PANW — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($150.15)
DCF	$1192.10	+693.9%
Graham Number	$23.26	-84.5%
Reverse DCF	—	implied g: 20.2%
DDM	—	—
EV/EBITDA	$150.15	+0.0%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $2.80B

Near-term growth (yrs 1–5)(%)Rev: 14.9% / EPS: 60.5%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.40%

Computed WACC: 8.40%

Cost of equity (Re)8.42%(Rf 4.30% + β 0.75 × ERP 5.50%)

Cost of debt (Rd)0.65%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)99.63%

Debt weight (D/V)0.37%

Results

Intrinsic Value / share$1355.76

Current Price$150.15

Upside / Downside+802.9%

Net Debt (used)-$4.08B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	52.5%	56.5%	60.5%	64.5%	68.5%
7.0%	$1483.91	$1686.18	$1910.10	$2157.34	$2429.71
8.0%	$1154.01	$1310.73	$1484.20	$1675.71	$1886.66
9.0%	$929.30	$1055.01	$1194.13	$1347.70	$1516.83
10.0%	$767.44	$870.82	$985.21	$1111.47	$1250.50
11.0%	$646.03	$732.68	$828.53	$934.32	$1050.78

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $1.80

Book Value / share($)Yahoo: $13.36

Results

Graham Number$23.26

Current Price$150.15

Margin of Safety-84.5%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.40%

Terminal growth rate(%)

Computed WACC: 8.40%

Cost of equity (Re)8.42%(Rf 4.30% + β 0.75 × ERP 5.50%)

Cost of debt (Rd)0.65%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)99.63%

Debt weight (D/V)0.37%

Results

Current Price$150.15

Implied Near-term FCF Growth18.3%

Historical Revenue Growth14.9%

Historical Earnings Growth60.5%

Base FCF (TTM)$2.80B

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: —

Dividend growth rate (g)(%)

Required return (r)(%)

Results

This company does not pay a dividend. DDM is not applicable — the intrinsic value shown uses D0 = $0 unless you enter a hypothetical dividend above.

DDM Intrinsic Value / share—

Current Price$150.15

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.45B

Target EV/EBITDA multipleCurrent: 81.7×

Net Debt($B)Default: -$4.08B

Results

Implied Equity Value / share$150.15

Current Price$150.15

Upside / Downside+0.0%

Implied EV$118.45B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	-$6.08B	-$5.08B	-$4.08B	-$3.08B	-$2.08B
77.7x	$145.50	$144.27	$143.05	$141.82	$140.59
79.7x	$149.05	$147.82	$146.60	$145.37	$144.15
81.7x	$152.60	$151.38	$150.15	$148.93	$147.70
83.7x	$156.15	$154.93	$153.70	$152.48	$151.25
85.7x	$159.71	$158.48	$157.26	$156.03	$154.81

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