FTNT Valuation

Fortinet Inc

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80.540

-5.45(-6.338%)1D

FTNT Relative Valuation

FTNT's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, FTNT is overvalued; if below, it's undervalued.

Historical Valuation

Fortinet Inc (FTNT) is now in the Undervalued zone, suggesting that its current forward PE ratio of 33.18 is considered Undervalued compared with the five-year average of 44.18. The fair price of Fortinet Inc (FTNT) is between 103.20 to 153.83 according to relative valuation methord. Compared to the current price of 85.99 USD , Fortinet Inc is Undervalued By 16.68%.

Relative Value

Fair Zone

103.20-153.83

Current Price：85.99

16.68%

Undervalued

33.18

Trailing

Forward

25.32

EV/EBITDA

Fortinet Inc. (FTNT) has a current EV/EBITDA of 25.32. The 5-year average EV/EBITDA is 31.48. The thresholds are as follows: Strongly Undervalued below 16.95, Undervalued between 16.95 and 24.22, Fairly Valued between 38.75 and 24.22, Overvalued between 38.75 and 46.01, and Strongly Overvalued above 46.01. The current Forward EV/EBITDA of 25.32 falls within the Historic Trend Line -Fairly Valued range.

27.25

EV/EBIT

Fortinet Inc. (FTNT) has a current EV/EBIT of 27.25. The 5-year average EV/EBIT is 34.13. The thresholds are as follows: Strongly Undervalued below 18.50, Undervalued between 18.50 and 26.32, Fairly Valued between 41.94 and 26.32, Overvalued between 41.94 and 49.76, and Strongly Overvalued above 49.76. The current Forward EV/EBIT of 27.25 falls within the Historic Trend Line -Fairly Valued range.

85.99

Fortinet Inc. (FTNT) has a current PS of 85.99. The 5-year average PS is 10.21. The thresholds are as follows: Strongly Undervalued below -1.89, Undervalued between -1.89 and 4.16, Fairly Valued between 16.26 and 4.16, Overvalued between 16.26 and 22.31, and Strongly Overvalued above 22.31. The current Forward PS of 85.99 falls within the Strongly Overvalued range.

25.69

P/OCF

Fortinet Inc. (FTNT) has a current P/OCF of 25.69. The 5-year average P/OCF is 25.81. The thresholds are as follows: Strongly Undervalued below 15.29, Undervalued between 15.29 and 20.55, Fairly Valued between 31.07 and 20.55, Overvalued between 31.07 and 36.33, and Strongly Overvalued above 36.33. The current Forward P/OCF of 25.69 falls within the Historic Trend Line -Fairly Valued range.

29.15

P/FCF

Fortinet Inc. (FTNT) has a current P/FCF of 29.15. The 5-year average P/FCF is 30.25. The thresholds are as follows: Strongly Undervalued below 17.94, Undervalued between 17.94 and 24.10, Fairly Valued between 36.41 and 24.10, Overvalued between 36.41 and 42.57, and Strongly Overvalued above 42.57. The current Forward P/FCF of 29.15 falls within the Historic Trend Line -Fairly Valued range.

Fortinet Inc (FTNT) has a current Price-to-Book (P/B) ratio of 31.95. Compared to its 3-year average P/B ratio of 437.11 , the current P/B ratio is approximately -92.69% higher. Relative to its 5-year average P/B ratio of 277.04, the current P/B ratio is about -88.47% higher. Fortinet Inc (FTNT) has a Forward Free Cash Flow (FCF) yield of approximately 0.03%. Compared to its 3-year average FCF yield of 3.24%, the current FCF yield is approximately -99.05% lower. Relative to its 5-year average FCF yield of 3.05% , the current FCF yield is about -98.99% lower.

31.95

P/B

Median3y

437.11

Median5y

277.04

0.03

FCF Yield

Median3y

3.24

Median5y

3.05

Competitors Valuation Multiple

The average P/S ratio for FTNT's competitors is 153.96, providing a benchmark for relative valuation. Fortinet Inc Corp (FTNT) exhibits a P/S ratio of 85.99, which is -44.15% above the industry average. Given its robust revenue growth of 14.38%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Cognizant Technology Solutions Corp

Credo Technology Group Holding Ltd

Performance Decomposition

Market capitalization of FTNT decreased by 9.53% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 1.51B to 1.72B.

The secondary factor is the P/E Change, contributed -0.64%to the performance.

Overall, the performance of FTNT in the past 1 year is driven by Revenue Growth. Which is more sustainable.

14.38%

1.51B → 1.72B

Revenue Growth

-23.27%

35.80 → 27.47

Margin Expansion

-0.64%

34.50 → 34.28

P/E Change

-9.53%