Fortinet Stock Alpha and Beta Analysis

FTNT
 Stock
  

USD 52.94  0.67  1.28%   

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Fortinet. It also helps investors analyze the systematic and unsystematic risks associated with investing in Fortinet over a specified time horizon. Remember, high Fortinet's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation.
Please check Fortinet Backtesting, Fortinet Valuation, Fortinet Correlation, Fortinet Hype Analysis, Fortinet Volatility, Fortinet History and analyze Fortinet Performance.
  
Please note that although Fortinet alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., DOW index.) So in this particular case, Fortinet did 0.17  worse than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of Fortinet stock's relative risk over its benchmark. Fortinet has a beta of 1.73  . Let's try to break down what Fortinet's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Fortinet will likely underperform.
Fortinet Book Value per Share is comparatively stable at the moment as compared to the past year. Fortinet reported Book Value per Share of 0.96 in 2021. Enterprise Value over EBIT is likely to gain to 92.58 in 2022, whereas Enterprise Value over EBITDA is likely to drop 70.19 in 2022.
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.

Fortinet Quarterly Book Value per Share

(0.494)

Fortinet Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Fortinet market risk premium is the additional return an investor will receive from holding Fortinet long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Fortinet. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Fortinet's performance over market.
α-0.17   β1.73
90 days against DJI

Fortinet expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Fortinet's Buy-and-hold return. Our buy-and-hold chart shows how Fortinet performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

Fortinet Market Price Analysis

Market price analysis indicators help investors to evaluate how Fortinet stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Fortinet shares will generate the highest return on investment. By understating and applying Fortinet stock market price indicators, traders can identify Fortinet position entry and exit signals to maximize returns.

Fortinet Return and Market Media

The median price of Fortinet for the period between Sat, May 21, 2022 and Fri, Aug 19, 2022 is 57.66 with a coefficient of variation of 5.21. The daily time series for the period is distributed with a sample standard deviation of 2.99, arithmetic mean of 57.44, and mean deviation of 2.49. The Stock received substential amount of media coverage during this period.
 Price Growth (%)  
       Timeline  
1
Sale by Keith Jensen of 800 shares of Fortinet05/25/2022
2
Exercise or conversion by Keith Jensen of 2397 shares of For...05/26/2022
3
Dow Jones Futures Market Rally Suffers Big Losses As Key Inf...06/09/2022
4
Exercise or conversion by Ducourty Kelly of 244 shares of Fo...06/17/2022
5
Filing06/21/2022
6
Financial Statements06/22/2022
7
EPS Estimate06/30/2022
8
Fortinet Outpaces Stock Market Gains What You Should Know - ...07/06/2022
9
Heres Why We Think Fortinet Might Deserve Your Attention Tod...07/20/2022
10
Fortinet exotic insider transaction detected07/26/2022
11
7 Cybersecurity Stocks to Buy on the Dip - InvestorPlace07/27/2022
12
Exercise or conversion by Ken Xie of 11335 shares of Fortine...08/01/2022
13
EPS Reported08/03/2022
14
Fortinet Stock Slumps on Cut to Service Revenue Guidance - B...08/04/2022
15
FTNT Stock Split Fortinet Inc Announces 5 for 1 Stock Split ...08/11/2022

About Fortinet Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Fortinet or other stocks. Alpha measures the amount that position in Fortinet has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
 2010 2021 2022 (projected)
Long Term Debt to Equity1.261.141.13
Interest Coverage62.155.8955.56

Fortinet Upcoming Company Events

As portrayed in its financial statements, the presentation of Fortinet's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Fortinet's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of Fortinet's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of Fortinet. Please utilize our Beneish M Score to check the likelihood of Fortinet's management manipulating its earnings.
Upcoming Quarterly Report3rd of February 2022
Next Financial Report5th of May 2022
Next Fiscal Quarter End31st of December 2021
Next Fiscal Year End3rd of February 2022
Last Quarter Report30th of September 2021
Last Financial Announcement31st of December 2020

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Please check Fortinet Backtesting, Fortinet Valuation, Fortinet Correlation, Fortinet Hype Analysis, Fortinet Volatility, Fortinet History and analyze Fortinet Performance. Note that the Fortinet information on this page should be used as a complementary analysis to other Fortinet's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

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When running Fortinet price analysis, check to measure Fortinet's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Fortinet is operating at the current time. Most of Fortinet's value examination focuses on studying past and present price action to predict the probability of Fortinet's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Fortinet's price. Additionally, you may evaluate how the addition of Fortinet to your portfolios can decrease your overall portfolio volatility.
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Fortinet technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Fortinet technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Fortinet trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...