Palo Alto Networks: Investor Misunderstanding

May 24, 2022 8:28 AM ETPalo Alto Networks, Inc. (PANW)CRWD, FTNT, NET, S9 Comments


  • We pick out the bearish and bullish points from Palo Alto Networks' recent 3Q22 ER.
  • Compare PANW’s valuation to an aggregate of CHKP, ZS, and CRWD.
  • Recap on the main drivers of the cybersecurity industry.
  • We use the landscape of the cybersecurity industry as a framework to articulate PANW’s outlook.
  • Also, we compare PANW against CRWD and S in endpoint security.
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Cyber security IT engineer working on protecting network against cyberattack from hackers on internet. Secure access for online privacy and personal data protection. Hands typing on keyboard and PCB

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Apart from the recent market turmoil, Palo Alto Networks (NASDAQ:PANW) is very mispriced due to a lack of investor understanding. We aim to lay out the cybersecurity industry dynamics that will make it one

PANW Key Financial Trends


PANW: market caps comparison


PANW Sum-of-Parts Relative Valuation


PANW Sum-of-Parts Relative Valuation


Ransomware Attacks Have Spiked and Remain Elevated Since the Pandemic

Security Boulevard

High-Level Catalysts Driving the Cybersecurity Industry


Pre-IPO Funding & Revenue Estimates of High-Growth SaaS Vendors

Crunchbase, Convequity

Gartner's Magic Quadrant for SSE


Daily Incidents Related to Cloud Misconfigurations


PANW's Prisma Cloud Growing Customer Base [fiscal year ends 31st July]

Palo Alto Networks

CISO needs


Incredible Transformation in the Past Few Years

Palo Alto Networks

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This article was written by

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Long-time tech investors with special interests in cybersecurity and cloud-related stocks. Recently we decided to turn our passion into an equity research business called Convequity. We combine quantitative and qualitative methods to gain a deep understanding of a company's business, products, and markets, and the stock's intrinsic valuation. Our process aids us to identify companies in-process of developing wide and sustainable moats with the promise of exceptional long-term returns. 

Disclosure: I/we have a beneficial long position in the shares of PANW either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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