Stock Analysis on Net

Fortinet Inc. (NASDAQ:FTNT)

This company has been moved to the archive! The financial data has not been updated since May 8, 2023.

Enterprise Value to EBITDA (EV/EBITDA) 

Microsoft Excel

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Fortinet Inc., EBITDA calculation

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net income attributable to Fortinet, Inc. 857,300 606,800 488,500 326,500 332,200
Add: Net income attributable to noncontrolling interest (700) (100)
Add: Income tax expense 30,800 14,100 53,200 52,700 (81,300)
Earnings before tax (EBT) 887,400 620,800 541,700 379,200 250,900
Add: Interest expense 18,000 14,900
Earnings before interest and tax (EBIT) 905,400 635,700 541,700 379,200 250,900
Add: Depreciation and amortization 104,300 84,400 68,800 61,600 55,700
Earnings before interest, tax, depreciation and amortization (EBITDA) 1,009,700 720,100 610,500 440,800 306,600

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. Fortinet Inc. EBITDA increased from 2020 to 2021 and from 2021 to 2022.

Enterprise Value to EBITDA Ratio, Current

Fortinet Inc., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in thousands)
Enterprise value (EV) 50,665,163
Earnings before interest, tax, depreciation and amortization (EBITDA) 1,009,700
Valuation Ratio
EV/EBITDA 50.18
Benchmarks
EV/EBITDA, Competitors1
Accenture PLC 19.65
Adobe Inc. 27.71
Autodesk Inc. 53.02
Cadence Design Systems Inc. 56.64
CrowdStrike Holdings Inc. 282.93
International Business Machines Corp. 16.42
Intuit Inc. 40.24
Microsoft Corp. 23.25
Oracle Corp. 28.05
Palo Alto Networks Inc. 98.69
Salesforce Inc. 33.57
ServiceNow Inc. 130.08
Synopsys Inc. 52.66
EV/EBITDA, Sector
Software & Services 36.06
EV/EBITDA, Industry
Information Technology 34.79

Based on: 10-K (reporting date: 2022-12-31).

1 Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.


Enterprise Value to EBITDA Ratio, Historical

Fortinet Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in thousands)
Enterprise value (EV)1 44,929,542 50,710,379 26,223,379 16,264,089 13,349,100
Earnings before interest, tax, depreciation and amortization (EBITDA)2 1,009,700 720,100 610,500 440,800 306,600
Valuation Ratio
EV/EBITDA3 44.50 70.42 42.95 36.90 43.54
Benchmarks
EV/EBITDA, Competitors4
Accenture PLC 14.25 23.31 17.46 15.60
Adobe Inc. 22.32 35.44 43.06 41.16 37.27
Autodesk Inc. 53.83 79.27 69.31 335.51
Cadence Design Systems Inc. 42.11 39.61 45.75 31.64
CrowdStrike Holdings Inc.
International Business Machines Corp. 22.17 12.53 12.28 10.23
Intuit Inc. 36.22 51.96 35.70 34.27
Microsoft Corp. 20.17 24.59 21.74 17.21
Oracle Corp. 17.12 13.78 11.54 11.83
Palo Alto Networks Inc. 515.16 349.95 117.16
Salesforce Inc. 38.91 33.92 49.78 56.71
ServiceNow Inc. 104.30 147.45 220.91 187.17
Synopsys Inc. 36.73 53.43 42.24 26.98 21.34
EV/EBITDA, Sector
Software & Services 22.25 25.32 22.51 18.25
EV/EBITDA, Industry
Information Technology 18.58 20.64 19.71 14.59

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 See details »

2 See details »

3 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= 44,929,542 ÷ 1,009,700 = 44.50

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. Fortinet Inc. EV/EBITDA ratio increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level.