StocksFTNT

FTNT

Fortinet, Inc.Technology / Software - InfrastructureINTACT

Fortinet, Inc. provides cybersecurity and convergence of networking and security solutions worldwide. The company offers FortiOS, a unified operating system designed to address cybersecurity threats; FortiASIC application-specific integrated circuit (ASIC)-based security processing units; FortiCloud, a private cloud software as a service platform; FortiAI, which provides a dual-layered defense across the Fortinet Security Fabric; FortiEndpoint, which converges secure connectivity, endpoint protection, and capabilities into a single agent; and OT Security, which protect the engineered systems that underpin infrastructure and supply chains. It also provides secure networking solutions that focus on the convergence of networking and security; network firewall solutions comprising FortiGate data centers, hyperscale, and distributed firewalls; wireless local area network solutions; and secure connectivity solutions. In addition, the company offers the Fortinet Unified Secure Access Service Edge solutions that include firewall, software-defined wide-area network, secure web gateway, cloud access services broker, data loss prevention, and zero trust network access; and web application firewalls, cloud network security with virtualized firewalls, cloud-native firewalls, cloud-native application protection, and code security. Further, it provides AI-driven security operation solutions, which include a suite of cybersecurity solutions, as well as FortiEDR, FortiXDR, FortiNDR, FortiSandbox, FortiDeceptor, FortiDLP, and FortiRecon. Additionally, the company offers FortiGuard Labs, a cybersecurity threat intelligence and research organization; FortiGuard and Other Security Services, a suite of AI-powered security capabilities that consists of FortiGuard application, content, device, NOC/SOC, and web security services; and FortiCare technical support services. Fortinet, Inc. was incorporated in 2000 and is headquartered in Sunnyvale, California.

Share Price
$156.07
52W: $73.55 - $173.89
DCF Fair Value
$98.86
-57.9% Premium
P/E (TTM)
55.1x
ROIC
25.2%
Operating Margin
33.6%
FCF Yield
2%
Debt / Equity
0.36x
Piotroski Score
8/9
Altman Z-Score
2.91
Market Cap
$114.5B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($98.86)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)
()
Period Range
$ - $
DCF Fair Value
$98.86
MOS Buy Target (-25%)
$74.15
Valuation Overlays:

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price
$156.07
DCF Fair Value
$98.81
-58% Premium
$2,266M
$100M$2,266M (Reported)$50,000M
16.8%
-5%10% (Target)35%
4.5%
0%5%20%
9.0%
6%9% (Standard)15% (High Risk)
2.5%
1% (GDP Floor)2.5% (Inflation)4.0%
-$3,500M (Net Cash)
-$100B CashBalance Sheet+$150B Debt
10-Yr PV of Cash Flows
$28.1B
PV of Terminal Value
$40.9B
Implied Enterprise Value
$69.0B
Implied Equity Value
$72.5B
YearYr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10
Projected FCF ($M)$2,647$3,091$3,611$4,217$4,926$5,147$5,379$5,621$5,874$6,138
Present Value (PV)$2,428$2,602$2,788$2,988$3,201$3,069$2,943$2,821$2,705$2,593

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-1246.6% Premium
$11.59

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $2.83BVPS: $2.11
Revised Graham Formula-78.5% Premium
$87.42

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Buffett Owner Earnings1.9% Yield
$2.93 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $2.2BYield: 1.9%

Reverse DCF: Market Growth Expectation

HIGH BARRIER
18.0% CAGR (Next 10 Yrs)

At the current price of $156.07, the market is assuming the business will compound Free Cash Flow at 18.0% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict
⚠ High expectations: Leaves minimal margin of safety for operational hiccups.
Autonomous Thesis Underwriting

Surveil FTNT with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Fortinet, Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 33.6% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

Frequently Asked Questions: Fortinet, Inc. (FTNT) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Fortinet, Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Fortinet, Inc. has an estimated DCF intrinsic fair value of $98.86 per share compared to its current market price of $156.07. This represents an estimated 57.9% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $11.60.

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