Fortinet, Inc. (FTNT) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-41.2%

$76.63

vs $130.32 price

Levered DCF

$64.93

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

7.62

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	32.55×	41.44×	39.82×	45.27×	97.14×	49.52×	54.74×	36.13×
P/B	47.68×	48.35×	-98.34×	-137.4×	75.03×	28.5×	13.6×	11.79×
P/S	8.68×	12.13×	8.59×	8.76×	17.55×	9.4×	8.44×	6.6×
EV / EBITDA	23.33×	31.95×	30.76×	35.26×	80.15×	38.21×	38.05×	37.23×
Gross margin	80.8%	80.6%	76.7%	75.4%	76.6%	78.0%	76.6%	75.0%
Operating margin	30.6%	30.3%	23.4%	21.9%	19.5%	20.5%	16.2%	13.0%
Net margin	27.3%	29.3%	21.6%	19.4%	18.2%	18.8%	15.3%	18.6%
Current ratio	1.17×	1.47×	1.19×	1.24×	1.55×	1.5×	1.9×	1.77×
Debt / equity	0.81×	0.67×	-2.14×	-3.52×	1.26×	0×	0×	0×
Interest coverage	103.58×	90.17×	59.1×	53.87×	43.65×	0×	0×	0×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	149.8%	116.8%	-247.7%	-304.4%	77.6%	57.1%	24.7%	33.2%
Return on invested capital	28.7%	27.2%	31.2%	29.7%	17.7%	21.7%	12.4%	12.9%
Return on assets	17.8%	17.9%	15.8%	13.8%	10.3%	12.1%	8.6%	10.9%
Free cash flow yield	3.8%	2.6%	3.8%	3.7%	2.1%	3.9%	3.9%	4.9%
Earnings yield	3.1%	2.4%	2.5%	2.2%	1.0%	2.0%	1.8%	2.8%
Enterprise value	$57.5B	$70.3B	$45.2B	$38B	$58.3B	$23.3B	$17B	$10.8B
Net debt / EBITDA	-0.61×	-0.85×	-0.28×	-0.64×	-0.45×	-1.74×	-2.73×	-3.83×
Cash conversion cycle (days)	138	129	179	111	101	100	107	93