Common Stock Valuation Ratios (Price Multiples)
Quarterly Data
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
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Historical Valuation Ratios (Summary)
Fortinet Inc., historical price multiples (quarterly data)
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
The financial ratios of the company exhibit notable fluctuations and trends from early 2018 through the first quarter of 2023. The analysis below outlines the key observations regarding valuation multiples over this period.
- Price to Earnings (P/E) Ratio
- The P/E ratio shows an overall upward trend beginning in early 2019. Starting from approximately 45.15 in March 2019, the ratio increased steadily, peaking at around 103.55 in December 2021. After this peak, the P/E ratio declined moderately to stabilize in the range of approximately 50 to 54 by early 2023. This indicates increasing investor expectations or earnings volatility during this time, followed by some correction in valuation.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio follows a somewhat similar pattern to the P/E ratio, though generally lower in magnitude. From March 2019, it decreased from about 64.93 to a low near 39.57 in December 2020, then sharply increased to peak at approximately 94.93 by December 2021. Subsequently, there is a noticeable decline to about 45.23 by December 2022, with a slight uptick thereafter. This suggests significant fluctuations in operating profitability relative to the company’s share price during these periods.
- Price to Sales (P/S) Ratio
- The P/S ratio exhibits consistent growth over the observed period. Beginning around 8.33 in March 2019, it rose steadily to reach a peak near 18.37 in December 2021. Following this high point, the ratio decreased to around 9.12 by September 2022, with a modest increase thereafter. This trend suggests that the market's valuation of the company's sales improved substantially until late 2021, before retreating somewhat in subsequent quarters.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio shows dramatic increases and volatility. Initially ranging between approximately 13.8 to 15.84 from early to late 2018, the ratio surged to about 40.72 in March 2020. It continued to rise substantially, peaking at very high levels near 196.4 by mid-2022. Extremely high values are observed in the last reported quarters, reaching above 4,500 by March 2023, though data for some intermediate quarters is missing. This extreme spike likely indicates a significant divergence between market price and book value, reflecting either a substantial increase in market capitalization relative to net assets or notable changes in balance sheet composition.
In summary, valuation multiples increased significantly through 2021, reflecting heightened investor optimism or market conditions. Subsequently, most ratios decreased but remained elevated compared to early period levels. The P/BV ratio's extreme rise later suggests particular financial or market factors that warrant detailed investigation. Overall, the data reflects considerable investor enthusiasm during 2020-2021, followed by a period of revaluation and moderation in early 2022 and 2023.
Price to Earnings (P/E)
Fortinet Inc., historical P/E calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||
| Net income attributable to Fortinet, Inc. (in thousands) | ||||||||||||||||||||||||||||
| Earnings per share (EPS)2 | ||||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||||
| P/E ratio4 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| P/E Ratio, Competitors5 | ||||||||||||||||||||||||||||
| Accenture PLC | ||||||||||||||||||||||||||||
| Adobe Inc. | ||||||||||||||||||||||||||||
| Cadence Design Systems Inc. | ||||||||||||||||||||||||||||
| CrowdStrike Holdings Inc. | ||||||||||||||||||||||||||||
| Fair Isaac Corp. | ||||||||||||||||||||||||||||
| International Business Machines Corp. | ||||||||||||||||||||||||||||
| Intuit Inc. | ||||||||||||||||||||||||||||
| Microsoft Corp. | ||||||||||||||||||||||||||||
| Oracle Corp. | ||||||||||||||||||||||||||||
| Palantir Technologies Inc. | ||||||||||||||||||||||||||||
| Palo Alto Networks Inc. | ||||||||||||||||||||||||||||
| Salesforce Inc. | ||||||||||||||||||||||||||||
| ServiceNow Inc. | ||||||||||||||||||||||||||||
| Synopsys Inc. | ||||||||||||||||||||||||||||
| Workday Inc. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2023 Calculation
EPS
= (Net income attributable to Fortinet, Inc.Q1 2023
+ Net income attributable to Fortinet, Inc.Q4 2022
+ Net income attributable to Fortinet, Inc.Q3 2022
+ Net income attributable to Fortinet, Inc.Q2 2022)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Fortinet Inc. Quarterly or Annual Report.
4 Q1 2023 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The analyzed quarterly financial data reveals several notable trends concerning share price, earnings per share (EPS), and the price-to-earnings (P/E) ratio over the examined periods.
- Share Price Trends
- The share price demonstrated a general upward trajectory from March 2018 through March 2021, escalating from $11.39 to a peak of $70.24 in September 2021. This growth phase was punctuated by minor fluctuations but reflected a strong bullish momentum. After reaching this peak, the share price experienced a decline, decreasing to $47.86 by September 2022. However, it rebounded thereafter, reaching $66.08 by March 2023, indicating renewed investor confidence or positive market sentiment.
- Earnings Per Share (EPS) Evolution
- EPS data commences from December 2018 and shows a consistent upward trend over the periods, rising from $0.39 to $1.23 by March 2023. This steady increase suggests improving profitability and operational performance. Notably, the growth in EPS is relatively smooth without significant downward reversals, which can be indicative of sustained earnings improvements and potentially effective cost management or revenue growth strategies.
- Price-to-Earnings (P/E) Ratio Movement
- The P/E ratio exhibited a more volatile pattern compared to share price and EPS. Initially, from December 2018 through late 2019, the P/E ratio decreased from approximately 45.15 to around 35.41, despite rising EPS and generally increasing share price. This decline can reflect market adjustments as earnings growth outpaced share price appreciation, possibly signaling a more attractive valuation.
- Subsequently, from 2020 onwards, the P/E ratio increased significantly, peaking at over 103 in December 2021. This sharp rise indicates that share prices increased at a much faster pace than earnings during this period, pointing to heightened investor expectations or speculative market behavior. Following the peak, the P/E ratio declined steadily to approximately 53.68 by March 2023, which, coupled with the partial rebound in share price and continued EPS growth, suggests a normalization or stabilization of valuation levels.
- Interrelationship Insights
- The data reflects a scenario where earnings improvements have been consistent and robust, as seen in the steady rise in EPS. The share price, while generally increasing, shows more pronounced volatility, particularly in 2021 and 2022. The substantial fluctuations in the P/E ratio underscore shifts in market sentiment that led to periods of overvaluation (high P/E) followed by corrections (lower P/E). Overall, the patterns suggest that while fundamental financial performance has steadily improved, market pricing has been influenced by external factors leading to sharper valuation changes.
Price to Operating Profit (P/OP)
Fortinet Inc., historical P/OP calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||
| Operating income (in thousands) | ||||||||||||||||||||||||||||
| Operating profit per share2 | ||||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||||
| P/OP ratio4 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| P/OP Ratio, Competitors5 | ||||||||||||||||||||||||||||
| Accenture PLC | ||||||||||||||||||||||||||||
| Adobe Inc. | ||||||||||||||||||||||||||||
| Cadence Design Systems Inc. | ||||||||||||||||||||||||||||
| CrowdStrike Holdings Inc. | ||||||||||||||||||||||||||||
| Fair Isaac Corp. | ||||||||||||||||||||||||||||
| International Business Machines Corp. | ||||||||||||||||||||||||||||
| Intuit Inc. | ||||||||||||||||||||||||||||
| Microsoft Corp. | ||||||||||||||||||||||||||||
| Oracle Corp. | ||||||||||||||||||||||||||||
| Palantir Technologies Inc. | ||||||||||||||||||||||||||||
| Palo Alto Networks Inc. | ||||||||||||||||||||||||||||
| Salesforce Inc. | ||||||||||||||||||||||||||||
| ServiceNow Inc. | ||||||||||||||||||||||||||||
| Synopsys Inc. | ||||||||||||||||||||||||||||
| Workday Inc. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2023 Calculation
Operating profit per share
= (Operating incomeQ1 2023
+ Operating incomeQ4 2022
+ Operating incomeQ3 2022
+ Operating incomeQ2 2022)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Fortinet Inc. Quarterly or Annual Report.
4 Q1 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The share price demonstrates an overall upward trend from March 2018 through March 2023, increasing from $11.39 to $66.08. Notable growth phases occur between late 2019 and late 2021, where the share price rises significantly, peaking around December 2021 at $70.24. However, from that peak, there is some volatility and a moderate decline through much of 2022, with the share price dipping to a low near $47.86 in September 2022 before rebounding again by the first quarter of 2023.
The operating profit per share shows consistent growth starting from March 2019, beginning at $0.27 and increasing steadily each quarter to reach $1.39 by March 2023. This reflects a more than fivefold increase in operating profit per share over four years, indicating improving operational efficiency or profitability on a per-share basis.
The P/OP (Price to Operating Profit) ratio exhibits considerable fluctuation over the observed periods. Starting without available data before March 2019, the ratio initially trends downward from 64.93 to a low near 39.57 by December 2020, suggesting an increasing operating profit relative to the share price. Following this period, the ratio rises sharply to peak around 94.93 by December 2021, implying a rapid increase in share price outpacing operating profit growth. Subsequent quarters show a decreasing trend in the P/OP ratio, moving back down to approximately 47.51 by March 2023, signifying a relative correction where operating profit growth is catching up or the share price is stabilizing.
In summary, the data reveals strengthening underlying profitability common to a rising share price over the longer term. However, valuation multiples such as P/OP have experienced substantial volatility, reflective of investor sentiment changes or market expectations about future performance throughout the timeline.
- Share Price
- Increased markedly from $11.39 to $66.08 with notable growth until late 2021 and some volatility thereafter.
- Operating Profit per Share
- Steadily rose from $0.27 in early 2019 to $1.39 in early 2023, indicating rising profitability.
- P/OP Ratio
- Fluctuated significantly, initially declining, then peaking near 95 in late 2021, followed by a decrease to around 47 by early 2023, reflecting variable market valuation versus operating profit.
Price to Sales (P/S)
Fortinet Inc., historical P/S calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||
| Revenue (in thousands) | ||||||||||||||||||||||||||||
| Sales per share2 | ||||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||||
| P/S ratio4 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| P/S Ratio, Competitors5 | ||||||||||||||||||||||||||||
| Accenture PLC | ||||||||||||||||||||||||||||
| Adobe Inc. | ||||||||||||||||||||||||||||
| Cadence Design Systems Inc. | ||||||||||||||||||||||||||||
| CrowdStrike Holdings Inc. | ||||||||||||||||||||||||||||
| Fair Isaac Corp. | ||||||||||||||||||||||||||||
| International Business Machines Corp. | ||||||||||||||||||||||||||||
| Intuit Inc. | ||||||||||||||||||||||||||||
| Microsoft Corp. | ||||||||||||||||||||||||||||
| Oracle Corp. | ||||||||||||||||||||||||||||
| Palantir Technologies Inc. | ||||||||||||||||||||||||||||
| Palo Alto Networks Inc. | ||||||||||||||||||||||||||||
| Salesforce Inc. | ||||||||||||||||||||||||||||
| ServiceNow Inc. | ||||||||||||||||||||||||||||
| Synopsys Inc. | ||||||||||||||||||||||||||||
| Workday Inc. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2023 Calculation
Sales per share
= (RevenueQ1 2023
+ RevenueQ4 2022
+ RevenueQ3 2022
+ RevenueQ2 2022)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Fortinet Inc. Quarterly or Annual Report.
4 Q1 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
The financial data reveals distinct trends across the periods analyzed, highlighting changes in share price, sales per share, and price-to-sales (P/S) ratio.
- Share Price
- Over the observed quarters, the share price demonstrates a general upward trajectory with notable fluctuations. Beginning at $11.39 in the first quarter of 2018, it increased steadily to peak at $70.24 in the third quarter of 2021. Following this peak, the price experienced some volatility, decreasing to $47.86 by the third quarter of 2022, before partially recovering to $66.08 by the first quarter of 2023. This pattern indicates strong growth momentum with periods of correction or market adjustment.
- Sales per Share
- Sales per share are reported starting from the first quarter of 2019. From an initial value of $2.11, sales per share show consistent and steady growth throughout the periods evaluated. The value increased each quarter, reaching $6.02 by the first quarter of 2023. This consistent increase suggests expanding revenue generation on a per-share basis and reflects positive operational performance.
- Price-to-Sales (P/S) Ratio
- The P/S ratio exhibits significant variability across the quarters, indicating changes in market valuation relative to sales performance. Initially, it declined from 8.33 in the first quarter of 2019 to a low of 6.81 by the fourth quarter of 2019, signaling a possible moderation in market expectations relative to sales. Subsequently, the ratio sharply increased, peaking at 18.37 in the third quarter of 2021, coinciding with the peak in share price, which may reflect elevated market optimism or premium valuation. After this peak, the P/S ratio declined notably to 9.12 by the third quarter of 2022, suggesting a market correction or reassessment of valuation in relation to sales, followed by a slight recovery to 10.98 in the first quarter of 2023.
Price to Book Value (P/BV)
Fortinet Inc., historical P/BV calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||
| Total Fortinet, Inc. stockholders’ equity (deficit) (in thousands) | ||||||||||||||||||||||||||||
| Book value per share (BVPS)2 | ||||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||||
| P/BV ratio4 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| P/BV Ratio, Competitors5 | ||||||||||||||||||||||||||||
| Accenture PLC | ||||||||||||||||||||||||||||
| Adobe Inc. | ||||||||||||||||||||||||||||
| Cadence Design Systems Inc. | ||||||||||||||||||||||||||||
| CrowdStrike Holdings Inc. | ||||||||||||||||||||||||||||
| Fair Isaac Corp. | ||||||||||||||||||||||||||||
| International Business Machines Corp. | ||||||||||||||||||||||||||||
| Intuit Inc. | ||||||||||||||||||||||||||||
| Microsoft Corp. | ||||||||||||||||||||||||||||
| Oracle Corp. | ||||||||||||||||||||||||||||
| Palantir Technologies Inc. | ||||||||||||||||||||||||||||
| Palo Alto Networks Inc. | ||||||||||||||||||||||||||||
| Salesforce Inc. | ||||||||||||||||||||||||||||
| ServiceNow Inc. | ||||||||||||||||||||||||||||
| Synopsys Inc. | ||||||||||||||||||||||||||||
| Workday Inc. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2023 Calculation
BVPS = Total Fortinet, Inc. stockholders’ equity (deficit) ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Fortinet Inc. Quarterly or Annual Report.
4 Q1 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The share price demonstrates a general upward trend with fluctuations spanning from March 31, 2018, through March 31, 2023. Starting at $11.39 in early 2018, it gradually increased, reaching a peak of $70.24 in September 2021 before declining to $47.86 by September 2022, then recovering to $66.08 by March 2023. This pattern reflects periods of growth interrupted by temporary dips, indicating volatility alongside an overall positive trajectory in market valuation.
Book value per share (BVPS) shows variability over the reported quarters, moving from $0.83 in early 2018 to a peak of $1.53 by December 2019. Following that, a significant decline occurs, dropping to negative values (-$0.81 in September 2022) before a modest recovery to $0.01 in March 2023. This negative turn suggests challenges in the company's net asset value during late 2021 through 2022, which partially reversed toward the latest quarter.
The price-to-book value ratio (P/BV) reveals pronounced volatility. It fluctuates moderately between approximately 11.62 and 15.84 from 2018 to 2019, then spikes dramatically from 40.72 in March 2020 to an exceptionally high value of 196.4 in June 2022, with some data points missing between December 2022 and March 2023. The largest recorded ratio, 4551.38 at the final quarter, is an outlier likely resulting from the near-zero or negative BVPS values, reflecting extremely high market valuations relative to book value during periods of asset value erosion.
Overall, the data indicates that while the market price for the shares has generally appreciated with periods of volatility, the underlying book value per share has experienced significant stress, especially between late 2021 and 2022. The corresponding extreme increases in the P/BV ratio highlight a divergence between market perceptions and accounting book value, suggesting that investors may be pricing in future growth or intangible assets not reflected on the balance sheet.
- Share Price Trend
- Steady increase from 2018 to late 2021 followed by volatility and partial recovery by early 2023.
- Book Value per Share Trend
- Initial growth up to late 2019, then sharp decline into negative territory around 2022, slight recovery by Q1 2023.
- Price-to-Book Ratio Trend
- Moderate values in 2018-2019, dramatic spikes during 2020-2023, peaking in 2023 due to very low or negative book values.
- Financial Implications
- Market valuation growth amid book value challenges may reflect investor optimism about future prospects or intangible asset valuation.