| Intrinsic Valuation of: PANW | |||||||||||
| Free Cash Flow Average and Growth over past 5Y | Key Statistics | ||||||||||
| Year | FCF | FCF (FCF/Revenue) | |||||||||
| 2020 | - | - | EPS (FY) | 2 | Market Cap | $132B | |||||
| 2021 | - | - (-) | P/E Ratio | 114 | Total Asset | $20B | |||||
| 2022 | $1B | - (-) | Net Income | $3B | Total Debt | $0 | |||||
| 2023 | $2B | 29.2% (-0.1%) | EBITDA | $1B | Total Liab | $15B | |||||
| 2024 | $3B | 46.8% (17.2%) | Opr Margin | 0.09 | Debt/Equity | - | |||||
| 2025 | $3B | 17.8% (1.2%) | PreTax Margin | 8.46 | BV/Share | 2 | |||||
| 5Y Average FCF | $2B | 31.3% (6.1%) | |||||||||
| Overall Market Assumptions: | |||||||||||
| Assumptions: | P/E for No-Growth Company: | 7.0 | |||||||||
| Perpetual Growth Rate (g): | 2.5% | Historical US Bond Yield: | 4.4% | ||||||||
| Discount Rate (WACC): | 7.4% | Current US Bond Yield: | 3.5% | ||||||||
| Forcasting Future Free Cash Flow for next 6Y | Modified Benjamin Graham's Intrinsic Value | ||||||||||
| Year | FCF Projection (25.0%) | ||||||||||
| 2026 | $4B | MBG Intrinsic Value | $16 | ||||||||
| 2027 | $5B | ||||||||||
| 2028 | $6B | ||||||||||
| 2029 | $8B | ||||||||||
| 2030 | $9B | ||||||||||
| 2031 | $12B | ||||||||||
| Terminal Value | $246B | Net Worth/Share | $8 | ||||||||
| DCF Valuation | DCF Valuation "What If" Scenario Table | ||||||||||
| Enterprise Value | $193B | Growth Rate | |||||||||
| (+) Cash & Cash Equivalents | $2B | $291 | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | ||||
| (-) Total Debt | $0 | WACC | 7.3% | 254 | 274 | 298 | 328 | 365 | |||
| Equity Value | $194B | 7.4% | 251 | 271 | 294 | 324 | 360 | ||||
| Shares Outstanding | 666,800,000 | 7.4% | 249 | 268 | 291 | 320 | 355 | ||||
| 7.9% | 228 | 243 | 262 | 285 | 313 | ||||||
| DCF Intrinsic Value | $291 | 8.4% | 209 | 223 | 238 | 257 | 279 | ||||
| Analyzed by QuantJuice (2025) | |||||||||||