Palo Alto Networks Is Worth Nearly $300 Billion. A Year Ago It Was Worth About $113 Billion.

Palo Alto Networks' market value nearly tripled in a year from $113 billion to $295 billion, but the underlying business growth doesn't justify the valuation increase. While the company showed solid Q3 results with 31% revenue growth and strong next-generation security ARR growth of 60%, much of this came from acquisitions. The stock now trades at 96x forward earnings, pricing in years of excellent execution with limited margin of safety.