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Barchart
Barchart
Mark R. Hake, CFA

Palo Alto Networks Is Gushing Huge Amounts of Free Cash Flow - PANW Stock Could Be Worth 20% More

Palo Alto Networks (PANW) delivered adj. free cash flow results yesterday for its fiscal year ending July 31, 2024. It produced $3.12 billion in adj. free cash flow (FCF), which represents a very high 38.9% FCF margin (i.e., FCF/revenue). That bodes very well for PANW stock going forward, despite the recent rise in its shares

PANW is up over 8.6% today at $373 per share. Based on analysts' revenue forecasts for the next two years and Palo Alto's own FCF margin projection, PANW stock could be worth 20% more at over $448 per share.

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