Fortinet, Inc. (FTNT) Fair Value & PE Analysis
Software - Infrastructure · NASDAQ
Current Price
$153.22
PE Ratio (TTM)
53.6x
Intrinsic Value
$162.82
+5.9% margin of safety
What Is Fortinet, Inc.'s Fair Value?
As of 2026-07-29, applying a 50.0x earnings multiple to Fortinet, Inc.'s (FTNT) earnings per share of $2.88 yields a fair value estimate of $162.82 per share, versus a market price of $153.22.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $141.01 to $187.25. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How the PE model works · Recalculate in PE mode · FTNT intrinsic value (DCF view)
Is Fortinet, Inc. (FTNT) Overvalued?
At $153.22, FTNT trades about 5.9% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough to call it cheap outright.
COMPETITIVE MOAT
↑Integrated Security Fabric
Fortinet's Security Fabric offers a broad, integrated, and automated approach to cybersecurity. This platform aims to simplify security operations and reduce complexity for customers.
↑Broad Product Portfolio
The company provides a comprehensive suite of security solutions, from network security to endpoint protection. This breadth allows for cross-selling and deeper customer relationships.
↑AI-Driven Security Innovations
Fortinet is leveraging AI and machine learning to enhance its threat detection and response capabilities. This focus on advanced technology addresses evolving cyber threats.
INVESTMENT RISKS
↓Dependence on Hardware Sales
While expanding its software offerings, Fortinet still has significant revenue tied to hardware appliances. Disruptions in hardware supply chains or shifts to purely cloud-based solutions could impact sales.
↓Quantum Computing Encryption Threat
The potential for quantum computers to break current encryption methods poses a long-term risk. Fortinet needs to proactively develop and implement quantum-resistant security solutions.
↓Customer Concentration
While not explicitly stated, a reliance on a few large enterprise or government clients could create concentration risk. Losing a major customer could significantly impact revenue.
Base case
FTNT base case PE valuation
Intrinsic Value
$162.82
Margin of safety
+5.9%
Expected annual return
+1.2%
Base case assumptions: 10.6% annual earnings growth, 50x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-29.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the FTNT PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Fortinet, Inc. respond.
Open PE Calculator for FTNTCompany Overview
Fortinet, Inc. specializes in delivering extensive, unified, and automated cybersecurity solutions to a global clientele, encompassing the Americas, Europe, the Middle East, Africa, and the Asia Pacific regions. At its core, the company offers FortiGate, a powerful platform combining hardware and software licenses that provides a comprehensive suite of security and networking functionalities. This includes firewall capabilities, intrusion prevention, anti-malware defense, virtual private network (VPN) services, application control, web filtering, anti-spam measures, and wide area network (WAN) acceleration. Beyond its flagship product, Fortinet provides a diverse portfolio of specialized security tools. These range from FortiSwitch for secure network switching and FortiAP for robust wireless connectivity, to FortiExtender, a versatile hardware appliance. For centralized network visibility and control, clients utilize FortiAnalyzer for logging, analysis, and reporting, and FortiManager for scalable administration of FortiGate devices. The company further fortifies digital defenses with FortiWeb (web application firewalls), FortiMail (secure email gateways), and FortiSandbox technology, which offers proactive threat detection and mitigation. Endpoint protection is a key focus, delivered through FortiClient (featuring pattern-based anti-malware, behavior-based exploit protection, web-filtering, and an application firewall) and the advanced FortiEDR/XDR suite, which leverages machine learning for anti-malware execution and real-time post-infection defense. Additionally, FortiToken and FortiAuthenticator product families provide essential multi-factor authentication to safeguard systems and data. Fortinet's service offerings include security subscriptions, technical support, professional consulting, and training programs. Its robust security technologies are distributed both directly to end-users and through an extensive network of channel partners. The company serves a wide array of sectors, including telecommunications, technology, government, financial services, education, retail, manufacturing, and healthcare. Headquartered in Sunnyvale, California, Fortinet, Inc. was established in 2000 and maintains a strategic alliance with Linksys.
Financial Metrics — FTNT PE Stock Valuation Data
PE Ratio (TTM)
53.6x
PEG Ratio
4.11
Earnings Yield
1.88%
ROE (TTM)
187.9%
Revenue/Share (TTM)
$10.23
Debt/Equity
0.32x
Frequently Asked Questions
What is the PE ratio of FTNT?
The trailing twelve-month PE ratio of FTNT reflects how much investors pay per dollar of Fortinet, Inc.'s earnings. This metric is most useful when compared to Software - Infrastructure peers and the company's own historical range.
Is FTNT overvalued based on PE ratio?
FTNT's PE of 53.6x combined with a PEG ratio of 4.11 provides a growth-adjusted perspective. A PEG above 2.0 means the P/E is high relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Software - Infrastructure, a DCF analysis may be more appropriate.
How do I value FTNT stock using PE ratio?
To value Fortinet, Inc. using PE: (1) Compare the current PE (53.6x) against the Software - Infrastructure median to assess relative pricing, (2) check the PEG ratio (4.11) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of FTNT?
FTNT's PEG ratio is 4.11, calculated by dividing the PE ratio (53.6x) by the expected earnings growth rate. A PEG above 2.0 means the P/E is high relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for FTNT stock valuation?
PE ratio gives a quick relative read — how FTNT is priced versus Software - Infrastructure peers. DCF provides an absolute value based on projected free cash flows. For FTNT, with a strong ROE of 187.9%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See FTNT DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Technology valuationsP/E and DCF value FTNT with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.