PANW is an equity-heavy company, with approximately 96% of its capital structure comprised of equity and 4% of debt. I have its cost of equity at around 11.3% and cost of debt at around 4%, leaving a cost of capital of just shy of 11%. The liberal operating performance assumptions seen in the last post backs out a fair share price of $138, or approximately equal to its current $136. Sensitivity adjustments of +/- 50 bps for error estimation or other inexactitudes in the computing the long-term growth rate, g, or company’s cost of capital gives a range estimation between $121-$160 per share. Given that I’m skeptical that the company can maintain 30% growth in the near-term and maintain 14% by 2026 even despite the competitive cybersecurity market and slowdown in IT security spending, I find 8x revenue growth by 2026 hard to fathom. Moreover, this also implies EBITDA margin expansion of 5000 bps by 2026. Bottom line PANW is probably overrated on the basis of growth and is a terrible idea on the basis of value. Definite and clear pass on this one.