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Palo Alto Networks (Palo Alto Networks) E10 : $-0.07 (As of Apr. 2024)


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What is Palo Alto Networks E10?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Palo Alto Networks's adjusted earnings per share data for the three months ended in Apr. 2024 was $0.790. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $-0.07 for the trailing ten years ended in Apr. 2024.

During the past 3 years, the average E10 Growth Rate was -7.70% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the E10 growth rate using E10 data.

During the past 13 years, the highest 3-Year average E10 Growth Rate of Palo Alto Networks was -7.70% per year. The lowest was -7.70% per year. And the median was -7.70% per year.

As of today (2024-05-27), Palo Alto Networks's current stock price is $321.60. Palo Alto Networks's E10 for the quarter that ended in Apr. 2024 was $-0.07. Palo Alto Networks's Shiller PE Ratio of today is .


Palo Alto Networks E10 Historical Data

The historical data trend for Palo Alto Networks's E10 can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Palo Alto Networks E10 Chart

Palo Alto Networks Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only - -0.64 -0.82 -0.91 -0.80

Palo Alto Networks Quarterly Data
Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24
E10 Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.86 -0.80 -0.74 -0.23 -0.07

Competitive Comparison of Palo Alto Networks's E10

For the Software - Infrastructure subindustry, Palo Alto Networks's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Palo Alto Networks's Shiller PE Ratio Distribution in the Software Industry

For the Software industry and Technology sector, Palo Alto Networks's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Palo Alto Networks's Shiller PE Ratio falls into.



Palo Alto Networks E10 Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today's price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, Palo Alto Networks's adjusted earnings per share data for the three months ended in Apr. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Apr. 2024 (Change)*Current CPI (Apr. 2024)
=0.79/131.7762*131.7762
=0.790

Current CPI (Apr. 2024) = 131.7762.

Palo Alto Networks Quarterly Data

per share eps CPI Adj_EPS
201407 -0.137 100.520 -0.180
201410 -0.127 100.176 -0.167
201501 -0.177 98.604 -0.237
201504 -0.187 99.824 -0.247
201507 -0.183 100.691 -0.239
201510 -0.157 100.346 -0.206
201601 -0.220 99.957 -0.290
201604 -0.243 100.947 -0.317
201607 -0.203 101.524 -0.263
201610 -0.210 101.988 -0.271
201701 -0.223 102.456 -0.287
201704 -0.223 103.167 -0.285
201707 -0.140 103.278 -0.179
201710 -0.233 104.070 -0.295
201801 -0.093 104.578 -0.117
201804 -0.147 105.708 -0.183
201807 -0.007 106.324 -0.009
201810 -0.137 106.695 -0.169
201901 -0.010 106.200 -0.012
201904 -0.070 107.818 -0.086
201907 -0.073 108.250 -0.089
201910 -0.207 108.577 -0.251
202001 -0.250 108.841 -0.303
202004 -0.257 108.173 -0.313
202007 -0.203 109.318 -0.245
202010 -0.323 109.861 -0.387
202101 -0.493 110.364 -0.589
202104 -0.500 112.673 -0.585
202107 -0.410 115.183 -0.469
202110 -0.350 116.696 -0.395
202201 -0.320 118.619 -0.355
202204 -0.250 121.978 -0.270
202207 0.010 125.002 0.011
202210 0.060 125.734 0.063
202301 0.250 126.223 0.261
202304 0.310 127.992 0.319
202307 0.640 128.974 0.654
202310 0.560 129.810 0.568
202401 4.890 130.124 4.952
202404 0.790 131.776 0.790

Add all the adjusted EPS together and divide 10 will get our e10.


Palo Alto Networks  (NAS:PANW) E10 Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


Palo Alto Networks E10 Related Terms

Thank you for viewing the detailed overview of Palo Alto Networks's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


Palo Alto Networks (Palo Alto Networks) Business Description

Traded in Other Exchanges
Address
3000 Tannery Way, Santa Clara, CA, USA, 95054
Palo Alto Networks is a platform-based cybersecurity vendor with product offerings covering network security, cloud security, and security operations. The California-based firm has more than 85,000 customers across the world, including more than three fourths of the Global 2000.
Executives
John Donovan director 208 S. AKARD ST. , ROOM 3025, DALLAS TX 75202
Nir Zuk director, officer: CTO 3000 TANNERY WAY, SANTA CLARA CA 95054
John P. Key director 3000 TANNERY WAY, SANTA CLARA CA 95054
Dipak Golechha officer: EVP, Chief Financial Officer 3000 TANNERY WAY, SANTA CLARA CA 95054
Nikesh Arora director, officer: Chief Executive Officer 3000 TANNERY WAY, SANTA CLARA CA 95054
Lee Klarich officer: Chief Product Officer 4401 GREAT AMERICA PKWY, SANTA CLARA CA 95054
Josh D. Paul officer: Chief Accounting Officer 3000 TANNERY WAY, SANTA CLARA CA 95054
Jenkins William D Jr officer: President C/O PALO ALTO NETWORKS INC, 3000 TANNERY WAY, SANTA CLARA CA 95054
Aparna Bawa director C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Carl M. Eschenbach director C/O SEQUOIA CAPITAL, 2800 SAND HILL ROAD, SUITE 101, PALO ALTO CA 94025
James J Goetz director C/O SEQUOIA CAPITAL, 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025
Mark D Mclaughlin director, officer: President & CEO C/O PALO ALTO NETWORKS, INC., 4401 GREAT AMERICA PKWY, SANTA CLARA CA 95054
Amit K. Singh officer: President 3000 TANNERY WAY, SANTA CLARA CA 95054
Helene D Gayle director C/O COLGATE PALMOLIVE COMPANY, 300 PARK AVENUE, NEW YORK NY 10022
Jean Compeau officer: Chief Accounting Officer 3000 TANNERY WAY, SANTA CLARA CA 95054