Stock analysis · Bull Rankings model

FTNT analysis

Fortinet, Inc.Software - Infrastructure. Scored on the same transparent model behind the daily rankings.

Cybersecurity
FTNT
Fortinet, Inc. · Software - Infrastructure
FCF$2.4bB
Rev+15.7%B+
D/E0.57C+
P/E54.5xC+
PEG3.50D
56.6Score
$154.25$113.0B
1Y Target$136.11Analyst consensus · 37 analysts
5Y Target$199.28Compound horizon
10Y Target$295.61Long-dated conviction
FCF$2.4bTTM · 03/26
B
FCF $2.4b — solid, comfortably covers operations and capital return · TTM computed from 4 most-recent quarters (TTM · 03/26).
Rev+15.7%TTM YoY
B+
Revenue +15.7% — above sector median, healthy trajectory
D/E0.57
C+
D/E 0.57 — above the Technology debt median (≈75th pctile)
P/E54.5x
C+
P/E 54.5 — above the Technology median (≈75th pctile)
PEG3.50
D
PEG 3.50 — very expensive; pricing in best-case scenarios

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 56.6
Quality0.91
Growth0.95
Value0.21
Why this score
  • Buying back stock
  • Durable high returns
Entry · Margin of safety
52-week rangeNear 52-week high
9% off the 12-month high
vs DCF fair value199% aboveest. fair value ~$52
What the price assumes: free cash flow compounding at ~35% a year for the next decade — vs the ~8% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability58% · Agross profit ÷ total assets (Novy-Marx)
ROIC117.5% · Areturn on invested capital — not score-weighted
Why now
Software - Infrastructure · market cap $113.0b. 9% off the 52-week high of $170.35. Revenue growing +16%, comfortably above the S&P median. 37 sell-side analysts rate this a Hold with a mean 1-yr target of $136.11 (implying -12% upside).
Moat
Net margin 27% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. FCF converts 125% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined. $113.0b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk
Trailing P/E 54.5x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. P/S 15.9x embeds aggressive forward growth — disappointing top-line guidance would compress the multiple hard. Software — competitive moat is durable until it isn't; watch net revenue retention, gross margin trends, and any new market entrant with a fundamentally lower price point.
Horizon
1-3 yr $136.11 (37-analyst consensus) — fundamentals + valuation re-rating. 5 yr $199.28 at ~5% CAGR — compounding case rests on the competitive position widening. 10 yr $295.61 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Trend
-2.1 over 31 daily scores
From 58.7 (Jun 22) → 56.6 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Shares to buy
12
Position size
$1,851
3.7% of portfolio
Stop price
$115.69
25% below $154.25
$ at risk if stopped
$462.75
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Fortinet, Inc. (FTNT): score, valuation & FAQ

Fortinet, Inc. (FTNT) is a Software - Infrastructure company that scores 56.6 out of 100 on the Bull Rankings quality-growth model — a middling reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are Rev (B+), while PEG (D) rate weaker. On valuation, FTNT sits about 199% above our discounted-cash-flow fair value — the current price implies roughly 35% annual free-cash-flow growth over the next decade.

Is FTNT a good stock to buy?

Bull Rankings scores FTNT 56.6 out of 100 on its quality-growth model, which is a middling reading. That is driven by Rev (B+). A score is a quantitative screen of Fortinet, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does FTNT score 56.6 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). FTNT earns its highest marks on Rev (B+), and is held back by PEG (D). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is FTNT overvalued or undervalued?

Based on $154.25, FTNT sits about 199% above our discounted-cash-flow fair value — the current price implies roughly 35% annual free-cash-flow growth over the next decade. It trades at a 54.5x× P/E (graded C+). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in FTNT?

Trailing P/E 54.5x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. P/S 15.9x embeds aggressive forward growth — disappointing top-line guidance would compress the multiple hard. Software — competitive moat is durable until it isn't; watch net revenue retention, gross margin trends, and any new market entrant with a fundamentally lower price point.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.

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