Cloudflare Inc (NET) is overvalued and Palo Alto Networks Inc (PANW) is overvalued.
Both trade above our estimate of their intrinsic value. PANW is the closer of the two: -152%, against -758% for NET.
Values as of the 22 Sept 2026 close.
A 6.2x revenue multiple, discounted for its losses, values the shares at $41.13; the price of $353.00 is 758% above that value.
Leak Score 46/100 on 7 of 12 signals
A 10.4x revenue multiple, adjusted for growth and margin, values the shares at $148.73; the price of $374.57 is 152% above that value.
Leak Score 53/100 on 9 of 12 signals
| Metric | NET | PANW |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $353.00 | $374.57 |
| Intrinsic value | $41.13 | $148.73 |
| Margin of safety | -758% | -152% |
| Leak Score | 46/100 (7/12) | 53/100 (9/12) |
| Market cap | $125.7B | $306.4B |
| Revenue growth, 5 years | 38.1% | 21.9% |
| Operating margin | -7.9% | 5.4% |
| Net margin | -8.2% | 2.7% |
| Return on equity | -14.4% | 1.7% |
| Debt to equity | 2.18 | 0.09 |
| P/E | — | 730.9x |
| Forward P/E | 211.0x | 76.9x |
| P/B | 77.6x | 11.1x |