Palo Alto Networks Becomes First Company to Exceed Trillion Shekels on Tel Aviv Stock Exchange

Palo Alto Networks has made history on the Tel Aviv Stock Exchange (TASE) by becoming the first company to surpass a market capitalization of one trillion shekels. This milestone was achieved following a significant surge of approximately 93% in the company's stock value over the past year.

The company's listing in Tel Aviv is not an IPO or a capital raise, but rather a trading of the same shares listed on NASDAQ, denominated in shekels and during local trading hours. Consequently, its valuation on the Israeli exchange is influenced by both the U.S. stock price and the dollar-shekel exchange rate. A recent slight weakening of the shekel has contributed to the increase in its shekel-denominated value.

However, the primary driver remains the substantial rise in the stock itself. Palo Alto Networks' share price reached an all-time high on Wall Street at $399.03, completing a nearly 92.6% increase over the last year, with a global market cap of around $325 billion.

This valuation places Palo Alto Networks significantly ahead of other major companies on the TASE. Teva Pharmaceutical Industries, the next largest, is valued at approximately 143 billion shekels, and Bank Leumi at about 110 billion shekels. This means Palo Alto Networks is seven times larger than Teva and nine times larger than Bank Leumi.

In August, Palo Alto Networks was added to the TASE's flagship indices, the TA-35 and TA-125. Due to index rules, its weighting in these indices is gradually increasing and does not yet fully reflect its relative market share. These indices also have weight limitations, preventing even a company with an exceptional valuation like Palo Alto Networks from having a free float weight corresponding to its actual size.