| PANW Stock | | | 24.35 0.28 1.16% |
Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Check out
Your Equity Center to better understand how to build diversified portfolios, which includes a position in PALO ALTO NETWORKS. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as
signals in board of governors.
PALO ALTO NETWORKS Company Z Score Analysis
PALO ALTO's Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
| First Factor | = | 1.2 * ( | Working Capital | / | Total Assets ) |
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| Second Factor | = | 1.4 * ( | Retained Earnings | / | Total Assets ) |
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| Thrid Factor | = | 3.3 * ( | EBITAD | / | Total Assets ) |
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| Fouth Factor | = | 0.6 * ( | Market Value of Equity | / | Total Liabilities ) |
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| Fifth Factor | = | 0.99 * ( | Revenue | / | Total Assets ) |
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To calculate a Z-Score, one would need to know a company's current working capital, its total assets and liabilities, and the amount of its latest earnings as well as earnings before interest and tax. Z-Scores can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area,' with scores of less than 1 indicating the highest probability of distress. Z Score is a used widely measure by financial auditors, accountants, money managers, loan processors, wealth advisers, and day traders. In the last 25 years, many financial models that utilize z-scores proved it to be successful as a predictor of corporate bankruptcy.
Based on the company's disclosures, PALO ALTO NETWORKS has a Z Score of 0.0. This is 100.0% lower than that of the Technology sector and 100.0% lower than that of the
Software - Infrastructure industry. The z score for all Canada stocks is 100.0% higher than that of the company.
PALO Z Score Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses PALO ALTO's direct or indirect competition against its Z Score to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of PALO ALTO could also be used in its relative valuation, which is a method of valuing PALO ALTO by comparing valuation metrics of similar companies.
PALO ALTO is currently under evaluation in z score category among its peers.
PALO Fundamentals
About PALO ALTO Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze PALO ALTO NETWORKS's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of PALO ALTO using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at
the intrinsic value of PALO ALTO NETWORKS based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing
financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our
fundamental analysis page.
Pair Trading with PALO ALTO
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if PALO ALTO position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PALO ALTO will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to PALO ALTO could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace PALO ALTO when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back PALO ALTO - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling PALO ALTO NETWORKS to buy it.
The correlation of PALO ALTO is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as PALO ALTO moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if PALO ALTO NETWORKS moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for PALO ALTO can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
When determining whether PALO ALTO NETWORKS is a strong investment it is important to analyze PALO ALTO's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact PALO ALTO's
future performance.
For an informed investment choice regarding PALO Stock, refer to the following important reports: Check out
Your Equity Center to better understand how to build diversified portfolios, which includes a position in PALO ALTO NETWORKS. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as
signals in board of governors.
You can also try the
Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Please note, there is a significant difference between PALO ALTO's value and its price as these two are different measures arrived at by different means. Investors typically determine if PALO ALTO is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, PALO ALTO's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.