Update shared on08 Aug 2025
Fair value Decreased 16%Fortinet’s fair value estimate has been significantly lowered, primarily due to a notable contraction in its forward P/E multiple despite stable revenue growth forecasts, resulting in the consensus price target dropping from $109.88 to $93.46.
What's in the News
- Fortinet announced a major expansion of its FortiCloud platform, introducing FortiIdentity (cloud-native identity management), FortiDrive (secure storage), and FortiConnect (protected communications), all natively integrated with its Security Fabric, furthering its unified platform strategy and supporting hybrid workforces with global infrastructure investments (Key Developments, 2025-08-06).
- Innovations in FortiOS bring quantum-safe encryption capabilities, allowing organizations with sensitive data to deploy robust defenses against emerging quantum-computing threats and offering a hybrid mode for a gradual migration to post-quantum security (Key Developments, 2025-07-22).
- Enhanced cloud and application security includes updates to Lacework FortiCNAPP for faster threat detection, unified cloud-native protection, and expanded availability of Fortinet's security offerings (FortiAppSec, FortiMail Workspace Security, FortiNDR Cloud, FortiSIEM, Incident Response services) in the AWS Marketplace, streamlining cloud procurement and deployment (Key Developments, 2025-06-17).
- Fortinet's partnership with Great Plains Communications highlights growing adoption of FortiGate Next-Generation Firewalls for managed cybersecurity services targeting small and medium-sized businesses, delivering integrated protection with AI-powered threat detection and regulatory compliance features (Key Developments, 2025-08-05).
- Fortinet was dropped from several Russell value indices but added to the Russell 1000 Defensive and Russell 1000 Growth-Defensive indices, reflecting a shift in its index classifications; additionally, persistent sector relevance is highlighted as Fortinet is named among leading cybersecurity firms in the context of major geopolitical cyber incidents (Key Developments, Periodicals, 2025-06-28 to 2025-06-17; Bloomberg/IRIB, 2025-06-17).
Valuation Changes
Summary of Valuation Changes for Fortinet
- The Consensus Analyst Price Target has significantly fallen from $109.88 to $93.46.
- The Future P/E for Fortinet has significantly fallen from 45.79x to 37.89x.
- The Consensus Revenue Growth forecasts for Fortinet remained effectively unchanged, moving only marginally from 13.6% per annum to 13.3% per annum.
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