Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)
Interest Paid, Net of Tax
EV to FCFF Ratio, Current
EV to FCFF Ratio, Historical

Free Cash Flow to The Firm (FCFF)

Fortinet Inc., FCFF calculation

US$ in thousands

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)
Net loss attributable to non-controlling interests, net of tax	(700)	(100)	—)	—)	—)
Net noncash charges	641,000)	490,600)	405,200)	343,300)	308,000)
Changes in operating assets and liabilities, net of impact of business combinations	233,000)	402,400)	190,000)	138,200)	(1,300)
Net cash provided by operating activities	1,730,600)	1,499,700)	1,083,700)	808,000)	638,900)
Cash paid for interest, net of tax¹	15,485)	8,212)	—)	—)	—)
Purchases of property and equipment	(281,200)	(295,900)	(125,900)	(92,200)	(53,000)
Free cash flow to the firm (FCFF)	1,464,885)	1,212,012)	957,800)	715,800)	585,900)

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 »

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Fortinet Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Fortinet Inc. FCFF increased from 2020 to 2021 and from 2021 to 2022.

Interest Paid, Net of Tax

Fortinet Inc., interest paid, net of tax calculation

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Effective Income Tax Rate (EITR)
EITR¹	3.22%	2.24%	9.82%	13.90%	21.00%
Interest Paid, Net of Tax
Cash paid for interest, before tax	16,000)	8,400)	—)	—)	—)
Less: Cash paid for interest, tax²	515)	188)	—)	—)	—)
Cash paid for interest, net of tax	15,485)	8,212)	—)	—)	—)

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 2022 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 16,000 × 3.22% = 515

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Enterprise Value to FCFF Ratio, Current

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

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	50,665,163)
Free cash flow to the firm (FCFF)	1,464,885)
Valuation Ratio
EV/FCFF	34.59
Benchmarks
EV/FCFF, Competitors¹
Accenture PLC	26.17
Adobe Inc.	27.42
Autodesk Inc.	49.07
Cadence Design Systems Inc.	64.47
CrowdStrike Holdings Inc.	91.51
International Business Machines Corp.	17.98
Intuit Inc.	37.94
Microsoft Corp.	50.91
Oracle Corp.	36.60
Palantir Technologies Inc.	258.09
Palo Alto Networks Inc.	38.95
Salesforce Inc.	33.48
ServiceNow Inc.	81.34
Synopsys Inc.	56.08
EV/FCFF, Sector
Software & Services	50.38
EV/FCFF, Industry
Information Technology	53.22

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

¹ Click competitor name to see calculations.

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

Enterprise Value to FCFF Ratio, Historical

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

	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)
Free cash flow to the firm (FCFF)²	1,464,885)	1,212,012)	957,800)	715,800)	585,900)
Valuation Ratio
EV/FCFF³	30.67	41.84	27.38	22.72	22.78
Benchmarks
EV/FCFF, Competitors⁴
Accenture PLC	16.99	24.76	17.90	18.49	—
Adobe Inc.	20.82	33.61	40.43	40.48	31.36
Autodesk Inc.	27.63	41.13	23.38	98.38	—
Cadence Design Systems Inc.	44.54	35.05	44.13	29.35	—
CrowdStrike Holdings Inc.	96.35	141.44	807.14	—	—
International Business Machines Corp.	16.47	13.10	9.35	12.86	—
Intuit Inc.	32.85	48.64	37.90	33.30	—
Microsoft Corp.	32.31	38.37	33.99	26.37	—
Oracle Corp.	31.60	16.36	14.99	14.03	—
Palantir Technologies Inc.	82.97	66.45	—	—	—
Palo Alto Networks Inc.	29.30	32.74	26.50	20.44	—
Salesforce Inc.	35.97	44.91	39.63	41.21	—
ServiceNow Inc.	40.86	60.13	83.74	67.96	—
Synopsys Inc.	30.82	38.59	42.88	33.32	—
EV/FCFF, Sector
Software & Services	29.64	32.41	27.80	23.61	—
EV/FCFF, Industry
Information Technology	27.35	28.28	24.52	19.89	—

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/FCFF = EV ÷ FCFF
= 44,929,542 ÷ 1,464,885 = 30.67

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Fortinet Inc. EV/FCFF ratio increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level.

Fortinet Inc. (NASDAQ:FTNT)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical