Positioning no disclosures inside 60 days, left as found
Options put/call open interest 1.78, read 2026-11-01
Ethical passes the values gate
Price365.87 USD
Fair value270.93
Ethical score70.0/100
RatingQUALITY, FULLY VALUED
Our investment reviews on this name
2026-10-28Read Markup370.27-1.2% to today Distribution gives way to Markup first Markup read since October
2026-10-21Read Distribution370.27-1.2% to today ✓Markup gives way to Distribution after a 36% rise in 16 weeks
2026-07-02Read Markup272.05+34.5% to today ✓First review on file: Markup
Our analytic regime reads on this name, dated and marked against the screened price. Small sample per name, and separate from the daily-framework accuracy on the Track Record page.
Palo Alto Networks holds its Distribution at $365.87. The statistical read favours the sellers, held for 143 days.
As held on the ledger · 2026-10-30
Phase
Distribution · caution
Quantitative state
The statistical read favours the sellers, held for 143 days
Price at the screen
$365.87
Valuation
951.43 trailing · 78.00 forward price to earnings
Values screen
PASS· score 70.0
Beta
0.93
The Workings
Five Screens, Shown in Full
Full pass across all five screens. This security clears the Titan Ethical Standard: its business and its balance sheet both stay inside the lines.
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
1.43%
Below 33%
Interest-bearing debt is just 1.4% of its assets, well under the one-third ceiling: it does not run on borrowed money.
Pass
Interest-bearing cash
23.56%
Below 33%
Cash held in interest-bearing accounts and securities is 23.6% of assets, under the one-third limit.
Pass
Receivables
22.20%
Below 49%
Money owed to the company is 22.2% of assets, under the 49% limit.
Pass
Revenue purity
3.94%
Below 5%
Only 3.9% of revenue comes from non-compliant sources, under the 5% line.
Pass
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
The Ethical Read
Why It Clears, in Plain English
Palo Alto Networks clears all five screens. Its business is in a permissible area, its debt is near-nil, and interest is about 4% of its income, under the ~5% line, so it passes.
Read as at 2026-10-31. It updates when the underlying figures move, and past reads are kept below.
Follow this verdict
Get an email when PANW's ethical verdict changes
Today PANW passes the screen. If new figures move it to a fail, we send you one short email with the before and after. Verdicts change rarely, so you may not hear from us for a long time.
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The quantitative screen above is arithmetic and this name passes it. Separately, community boycott lists cite this company: Listed by BDS Movement for: Founder Nir Zuk ex-Unit 8200 (Israeli Intelligence); ~$1B Israel investment; named partner on Israeli-customer contract; appears on grassroots BDS/Muslim boycott lists (masjidalaqsa, boycottisraeli). Not on official BDS tech target list, but our err-wide policy excludes. The desk records that flag here without folding it into the verdict: the screen measures the balance sheet, the overlay informs the conscience, and they are different judgements that belong to different owners. The second one is yours.
What the Numbers Say It Is Worth
The Fair Value Range
Our analysis reads QUALITY, FULLY VALUED: it trades above our $270.93 fair value estimate, moderate competitive moat, 34.50% revenue growth.
Fair value range in USD, drawn from the 2026-10-30 screen. The gold marker is the market price at the same screen. The price runs 25.9% above the base estimate.
Third-party analyst targets: 50 covering, consensus Buy. The average target sits +13% from the screen price.
Reading the gap · Our more conservative model reads it as fully-to-richly valued here, while the Street is more bullish: a quality-at-a-fair-price name rather than a deep-value one.
Imagine a world where every online transaction, every data transfer, every byte of information is under threat - that's the reality Palo Alto Networks combats. As a global leader in cybersecurity, their solutions, such as Prisma Access and Strata Cloud Manager, are critical in today's digital age. The numbers are impressive - revenue growth of 31% and a moderate competitive moat, yet the stock trades at a hefty 84.9x forward P/E, significantly above its fair value of $230.27, which is 34% below its current price. Why it stands out. The market is valuing Palo Alto Networks like a tech start-up, despite its maturity and established position in cybersecurity. This overvaluation doesn't align with the company's more measured growth prospects.
The risk is also clear - at a P/E of 84.9x, investors are paying a high premium for growth that may not materialize at the expected pace. With a profit margin of 8% and ROE of just 5%, the returns on investment are modest, especially when considering the stock's lofty valuation. The bullish consensus from 50 analysts, with a median target of $354, might be swayed by the company's reputation rather than its current valuation metrics.
This is a company that passes our ethical screen and contributes positively to society with its essential cybersecurity services. However, given the current overvaluation, we believe caution is warranted. Analysis, not advice.
Another profit measure, before interest, tax and non-cash costs: EBITDA.
The risks · The main risks here are ordinary market swings and the chance our fair-value read proves too optimistic.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
PANW trades on a US exchange. As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The Dated Journal · Newest First, Never Edited
Every Entry, As Written
2026-10-28Markup · changed$370.27+0.0%Entry 21
The framework has shifted from distribution to markup since the last review. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is holding around 44% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 34%. Our forward projection puts the odds of a 10% gain over the next month near 28%. The street (49 analysts) rates it buy, with a mean price target of $225. Insiders have been net sellers over the past quarter.
The framework has shifted from markup to distribution since the last review. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 11.6% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is holding around 31% above its long-term trend line with momentum reading bearish. Over the past year the shares are up 34%. Our forward projection puts the odds of a 10% gain over the next month near 28%. The street (49 analysts) rates it buy, with a mean price target of $225. Insiders have been net sellers over the past quarter.
2026-10-14Markup$418.78+11.8%Entry 19
The analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved up 11.8% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading overbought. Over the past year the shares are up 34%. Our forward projection puts the odds of a 10% gain over the next month near 28%. The street (49 analysts) rates it buy, with a mean price target of $225. Insiders have been net sellers over the past quarter.
2026-10-02Markup$374.74+7.2%Entry 18
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved up 7.2% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading overbought. Over the past year the shares are up 34%. Our forward projection puts the odds of a 10% gain over the next month near 28%. The street (49 analysts) rates it buy, with a mean price target of $225. Insiders have been net sellers over the past quarter.
2026-09-01Markup$349.56+0.0%Entry 17
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading overbought. Over the past year the shares are up 34%. Our forward projection puts the odds of a 10% gain over the next month near 28%. The street (49 analysts) rates it buy, with a mean price target of $225. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-08-31Markup$349.56+0.0%Entry 16
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading overbought. Over the past year the shares are up 34%. Our forward projection puts the odds of a 10% gain over the next month near 28%. The street (49 analysts) rates it buy, with a mean price target of $225. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-08-30Markup$349.56+0.0%Entry 15
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading overbought. Over the past year the shares are up 34%. Our forward projection puts the odds of a 10% gain over the next month near 28%. The street (49 analysts) rates it buy, with a mean price target of $225. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-08-29Markup$349.56+0.0%Entry 14
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading overbought. Over the past year the shares are up 34%. Our forward projection puts the odds of a 10% gain over the next month near 28%. The street (49 analysts) rates it buy, with a mean price target of $225. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-08-28Markup$349.56+0.0%Entry 13
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading overbought. Over the past year the shares are up 34%. Our forward projection puts the odds of a 10% gain over the next month near 28%. The street (49 analysts) rates it buy, with a mean price target of $225. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-08-27Markup$349.56+0.0%Entry 12
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading overbought. Over the past year the shares are up 34%. Our forward projection puts the odds of a 10% gain over the next month near 28%. The street (49 analysts) rates it buy, with a mean price target of $225. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
