| 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 | $197B | |||||
| 2021 | - | - (-) | P/E Ratio | 135 | Total Asset | $24B | |||||
| 2022 | $2B | - (-) | Net Income | $1B | Total Debt | $0 | |||||
| 2023 | $3B | 46.8% (17.2%) | EBITDA | $2B | Total Liab | $16B | |||||
| 2024 | $3B | 17.8% (1.2%) | Opr Margin | 13.48 | Debt/Equity | - | |||||
| 2025 | $3B | 11.9% (-2.6%) | PreTax Margin | 13.46 | BV/Share | 3 | |||||
| 5Y Average FCF | $3B | 15.0% (5.3%) | |||||||||
| Overall Market Assumptions: | |||||||||||
| Assumptions: | P/E for No-Growth Company: | 7.0 | |||||||||
| Perpetual Growth Rate (g): | 2.48% | Historical US Bond Yield: | 4.40% | ||||||||
| Discount Rate (WACC): | 7.71% | Current US Bond Yield: | 3.48% | ||||||||
| Forcasting Future Free Cash Flow for next 6Y | Modified Benjamin Graham's Intrinsic Value | ||||||||||
| Year | FCF Projection (15.0%) | ||||||||||
| 2026 | $4B | MBG Intrinsic Value | $16 | ||||||||
| 2027 | $4B | ||||||||||
| 2028 | $5B | ||||||||||
| 2029 | $5B | ||||||||||
| 2030 | $5B | ||||||||||
| 2031 | $5B | ||||||||||
| Terminal Value | $105B | Net Worth/Share | $10 | ||||||||
| DCF Valuation | DCF Valuation "What If" Scenario Table | ||||||||||
| Enterprise Value | $89B | Growth Rate | |||||||||
| (+) Cash & Cash Equivalents | $2B | $112 | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | ||||
| (-) Total Debt | $0 | WACC | 6.5% | 122 | 132 | 146 | 163 | 185 | |||
| Equity Value | $91B | 7.3% | 105 | 113 | 122 | 133 | 147 | ||||
| Shares Outstanding | 811,000,000 | 8.1% | 92 | 98 | 104 | 112 | 121 | ||||
| 8.9% | 82 | 87 | 91 | 97 | 104 | ||||||
| DCF Intrinsic Value | $112 | 9.7% | 74 | 78 | 81 | 86 | 90 | ||||
| Analyzed by QuantJuice (2025) | |||||||||||