY WAY SANTA CLARA CA 95054
Compeau Jean officer: Chief Accounting Officer 3000 TANNERY WAY SANTA CLARA CA 95054
Bonanno Kathleen officer: EVP, Chief Financial Officer 3000 TANNERY WAY SANTA CLARA CA 95054
Ramaswamy Sridhar director 3000 TANNERY WAY SANTA CLARA CA 95054
Klarich Lee officer: Chief Product Officer 4401 GREAT AMERICA PKWY SANTA CLARA CA 95054
Mccarthy Mary Pat director 2704 WEST 112TH STREET LEAWOOD KS 66211

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