PANW - Risk

Pure Price Volatility Risk (Market Swings)

The business itself is financially solid (Financial Health 80/100, minimal insolvency risk). The high overall score (7/7) is driven primarily by extreme stock price swings (±43.1% p.a.) and steep historical drawdowns.

Volatility Risk

Transparent evaluation of price volatility (SRI), Beta, and historical drawdowns.

Volatility Risk Score

7/7 Very High

7 / 7 SRI Price Fluctuation & Beta

Very high volatility or fundamental risks. Significant loss potential; strictly for aggressive investors. Largely moves in line with the broader market.

Beta (Market Relation)

0.93x

Defensive

Volatility (5Y p.a.)

43.1% p.a.

5-Year Horizon

Max Drawdown (5Y)

-36.0%

5-Year Horizon

Sharpe Ratio

0.80

Return / Risk

Speculative / High Risk: Score Basis:

Multi-Horizon Risk & Performance Matrix

Historical volatility, drawdowns, and risk-adjusted return across 1, 3, 5, and 10 years.

High Volatility

Timeframe	Volatility (p.a.)	Max Drawdown	Sharpe Ratio	Return (p.a.)
1 Year	—	—	—	+83%
3 Years	42.8%	-36.0%	1.03	+46.6%
5 Years	43.1%	-36.0%	0.8	+37.1%
10 Years	39.6%	-48.0%	0.72	+31.1%

Automated Risk & Health Notes (Red Flags)

Single Stock Risk: Investing in an individual stock carries full company and insolvency risk (no fund diversification).

Exemplary balance sheet strength: Very solid ratio of equity to debt.

🔴 High valuation risk: Avg P/E of 1047.0 (Elevated multiple compression risk)

Structurally High Volatility: Above-average fluctuations persist across 5 to 10 years (43.1% p.a.).