Fortinet Stock Valuation

FTNT
 Stock
  

USD 51.93  1.01  1.91%   

What would the acquisition value of Fortinet be today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Fortinet, is its stock price multiplied by the total number of shares outstanding, calculating Fortinet's enterprise value requires a different approach. It uses Fortinet's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Free Cash Flow is likely to gain to about 1.3 B in 2022. Enterprise Value is likely to gain to about 62.5 B in 2022.
Fortinet shows a prevailing Real Value of $123.38 per share. The current price of the firm is $51.93. At this time, the firm appears to be undervalued. Our model computes the value of Fortinet from reviewing the firm fundamentals such as Current Valuation of 46.74 B, profit margin of 17.79 %, and Shares Outstanding of 163.5 M as well as analyzing its technical indicators and Probability Of Bankruptcy. In general, we advise acquiring undervalued instruments and selling overvalued instruments since, at some point, asset prices and their ongoing real values will submerge.
  
Fortinet Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Fortinet's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today 51.93
Please note that Fortinet's price fluctuation is very steady at this time. Calculation of the real value of Fortinet is based on 3 months time horizon. Increasing Fortinet's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Fortinet is useful when determining the fair value of the Fortinet stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Fortinet. Since Fortinet is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Fortinet Stock. However, Fortinet's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
123.38
Real Value
126.87
Upside
Estimating the potential upside or downside of Fortinet helps investors to forecast how Fortinet stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Fortinet more accurately as focusing exclusively on Fortinet's fundamentals will not take into account other important factors:
Earnings
Estimates (11)
LowProjected EPSHigh
2.822.852.90
Details
Hype
Prediction
LowEstimated ValueHigh
48.4451.9355.42
Details
Naive
Forecast
LowNext ValueHigh
50.0553.5457.04
Details
21 Analysts
Consensus
LowTarget PriceHigh
180.00346.05425.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Fortinet's intrinsic value based on its ongoing forecasts of Fortinet's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Fortinet's closest peers. When choosing an evaluation method for Fortinet, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Fortinet Investments

1.32 Billion

Fortinet Valuation Drivers Correlation

Many accounts on the financial statements of Fortinet are highly interrelated and sometimes correlated. Consequently, when conducting Fortinet's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Fortinet
Click cells to compare fundamentals

Fortinet Valuation Trend

Knowing Fortinet's actual value is paramount for traders to make sound investment determinations. Fortinet's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Fortinet's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Fortinet's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Fortinet Market Cap

Fortinet is one of the top stocks in market capitalization category among related companies. Market capitalization of Software—Infrastructure industry is currently estimated at about 1.86 Trillion. Fortinet adds roughly 8.88 Billion in market capitalization claiming only tiny portion of equities listed under Software—Infrastructure industry.
Capitalization  Valuation  Total debt  Workforce  Revenue

Fortinet Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Fortinet's current stock value. Our valuation model uses many indicators to compare Fortinet value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Fortinet competition to find correlations between indicators driving Fortinet's intrinsic value. More Info.
Fortinet is one of the top stocks in price to book category among related companies. It is one of the top stocks in price to earning category among related companies reporting about  2.06  of Price to Earning per Price to Book. Price to Earnings Ratio is likely to gain to 113.63 in 2022. Earnings Before Interest Taxes and Depreciation Amortization EBITDA is likely to gain to about 777.1 M in 2022. Comparative valuation analysis is a catch-all model that can be used if you cannot value Fortinet by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Fortinet's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Fortinet's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Fortinet's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Fortinet and how it compares across the competition.

About Fortinet Valuation

The stock valuation mechanism determines the current worth of Fortinet on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Fortinet. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Fortinet based exclusively on its fundamental and basic technical indicators. By analyzing Fortinet's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Fortinet's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Fortinet. We calculate exposure to Fortinet's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Fortinet's related companies.
Last ReportedProjected for 2022
Gross Profit2.6 B2.8 B
Profit Margin 0.18  0.15 
Fortinet, Inc. provides broad, integrated, and automated cybersecurity solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Fortinet, Inc. was incorporated in 2000 and is headquartered in Sunnyvale, California. Fortinet operates under SoftwareInfrastructure classification in the United States and is traded on NASDAQ Exchange. It employs 10860 people.

Fortinet Quarterly Enterprise Value

45.48 Billion

Fortinet Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Fortinet does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio1.17
Earnings Quarterly Growth29.10%
Revenue Growth34.40%
Enterprise Value To Ebitda60.88
Earnings Growth31.20%
Enterprise Value To Revenue13.03

Fortinet Current Valuation Indicators

Valuation refers to the process of determining the present value of Fortinet and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Fortinet we look at many different elements of the entity such as Fortinet's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Fortinet's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Fortinet's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Fortinet, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Fortinet's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Fortinet's worth.
Please check Investing Opportunities. 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

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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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Is Fortinet's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Fortinet. If investors know Fortinet will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Fortinet listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Fortinet is measured differently than its book value, which is the value of Fortinet that is recorded on the company's balance sheet. Investors also form their own opinion of Fortinet's value that differs from its market value or its book value, called intrinsic value, which is Fortinet's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Fortinet's market value can be influenced by many factors that don't directly affect Fortinet's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Fortinet's value and its price as these two are different measures arrived at by different means. Investors typically determine Fortinet value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Fortinet's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.