Report
Valens Research

PANW - Embedded Expectations Analysis - 2017 12 18

 Palo Alto Networks, Inc. (PANW:USA) currently trades near historical averages relative to UAFRS-based (Uniform) Earnings, with a 31.6x Uniform P/E. At these levels, the market has bearish expectations for the firm, while management has concerns about guidance and their fundamental outlook

 Specifically, management may lack confidence in their ability to achieve their Q2 2018 revenue guidance and FY 2018 billings guidance. They also appear concerned about the sustainability of strength in net new customer acquisitions, and may have concerns about declines in contract duration
Underlying
Palo Alto Networks Inc.

Palo Alto Networks provides a platform that allows enterprises, service providers, and government entities to secure their organizations. The company's platform uses a traffic classification engine that identifies network traffic by application, user, and content and provides security across the network, endpoint, and cloud. The company's product, subscription, and support offerings include: firewall appliances and software; and Panorama, which is a centralized security management solution for global control of various firewall appliances and software deployed on an end-customer's network as well as in their instances in public or private cloud environments as a virtual appliance or a physical appliance.

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Valens Research
Valens Research

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