PANWNEUTRAL

EV/EBITDA

193.8x

Updated 56h ago

Sector Performance

99th percentile

PANW

193.8x

Sector Median

13.7x

Sector Avg

18.7x

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Deep Analysis

The EV/EBITDA ratio compares a company's total enterprise value (market cap plus debt minus cash) to its earnings before interest, taxes, depreciation, and amortization.

A ratio of 193.8x means investors are paying nearly 194 times the company's operating profit for the entire business, a very expensive valuation. That multiple is far above the sector median of 13.4x, placing PANW in the 99th percentile among peers. Over the last eight quarters the metric has been increasing, with the most recent quarter-over-quarter change showing a rise of +8.7% (year-over-year change is not available). The combination of an extremely high valuation and a rising trend implies increased downside risk if future growth fails to justify the premium. This metric contradicts the overall NEUTRAL verdict, as such an elevated and climbing multiple typically signals overvaluation rather than a balanced risk-reward profile.

Frequently Asked Questions

What does the EV/EBITDA tell investors about PANW?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

Who are PANW's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: LSPD (-24.2x), BRZE (-24.5x), EVGO (-25.7x), NIO (-36.8x), SNAP (-38.8x).

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.