Fortinet, Inc.

NasdaqGS:FTNT Stock Report

Market Cap: US$63.1b

Fortinet Valuation

Is FTNT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of FTNT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FTNT ($82.87) is trading below our estimate of fair value ($122.85)

Significantly Below Fair Value: FTNT is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FTNT?

Other financial metrics that can be useful for relative valuation.

FTNT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue11x
Enterprise Value/EBITDA39x
PEG Ratio3.9x

Price to Earnings Ratio vs Peers

How does FTNT's PE Ratio compare to its peers?

The above table shows the PE ratio for FTNT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average67.8x
PANW Palo Alto Networks
47.1x-2.5%US$120.3b
NOW ServiceNow
168.6x22.4%US$194.5b
CHKP Check Point Software Technologies
27.5x5.1%US$23.0b
GEN Gen Digital
28x14.4%US$17.1b
FTNT Fortinet
48.3x12.4%US$63.1b

Price-To-Earnings vs Peers: FTNT is good value based on its Price-To-Earnings Ratio (48.3x) compared to the peer average (67.8x).

Price to Earnings Ratio vs Industry

How does FTNT's PE Ratio compare vs other companies in the US Software Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.9%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.9%
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Price-To-Earnings vs Industry: FTNT is expensive based on its Price-To-Earnings Ratio (48.3x) compared to the US Software industry average (40.4x).

Price to Earnings Ratio vs Fair Ratio

What is FTNT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FTNT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio48.3x
Fair PE Ratio43.4x

Price-To-Earnings vs Fair Ratio: FTNT is expensive based on its Price-To-Earnings Ratio (48.3x) compared to the estimated Fair Price-To-Earnings Ratio (43.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst FTNT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$82.87
US$75.19
-9.3%
9.8%US$90.14US$62.00n/a36
Oct ’25US$76.49
US$73.75
-3.6%
9.2%US$90.14US$62.00n/a36
Sep ’25US$76.71
US$72.80
-5.1%
9.7%US$90.14US$59.00n/a36
Aug ’25US$57.20
US$70.74
+23.7%
12.6%US$90.14US$46.00n/a36
Jul ’25US$59.85
US$72.03
+20.4%
11.5%US$90.14US$54.00n/a37
Jun ’25US$59.32
US$71.84
+21.1%
11.5%US$90.14US$54.00n/a36
May ’25US$63.53
US$76.28
+20.1%
10.7%US$90.14US$55.11n/a37
Apr ’25US$67.82
US$76.03
+12.1%
10.3%US$90.00US$55.11n/a36
Mar ’25US$70.44
US$75.75
+7.5%
10.5%US$90.00US$55.11n/a36
Feb ’25US$66.45
US$62.48
-6.0%
10.8%US$77.00US$49.00n/a36
Jan ’25US$58.53
US$56.75
-3.0%
9.1%US$69.30US$49.00n/a35
Dec ’24US$52.49
US$56.69
+8.0%
9.8%US$69.30US$49.00n/a34
Nov ’24US$57.31
US$71.84
+25.3%
9.8%US$95.00US$60.00n/a35
Oct ’24US$58.68
US$75.01
+27.8%
9.7%US$95.00US$65.00US$76.4934
Sep ’24US$60.87
US$75.25
+23.6%
10.0%US$95.00US$65.00US$76.7132
Aug ’24US$78.03
US$80.81
+3.6%
11.3%US$95.00US$65.00US$57.2031
Jul ’24US$75.59
US$75.50
-0.1%
7.6%US$90.00US$65.00US$59.8530
Jun ’24US$68.64
US$74.87
+9.1%
7.9%US$90.00US$64.00US$59.3230
May ’24US$62.81
US$72.97
+16.2%
8.3%US$85.00US$63.00US$63.5331
Apr ’24US$66.46
US$70.74
+6.4%
9.0%US$85.00US$55.00US$67.8231
Mar ’24US$58.44
US$70.74
+21.1%
9.0%US$85.00US$55.00US$70.4431
Feb ’24US$53.09
US$64.48
+21.4%
11.0%US$85.00US$53.00US$66.4531
Jan ’24US$48.89
US$65.96
+34.9%
10.6%US$85.00US$54.00US$58.5330
Dec ’23US$55.38
US$65.79
+18.8%
10.5%US$85.00US$54.00US$52.4930
Nov ’23US$56.42
US$70.72
+25.3%
8.3%US$85.00US$60.00US$57.3129
Oct ’23US$49.13
US$71.30
+45.1%
8.4%US$85.00US$60.00US$58.6827

Analyst Forecast: Target price is lower than the current share price.

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