Latest Ratios: P/E Ratio 65.3x · EV/EBITDA 51.9x · ROE 135.7%. (2007–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $117.4B | $59.4B | $72.9B | $46.1B | $39.4B | $60.1B | $24.9B | $18.7B | $12.3B | $7.8B | $5.3B |
| Enterprise Value | $115.9B | $57.9B | $71.0B | $45.7B | $38.7B | $59.7B | $23.9B | $17.5B | $11.2B | $7.0B | $4.6B |
| P/E Ratio → | 65.30 | 32.68 | 41.81 | 40.09 | 46.12 | 98.47 | 51.22 | 56.18 | 37.08 | 242.78 | 167.22 |
| P/S Ratio | 17.27 | 8.74 | 12.25 | 8.70 | 8.91 | 17.97 | 9.60 | 8.64 | 6.80 | 5.21 | 4.16 |
| P/B Ratio | 95.91 | 48.00 | 48.82 | — | — | 75.22 | 29.10 | 13.92 | 12.15 | 13.20 | 6.33 |
| P/FCF | 52.75 | 26.69 | 38.81 | 26.65 | 27.16 | 49.89 | 26.01 | 26.10 | 20.95 | 16.95 | 19.05 |
| P/OCF | 45.32 | 22.93 | 32.30 | 23.84 | 22.75 | 40.05 | 22.99 | 23.12 | 19.21 | 13.09 | 15.35 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 8.52 | 11.93 | 8.62 | 8.76 | 17.87 | 9.19 | 8.07 | 6.18 | 4.66 | 3.60 |
| EV / EBITDA | 51.88 | 25.92 | 36.88 | 33.76 | 36.02 | 81.28 | 39.71 | 42.31 | 38.47 | 42.17 | 50.30 |
| EV / EBIT | 55.67 | 25.04 | 34.18 | 33.75 | 39.73 | 92.84 | 44.03 | 45.23 | 47.61 | 63.32 | 98.03 |
| EV / FCF | — | 26.01 | 37.81 | 26.41 | 26.69 | 49.61 | 24.90 | 24.39 | 19.05 | 15.18 | 16.51 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 80.8% | 80.8% | 80.6% | 76.7% | 75.4% | 76.6% | 78.0% | 76.6% | 75.0% | 74.2% | 73.5% |
| Operating Margin | 30.6% | 30.6% | 30.3% | 23.4% | 21.9% | 19.5% | 20.5% | 16.2% | 13.0% | 7.3% | 3.4% |
| Net Profit Margin | 27.3% | 27.3% | 29.3% | 21.6% | 19.4% | 18.2% | 18.8% | 15.3% | 18.6% | 2.1% | 2.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 135.7% | 135.7% | 338.7% | — | 331.8% | 73.4% | 44.4% | 28.2% | 41.9% | 4.4% | 4.0% |
| ROA | 18.4% | 18.4% | 20.5% | 17.0% | 14.1% | 12.2% | 12.3% | 9.5% | 12.6% | 1.4% | 1.6% |
| ROIC | — | — | — | — | — | 372.5% | — | 2974.6% | — | — | 18.9% |
| ROCE | 37.7% | 37.7% | 39.0% | 37.1% | 28.7% | 22.4% | 22.9% | 16.5% | 15.4% | 8.6% | 3.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.81 | 0.81 | 0.67 | — | — | 1.24 | — | — | — | — | — |
| Debt / EBITDA | 0.45 | 0.45 | 0.52 | 0.73 | 0.92 | 1.35 | — | — | — | — | — |
| Net Debt / Equity | — | -1.21 | -1.26 | — | — | -0.41 | -1.24 | -0.91 | -1.10 | -1.38 | -0.85 |
| Net Debt / EBITDA | -0.67 | -0.67 | -0.98 | -0.30 | -0.64 | -0.45 | -1.77 | -2.96 | -3.83 | -4.91 | -7.76 |
| Debt / FCF | — | -0.67 | -1.00 | -0.23 | -0.48 | -0.27 | -1.11 | -1.71 | -1.90 | -1.77 | -2.55 |
| Interest Coverage | 115.05 | 115.05 | 103.92 | 64.51 | 54.08 | 43.17 | — | — | — | — | — |
Net cash position: cash ($2.5B) exceeds total debt ($996M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.17 | 1.17 | 1.47 | 1.19 | 1.24 | 1.55 | 1.50 | 1.90 | 1.77 | 1.67 | 1.86 |
| Quick Ratio | 1.09 | 1.09 | 1.39 | 1.06 | 1.15 | 1.48 | 1.42 | 1.82 | 1.70 | 1.60 | 1.73 |
| Cash Ratio | 0.71 | 0.71 | 1.00 | 0.66 | 0.72 | 1.10 | 1.00 | 1.42 | 1.31 | 1.22 | 1.31 |
| Asset Turnover | — | 0.65 | 0.61 | 0.73 | 0.71 | 0.56 | 0.64 | 0.56 | 0.59 | 0.66 | 0.60 |
| Inventory Turnover | 3.26 | 3.26 | 3.67 | 2.55 | 4.10 | 4.45 | 4.08 | 4.29 | 5.00 | 4.98 | 3.16 |
| Days Sales Outstanding | — | 90.78 | 89.68 | 96.47 | 104.25 | 88.21 | 101.30 | 91.85 | 89.91 | 85.01 | 89.58 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.5% | 3.1% | 2.4% | 2.5% | 2.2% | 1.0% | 2.0% | 1.8% | 2.7% | 0.4% | 0.6% |
| FCF Yield | 1.9% | 3.7% | 2.6% | 3.8% | 3.7% | 2.0% | 3.8% | 3.8% | 4.8% | 5.9% | 5.2% |
| Buyback Yield | 2.0% | 3.9% | 0.0% | 3.3% | 5.1% | 1.2% | 4.3% | 0.8% | 1.7% | 5.7% | 2.1% |
| Total Shareholder Yield | 2.0% | 3.9% | 0.0% | 3.3% | 5.1% | 1.2% | 4.3% | 0.8% | 1.7% | 5.7% | 2.1% |
| Shares Outstanding | — | $748M | $772M | $788M | $805M | $836M | $839M | $875M | $871M | $890M | $882M |
Hardware refresh cycle volatility
Based on current market data, Fortinet trades at a forward P/E of 48.04, which suggests that investors are pricing in sustained double-digit growth, though this multiple remains significantly lower than Palo Alto Networks' 190.12, indicating a more tempered market outlook for Fortinet's hardware-integrated business model.
The valuation gap between Fortinet and its cloud-native peers implies that the market remains skeptical regarding the long-term durability of hardware-centric security. While the PEG ratio of 1.88 suggests a premium, it may be justified if the company successfully pivots its installed base toward higher-margin software-defined security services.
As reported in recent financial statements, Fortinet's ROE has shown significant volatility, peaking at 90.3% in 2024Q3 before settling at 48.0% in 2026Q1, a trend that highlights the company's ability to generate substantial returns on equity through high gross margins and disciplined capital allocation.
The fluctuation in ROE appears largely driven by changes in the equity base and the timing of share repurchases rather than operational decay. Investors should monitor whether the company can maintain these elevated return levels as it shifts toward a more software-heavy revenue mix, which typically requires less capital intensity.
According to quarterly filings, the company's cash conversion cycle remains elevated at 114 days in 2026Q1, primarily due to a DIO of 95 days, which reflects the inherent inventory requirements of maintaining a global hardware supply chain for its proprietary FortiASIC security appliances.
The relatively long CCC suggests that Fortinet carries significant inventory risk compared to pure-play software peers. While this inventory is necessary to support hardware-led growth, any slowdown in enterprise demand could lead to obsolescence risks and pressure on the company's working capital efficiency.
Based on the provided balance sheet data, Fortinet maintains a current ratio of 1.15 as of 2026Q1, which, while appearing modest, is bolstered by a substantial deferred revenue balance that acts as a non-cash liability and a reliable indicator of future service-based cash inflows.
The liquidity position appears adequate to cover short-term obligations, especially given the recurring nature of the service revenue stream. However, the reliance on hardware sales means that liquidity could tighten if enterprise customers significantly delay their hardware refresh cycles during periods of macroeconomic uncertainty.
Market participants frequently misapply the Price-to-Sales ratio to Fortinet, failing to adjust for the significant mix shift between low-margin hardware and high-margin recurring services, which obscures the underlying improvement in the company's true earning power and long-term cash generation potential.
Using a simple P/S multiple ignores the quality of revenue, as a dollar of service revenue is structurally more valuable than a dollar of hardware revenue. Analysts should instead focus on billings growth and free cash flow margins to better assess the company's valuation relative to its evolving business model.
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Quick answers to the most common questions about buying FTNT stock.
Fortinet, Inc.'s current P/E ratio is 65.3x. The historical average is 59.6x. This places it at the 79th percentile of its historical range.
Fortinet, Inc.'s current EV/EBITDA is 51.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 41.2x.
Fortinet, Inc.'s return on equity (ROE) is 135.7%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 72.6%.
Based on historical data, Fortinet, Inc. is trading at a P/E of 65.3x. This is at the 79th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Fortinet, Inc. has 80.8% gross margin and 30.6% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Fortinet, Inc.'s Debt/EBITDA ratio is 0.4x, indicating low leverage. A ratio below 2x is generally considered financially healthy.