Fortinet (FTNT) Valuation in Focus After Expanded Armis Partnership Highlights Growth in Cybersecurity Solutions

Fortinet (FTNT) is making headlines with the announcement of an expanded partnership with Armis. The partnership is designed to help organizations manage cyber risks through unified, automated defense and real-time asset visibility.

This collaboration integrates Armis Centrix and Fortinet’s Security Fabric, signaling continued investor interest in Fortinet’s approach to scalable, intelligent security solutions in an evolving digital landscape.

See our latest analysis for Fortinet.

While the expanded Armis partnership highlights Fortinet’s proactive stance in cybersecurity innovation, the stock itself has been on a rollercoaster. After rebounding with a 2.66% 1-month share price return, it remains down over 12% year-to-date. For long-term investors, Fortinet’s total shareholder return stands at a modest 0.21% for the past year but a striking 215.65% over five years, showing that while recent momentum has been mixed, the company’s long-run performance stays impressive.

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All these developments raise the question: is Fortinet’s recent upswing just the start of a value opportunity for investors, or is the market already fully factoring in its growth potential?

Most Popular Narrative: 16.1% Undervalued

With Fortinet’s last close at $83.04 and a narrative fair value standing at $99.03, the story is centered on profitability-driven upside potential. According to BlackJesus, the discussion now shifts to whether Fortinet’s financial performance justifies more investor optimism.

It generates robust free cash flow and boasts a highly integrated, cost-effective product platform that resonates strongly across a massive customer base. Its valuation, while not in bargain territory, is significantly more reasonable than its peer, providing a greater margin of safety. The primary risks are tied to its hardware-centric business model and a documented history of product security vulnerabilities that could tarnish its reputation.

Read the complete narrative.

Want the full breakdown? The standout factor behind this valuation is Fortinet’s remarkably high, founder-driven profitability and engineering efficiency. The narrative’s assumptions place heavy weight on consistent margins and a uniquely disciplined growth model, revealing some bold performance expectations just beyond the surface.

Result: Fair Value of $99.03 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent concerns around product vulnerabilities or a slowdown in hardware demand could quickly challenge the case for continued gains.

Find out about the key risks to this Fortinet narrative.

Build Your Own Fortinet Narrative

If you see things differently or would rather dig into the numbers yourself, you can craft your own narrative in just a few minutes with Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Fortinet.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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