Palo Alto Networks (NAS:PANW) GF Value Rank

: 3 (As of Today)

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Palo Alto Networks has the GF Value Rank of 3.

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.

Annual Data Quarterly Data

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

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Palo Alto Networks (NAS:PANW) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Palo Alto Networks Inc (NAS:PANW) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

PANW:Mexico 5AP:Germany PANW:Austria

Address

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

Website

https://www.paloaltonetworks.com

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 85,000 customers across the world, including more than three fourths of the Global 2000.

Executives

James J Goetz	director	C/O SEQUOIA CAPITAL, 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025
Josh D. Paul	officer: Chief Accounting Officer	3000 TANNERY WAY, SANTA CLARA CA 95054
Jenkins William D Jr	officer: President	C/O PALO ALTO NETWORKS INC, 3000 TANNERY WAY, SANTA CLARA CA 95054
Aparna Bawa	director	C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Dipak Golechha	officer: EVP, Chief Financial Officer	3000 TANNERY WAY, SANTA CLARA CA 95054
Helene D Gayle	director	C/O COLGATE PALMOLIVE COMPANY, 300 PARK AVENUE, NEW YORK NY 10022
Luis Felipe Visoso	officer: EVP, Chief Financial Officer	C/O UNITY SOFTWARE INC., 30 3RD STREET, SAN FRANCISCO CA 94103
John P. Key	director	3000 TANNERY WAY, SANTA CLARA CA 95054
Lorraine Twohill	director	3250 VAN NESS AVENUE, SAN FRANCISCO CA 94109
Amit K. Singh	officer: President	3000 TANNERY WAY, SANTA CLARA CA 95054
Nikesh Arora	director, officer: Chief Executive Officer	3000 TANNERY WAY, SANTA CLARA CA 95054
Jean Compeau	officer: Chief Accounting Officer	3000 TANNERY WAY, SANTA CLARA CA 95054
Kathleen Bonanno	officer: EVP, Chief Financial Officer	3000 TANNERY WAY, SANTA CLARA CA 95054
Sridhar Ramaswamy	director	3000 TANNERY WAY, SANTA CLARA CA 95054
Lee Klarich	officer: Chief Product Officer	4401 GREAT AMERICA PKWY, SANTA CLARA CA 95054