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.

Common Stock Valuation Ratios (Price Multiples) 

Microsoft Excel

Current Valuation Ratios

Fortinet Inc., current price multiples

Microsoft Excel
Fortinet Inc. Accenture PLC Adobe Inc. Autodesk Inc. Cadence Design Systems Inc. CrowdStrike Holdings Inc. International Business Machines Corp. Intuit Inc. Microsoft Corp. Oracle Corp. Palo Alto Networks Inc. Salesforce Inc. ServiceNow Inc. Synopsys Inc. Software & Services Information Technology
Selected Financial Data
Current share price (P) $66.08
No. shares of common stock outstanding 785,196,153
Growth rate (g) 50.27%
 
Earnings per share (EPS) $1.09
Next year expected EPS $1.64
Operating profit per share $1.23
Sales per share $5.63
Book value per share (BVPS) $-0.36
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 60.52 30.73 40.51 73.05 80.08 960.86 26.45 61.55 35.05 50.50 49.63 75.28 121.74 67.64 54.99 51.12
Price to next year expected earnings 40.28 26.08 31.04 47.11 62.90 1,122.64 30.00 54.87 27.53 17.15 58.02 72.39 106.44 58.75 44.66 40.37
Price-earnings-growth (PEG) 1.20 1.73 1.33 1.33 2.93 5.06 1.28 0.26 18.84 8.47 4.47 2.38 1.92
Price to operating profit (P/OP) 53.51 23.26 33.06 58.68 66.64 21.15 50.24 28.23 34.43 187.05 62.14 276.55 65.54 43.65 43.16
Price to sales (P/S) 11.75 3.44 11.33 12.04 20.39 28.09 3.21 11.20 12.60 9.98 15.94 8.93 23.49 14.24 12.11 12.22

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

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Fortinet Inc., historical price multiples

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Price to earnings (P/E) 53.83 86.12 57.44 56.14 45.15
Price to operating profit (P/OP) 47.60 80.35 52.77 53.25 64.93
Price to sales (P/S) 10.45 15.64 10.82 8.50 8.33
Price to book value (P/BV) 66.85 32.78 13.87 14.85

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).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Fortinet Inc. P/E ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Fortinet Inc. P/OP ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Fortinet Inc. P/S ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Price to Earnings (P/E)

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

Microsoft Excel
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$)
Net income attributable to Fortinet, Inc. (in thousands) 857,300 606,800 488,500 326,500 332,200
Earnings per share (EPS)2 1.09 0.75 0.60 0.38 0.39
Share price1, 3 58.86 64.99 34.39 21.25 17.58
Valuation Ratio
P/E ratio4 53.83 86.12 57.44 56.14 45.15
Benchmarks
P/E Ratio, Competitors5
Accenture PLC 22.93 36.58 28.32 24.58
Adobe Inc. 33.15 48.90 41.69 57.17 46.11
Autodesk Inc. 82.51 47.53 152.72
Cadence Design Systems Inc. 59.70 53.88 62.89 20.22
CrowdStrike Holdings Inc.
International Business Machines Corp. 71.56 19.40 19.30 13.35
Intuit Inc. 57.31 75.17 49.52 48.17
Microsoft Corp. 28.34 35.14 35.04 26.86
Oracle Corp. 26.85 15.84 16.69 16.89
Palo Alto Networks Inc.
Salesforce Inc. 135.68 48.20 1,204.70 107.70
ServiceNow Inc. 284.28 487.70 978.47 106.89
Synopsys Inc. 51.76 73.37 55.92 39.55 29.60
P/E Ratio, Sector
Software & Services 33.75 36.39 36.61 27.87
P/E Ratio, Industry
Information Technology 27.05 29.26 31.09 22.67

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 2022 Calculation
EPS = Net income attributable to Fortinet, Inc. ÷ No. shares of common stock outstanding
= 857,300,000 ÷ 784,066,289 = 1.09

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

4 2022 Calculation
P/E ratio = Share price ÷ EPS
= 58.86 ÷ 1.09 = 53.83

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Fortinet Inc. P/E ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Price to Operating Profit (P/OP)

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

Microsoft Excel
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$)
Operating income (in thousands) 969,600 650,400 531,800 344,200 231,000
Operating profit per share2 1.24 0.81 0.65 0.40 0.27
Share price1, 3 58.86 64.99 34.39 21.25 17.58
Valuation Ratio
P/OP ratio4 47.60 80.35 52.77 53.25 64.93
Benchmarks
P/OP Ratio, Competitors5
Accenture PLC 16.83 28.35 22.21 18.63
Adobe Inc. 25.85 40.64 51.75 51.63 42.06
Autodesk Inc. 66.40 91.28 95.51
Cadence Design Systems Inc. 47.21 48.13 57.54 40.67
CrowdStrike Holdings Inc.
International Business Machines Corp. 14.35 16.23 15.90 11.94
Intuit Inc. 46.05 62.00 41.56 40.45
Microsoft Corp. 24.72 30.79 29.30 24.54
Oracle Corp. 16.51 14.31 12.17 13.83
Palo Alto Networks Inc.
Salesforce Inc. 357.52 431.39 511.08 223.46
ServiceNow Inc. 260.26 436.46 583.07 1,590.30
Synopsys Inc. 43.85 75.64 59.90 40.48 35.54
P/OP Ratio, Sector
Software & Services 26.79 32.94 30.46 25.14
P/OP Ratio, Industry
Information Technology 22.84 26.04 26.62 19.84

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 2022 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 969,600,000 ÷ 784,066,289 = 1.24

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

4 2022 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 58.86 ÷ 1.24 = 47.60

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Fortinet Inc. P/OP ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Price to Sales (P/S)

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

Microsoft Excel
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$)
Revenue (in thousands) 4,417,400 3,342,200 2,594,400 2,156,200 1,801,200
Sales per share2 5.63 4.16 3.18 2.50 2.11
Share price1, 3 58.86 64.99 34.39 21.25 17.58
Valuation Ratio
P/S ratio4 10.45 15.64 10.82 8.50 8.33
Benchmarks
P/S Ratio, Competitors5
Accenture PLC 2.56 4.28 3.26 2.72
Adobe Inc. 8.95 14.94 17.04 15.11 13.23
Autodesk Inc. 9.35 15.15 10.00 13.21
Cadence Design Systems Inc. 14.23 12.55 13.85 8.56
CrowdStrike Holdings Inc. 30.15 48.70 22.79
International Business Machines Corp. 1.94 1.94 1.47 1.63
Intuit Inc. 9.30 16.09 11.78 11.05
Microsoft Corp. 10.40 12.81 10.85 8.38
Oracle Corp. 4.25 5.38 4.33 4.74
Palo Alto Networks Inc. 9.62 10.72 6.66 7.06
Salesforce Inc. 7.40 9.24 8.88 9.00
ServiceNow Inc. 12.75 19.02 25.66 19.36
Synopsys Inc. 10.03 13.22 10.08 6.27 4.10
P/S Ratio, Sector
Software & Services 7.43 9.44 7.57 6.06
P/S Ratio, Industry
Information Technology 6.47 7.48 6.63 5.03

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 2022 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= 4,417,400,000 ÷ 784,066,289 = 5.63

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

4 2022 Calculation
P/S ratio = Share price ÷ Sales per share
= 58.86 ÷ 5.63 = 10.45

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Fortinet Inc. P/S ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Price to Book Value (P/BV)

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

Microsoft Excel
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$)
Total Fortinet, Inc. stockholders’ equity (deficit) (in thousands) (281,600) 781,700 856,000 1,321,900 1,010,200
Book value per share (BVPS)2 -0.36 0.97 1.05 1.53 1.18
Share price1, 3 58.86 64.99 34.39 21.25 17.58
Valuation Ratio
P/BV ratio4 66.85 32.78 13.87 14.85
Benchmarks
P/BV Ratio, Competitors5
Accenture PLC 7.13 11.06 8.51 8.15
Adobe Inc. 11.22 15.94 16.53 16.03 12.76
Autodesk Inc. 48.29 59.48
Cadence Design Systems Inc. 18.46 13.68 14.90 9.51
CrowdStrike Holdings Inc. 42.67 48.91 14.78
International Business Machines Corp. 5.34 5.90 5.24 6.04
Intuit Inc. 7.20 15.71 17.71 20.00
Microsoft Corp. 12.38 15.16 13.11 10.30
Oracle Corp. 41.57 14.01 8.59
Palo Alto Networks Inc. 251.98 71.88 20.61 12.91
Salesforce Inc. 3.37 4.73 4.48 7.66
ServiceNow Inc. 18.36 30.36 40.91 31.48
Synopsys Inc. 9.24 10.50 7.57 5.16 3.68
P/BV Ratio, Sector
Software & Services 10.77 13.67 11.59 10.11
P/BV Ratio, Industry
Information Technology 10.37 12.38 10.90 8.28

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 2022 Calculation
BVPS = Total Fortinet, Inc. stockholders’ equity (deficit) ÷ No. shares of common stock outstanding
= -281,600,000 ÷ 784,066,289 = -0.36

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

4 2022 Calculation
P/BV ratio = Share price ÷ BVPS
= 58.86 ÷ -0.36 =

5 Click competitor name to see calculations.