Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE.
Fortinet (FTNT) has seen mixed share price performance recently, with a small gain over the past month, a modest drop over the past 3 months, and a larger negative 1 year total return, drawing attention to its current valuation.
See our latest analysis for Fortinet.
That recent 5.2% 1 day share price return, on top of an 8.3% 7 day share price gain, contrasts with a weaker 1 year total shareholder return of a 15.8% decline. Near term momentum is improving, while longer term results remain mixed.
If Fortinet has you rethinking your tech exposure, it could be a good moment to see what else is out there through high growth tech and AI stocks.
So with Fortinet shares sitting around $81.64, carrying a value score of 4 and trading at roughly a 21% discount to one intrinsic value estimate, is this a genuine entry point or is the market already factoring in future growth?
According to one widely followed narrative, Fortinet’s fair value sits at $99.03, which is above the recent $81.64 close, putting the spotlight on what is driving that gap.
Fortinet is a model of profitability and operational efficiency. For its full fiscal year 2024, the company achieved a GAAP operating margin of 30.3% and a net profit margin of 29.3%. Its trailing-twelve-month (TTM) profit margin stands at an impressive 30.6%. This level of profitability is a direct result of its organic growth model, which avoids the heavy non-cash charges associated with large acquisitions.
Want to see why this narrative pushes Fortinet above $99 a share? It leans on firm revenue assumptions, strong margins and a future earnings multiple that reflects premium profitability. Curious how those pieces fit together into one valuation story? The full breakdown shows exactly which numbers carry the most weight in that fair value call.
Result: Fair Value of $99.03 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, this story could change quickly if hardware demand weakens or if further security vulnerabilities hurt Fortinet’s reputation and pricing power.
Find out about the key risks to this Fortinet narrative.
That $99.03 fair value hinges on cash flows and margins, but the current $81.64 price also reflects what investors are paying per dollar of earnings. Fortinet trades on a P/E of 32.4x, slightly above the US Software industry at 30.8x, yet well below peers at 59.7x and close to a 34.7x fair ratio estimate. In practice, that points to some valuation risk if sentiment weakens, but also room for the multiple to drift nearer that fair ratio. Which side of that trade off matters more to you right now?
See what the numbers say about this price — find out in our valuation breakdown.
NasdaqGS:FTNT P/E Ratio as at Jan 2026
If you see the numbers differently or prefer to put your own assumptions front and center, you can build a custom Fortinet story in minutes with Do it your way.
A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Fortinet.
If Fortinet has sparked ideas, do not stop here. Broaden your watchlist now so you are not the one hearing about the next opportunity after it moves.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include FTNT.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com