PANWNEUTRAL

PANW P/E Ratio Analysis

257.0x

Updated 225h ago·SEC filings & market data

Key Takeaway

The P/E ratio of 257.0x means investors are paying $257 for every $1 of the company's past earnings, indicating a high premium relative to earnings.

Sector Performance

100th percentile

PANW

257.0x

Sector Median

23.1x

Sector Avg

33.7x

Prior Period

270.6x(Jul 2026)

↑ Improving

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Deep Analysis

The P/E ratio of 257.0x means investors are paying $257 for every $1 of the company's past earnings, indicating a high premium relative to earnings.

This is far above the sector median of 24.3x, placing PANW in the 99th percentile among sector peers. The metric has been increasing over the last eight quarters, though the quarter-over-quarter change shows a decline of -5.1% (from 270.6x to 257.0x); year-over-year change is not available. The combination of an extremely elevated P/E level with a generally rising trend, despite the recent quarter’s dip, points to heightened valuation risk if earnings do not grow to justify the price. This level of overvaluation relative to peers makes the stock more sensitive to earnings disappointments. The P/E metric directly contradicts the overall NEUTRAL verdict because it signals a stretched valuation that typically warrants a cautious or negative bias.

Frequently Asked Questions

What does the P/E Ratio tell investors about PANW?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

Who are PANW's closest peers by P/E Ratio?

The closest peers by P/E Ratio include: BROS (99.7x), WELL (102.4x), IAC (104.9x), FORM (108.1x), MCHP (113.5x).

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The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.