Fortinet, Inc.

DB:FO8 Stock Report

Market Cap: €68.3b

Fortinet Valuation

Is FO8 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 FO8 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FO8 (€89.05) is trading below our estimate of fair value (€140.24)

Significantly Below Fair Value: FO8 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FO8?

Key metric: As FO8 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for FO8. This is calculated by dividing FO8's market cap by their current earnings.
What is FO8's PE Ratio?
PE Ratio46.5x
EarningsUS$1.53b
Market CapUS$71.10b

Price to Earnings Ratio vs Peers

How does FO8's PE Ratio compare to its peers?

The above table shows the PE ratio for FO8 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average50.7x
SAP SAP
95.7x40.8%€262.8b
IXX init innovation in traffic systems
19.4x27.8%€354.6m
NEM Nemetschek
67.5x18.6%€11.5b
IVU IVU Traffic Technologies
20.3xn/a€231.1m
FO8 Fortinet
46.5x10.4%€71.1b

Price-To-Earnings vs Peers: FO8 is good value based on its Price-To-Earnings Ratio (46.5x) compared to the peer average (50.7x).

Price to Earnings Ratio vs Industry

How does FO8's PE Ratio compare vs other companies in the European Software Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
FO8 46.5xIndustry Avg. 28.1xNo. of Companies19PE020406080100+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: FO8 is expensive based on its Price-To-Earnings Ratio (46.5x) compared to the European Software industry average (28.1x).

Price to Earnings Ratio vs Fair Ratio

What is FO8'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.

FO8 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio46.5x
Fair PE Ratio37.5x

Price-To-Earnings vs Fair Ratio: FO8 is expensive based on its Price-To-Earnings Ratio (46.5x) compared to the estimated Fair Price-To-Earnings Ratio (37.5x).

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 FO8 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€89.05
€90.34
+1.4%
11.3%€105.32€58.83n/a36
Nov ’25€71.99
€72.53
+0.8%
11.6%€96.89€57.21n/a36
Oct ’25€69.80
€66.37
-4.9%
9.2%€81.12€55.79n/a36
Sep ’25€69.11
€65.27
-5.5%
9.7%€80.82€52.90n/a36
Aug ’25€52.84
€65.44
+23.8%
12.6%€83.38€42.55n/a36
Jul ’25€55.99
€67.36
+20.3%
11.5%€84.30€50.50n/a37
Jun ’25€54.46
€66.79
+22.6%
11.5%€83.80€50.20n/a36
May ’25€60.33
€71.66
+18.8%
10.7%€84.69€51.78n/a37
Apr ’25€62.18
€69.45
+11.7%
10.3%€82.21€50.34n/a36
Mar ’25€64.80
€70.31
+8.5%
10.5%€83.53€51.15n/a36
Feb ’25€61.15
€57.83
-5.4%
10.8%€71.26€45.35n/a36
Jan ’25€53.51
€52.06
-2.7%
9.1%€63.57€44.95n/a35
Dec ’24€48.19
€52.09
+8.1%
9.8%€63.67€45.02n/a34
Nov ’24€54.02
€67.66
+25.3%
9.8%€89.48€56.51€71.9935
Oct ’24€56.11
€71.02
+26.6%
9.7%€89.95€61.54€69.8034
Sep ’24€55.78
€68.91
+23.5%
10.0%€86.99€59.52€69.1132
Aug ’24€70.71
€73.57
+4.1%
11.3%€86.50€59.18€52.8431
Jul ’24€69.52
€69.01
-0.7%
7.6%€82.27€59.42€55.9930
Jun ’24€63.37
€69.06
+9.0%
7.9%€83.03€59.04€54.4630
May ’24€56.23
€66.51
+18.3%
8.3%€77.48€57.42€60.3331
Apr ’24€60.56
€67.06
+10.7%
9.0%€80.57€52.13€62.1831
Mar ’24€55.73
€67.06
+20.3%
9.0%€80.57€52.13€64.8031
Feb ’24€48.27
€58.69
+21.6%
11.0%€77.38€48.25€61.1531
Jan ’24€45.65
€62.24
+36.3%
10.6%€80.21€50.95€53.5130
Dec ’23€50.48
€63.27
+25.3%
10.5%€81.74€51.93€48.1930
Nov ’23€57.75
€72.39
+25.3%
8.3%€87.01€61.42€54.0229

Analyst Forecast: Target price is less than 20% higher than the current share price.

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