Stock Analysis on Net
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.

Price to FCFE (P/FCFE)

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Free Cash Flow to Equity (FCFE)

Fortinet Inc., FCFE calculation

US$ in thousands

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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
Purchases of property and equipment (281,200) (295,900) (125,900) (92,200) (53,000)
Proceeds from long-term borrowings, net of discount and underwriting fees — 989,400 — — —
Payments for debt issuance costs — (2,400) — — —
Free cash flow to equity (FCFE) 1,449,400 2,190,800 957,800 715,800 585,900

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).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Fortinet Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Fortinet Inc. FCFE increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level.

Price to FCFE Ratio, Current

Fortinet Inc., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 785,196,153
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands) 1,449,400
FCFE per share 1.85
Current share price (P) 66.08
Valuation Ratio
P/FCFE 35.80
Benchmarks
P/FCFE, Competitors1
Accenture PLC 23.58
Adobe Inc. 34.50
Autodesk Inc. 51.92
Cadence Design Systems Inc. 70.98
CrowdStrike Holdings Inc. 84.43
International Business Machines Corp. 11.66
Intuit Inc. 39.99
Microsoft Corp. 41.85
Oracle Corp. 61.70
Palo Alto Networks Inc. 60.67
Salesforce Inc. 38.17
ServiceNow Inc. 75.76
Synopsys Inc. 56.23
P/FCFE, Sector
Software & Services 49.35
P/FCFE, Industry
Information Technology 50.68

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

1 Click competitor name to see calculations.

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

Price to FCFE Ratio, Historical

Fortinet Inc., historical P/FCFE calculation, comparison to benchmarks

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Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
No. shares of common stock outstanding1 784,066,289 804,077,230 815,954,595 862,573,610 853,168,355
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)2 1,449,400 2,190,800 957,800 715,800 585,900
FCFE per share3 1.85 2.72 1.17 0.83 0.69
Share price1, 4 58.86 64.99 34.39 21.25 17.58
Valuation Ratio
P/FCFE5 31.84 23.85 29.30 25.61 25.60
Benchmarks
P/FCFE, Competitors6
Accenture PLC 17.91 25.76 19.01 19.50 —
Adobe Inc. 21.32 34.26 41.36 41.90 19.87
Autodesk Inc. 16.66 64.43 24.07 41.92 —
Cadence Design Systems Inc. 33.41 36.31 45.86 36.04 —
CrowdStrike Holdings Inc. 99.63 41.38 880.68 — —
International Business Machines Corp. 11.97 48.45 9.43 4.39 —
Intuit Inc. 13.86 86.74 17.36 34.61 —
Microsoft Corp. 36.73 42.54 42.74 30.77 —
Oracle Corp. — 8.36 6.27 22.31 —
Palo Alto Networks Inc. 29.54 32.91 8.11 46.20 —
Salesforce Inc. 16.56 49.52 50.40 29.09 —
ServiceNow Inc. 44.44 64.54 49.83 68.98 —
Synopsys Inc. 33.41 40.55 45.07 77.64 19.63
P/FCFE, Sector
Software & Services 30.44 33.85 25.89 22.16 —
P/FCFE, Industry
Information Technology 26.69 27.52 23.46 19.14 —

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 Data adjusted for splits and stock dividends.

2 See details »

3 2022 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 1,449,400,000 ÷ 784,066,289 = 1.85

4 Closing price as at the filing date of Fortinet Inc. Annual Report.

5 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= 58.86 ÷ 1.85 = 31.84

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Fortinet Inc. P/FCFE ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.