Palo Alto Networks: Investor Misunderstanding

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

Summary

  • 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.
  • Looking for a portfolio of ideas like this one? Members of Asymmetric Tech Investments get exclusive access to our model portfolio. Learn More »

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

NicoElNino/iStock via Getty Images

Intro

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

Convequity

PANW: market caps comparison

Convequity

PANW Sum-of-Parts Relative Valuation

Convequity

PANW Sum-of-Parts Relative Valuation

Convequity

Ransomware Attacks Have Spiked and Remain Elevated Since the Pandemic

Security Boulevard

High-Level Catalysts Driving the Cybersecurity Industry

Convequity

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

Crunchbase, Convequity

Gartner's Magic Quadrant for SSE

Gartner

Daily Incidents Related to Cloud Misconfigurations

Fugue

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

Palo Alto Networks

CISO needs

Gartner

Incredible Transformation in the Past Few Years

Palo Alto Networks

Become a member of Asymmetric Tech Investments to gain the information edge required to maximize long-term returns in the tech sector. Receive 50% time-limited legacy discount - this equates to $380 per year, fixed for life. Offer ends when we reach 50 members.  

This article was written by

Convequity profile picture
3.36K Followers
Obtain high-conviction information edge with unique insights

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.

Recommended For You

Comments (9)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.