Fortinet, Inc.

NasdaqGS:FTNT Stock Report

Market Cap: US$69.6b

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 ($92.45) is trading below our estimate of fair value ($135.66)

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?

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

The above table shows the Price to Earnings ratio for FTNT. This is calculated by dividing FTNT's market cap by their current earnings.
What is FTNT's PE Ratio?
PE Ratio46.3x
EarningsUS$1.53b
Market CapUS$69.59b

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 Average65x
PANW Palo Alto Networks
49.9x-2.4%US$127.0b
NOW ServiceNow
158x21.7%US$210.9b
GEN Gen Digital
29.1x14.3%US$18.0b
CHKP Check Point Software Technologies
23.2x5.2%US$19.2b
FTNT Fortinet
46.3x10.4%US$69.6b

Price-To-Earnings vs Peers: FTNT is good value based on its Price-To-Earnings Ratio (46.3x) compared to the peer average (65x).

Price to Earnings Ratio vs Industry

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

10 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AISP Airship AI Holdings
4.5x-27.8%US$74.21m
GRRR Gorilla Technology Group
2x-67.4%US$45.52m
NISN Nisun International Enterprise Development Group
2.1xn/aUS$35.53m
NXTT Next Technology Holding
0.5xn/aUS$19.19m
FTNT 46.3xIndustry Avg. 41.0xNo. of Companies12PE020406080100+
10 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: FTNT is expensive based on its Price-To-Earnings Ratio (46.3x) compared to the US Software industry average (41x).

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 Ratio46.3x
Fair PE Ratio42.9x

Price-To-Earnings vs Fair Ratio: FTNT is expensive based on its Price-To-Earnings Ratio (46.3x) compared to the estimated Fair Price-To-Earnings Ratio (42.9x).

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$92.45
US$95.21
+3.0%
11.3%US$111.00US$62.00n/a36
Nov ’25US$78.80
US$78.60
-0.3%
11.6%US$105.00US$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$60.00US$78.8035
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

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

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