PANW - Embedded Expectations Analysis - 2020 02 07
ï€ Palo Alto Networks, Inc. (PANW:USA) currently trades above recent averages relative to UAFRS-based (Uniform) Earnings, with a 35.3x Uniform P/E. However, even at these levels, the market has bearish expectations for the firm, but management is confident about their positioning, billings, and cloud securityï€ Specifically, management is confident they have made significant progress moving into a leading position in cloud security, and they are confident that they can fix product billings issues in upcoming quarters to deliver on their 25% long-term CAGR guidance. Moreover, they are confident they are doing something different by integrating three separate platforms under Prisma Cloud and that they see a ‘shift left' mentality becoming a larger part of cloud security practice
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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- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
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