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On Nov. 20 Palo Alto Networks (PANW) announced a 2-for-1 stock split with an ex-date of Dec. 12, along with stellar earnings and free cash flow (FCF) results for its fiscal Q1 (ending Oct. 31). As a result, value investors are taking note, given that the company guided for very strong FCF margins for this fiscal year ending July 31, 2025.
PANW is trading at $386.77 in morning trading on Friday, Nov. 29. Based on analysts' revenue projections, PANW stock has an underlying value of at least 18% higher or $456 per share. This article will delve into that valuation.