Using the PEG framework with analyst consensus forward EPS growth of 8.0%, Fortinet, Inc. has a fair value of $23.80 based on NTM EPS (FY2026) of $2.97. The current PEG ratio is 4.32.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG tends to undervalue slow growers — consider dividend yield and asset value instead.
| EPS Growth RateForward | 6.3% |
| Adjusted Growth (clamped 8–25%)Clamped | 8.0% |
| Fair P/E | 8.0x |
| NTM EPS (FY2026) | $2.97 |
| Fair Value | $23.80 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $2.43 | — | — |
| FY2026E | $2.97 | +22.4% | 33 |
| FY2027E | $3.30 | +11.1% | 32 |
| FY2028E | $3.67 | +11.1% | 14 |
| FY2029E | $3.08 | -16.1% | 9 |
| FY2030E | $3.29 | +6.9% | 13 |
5Y Forward EPS CAGR: 6.3%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.
| Year | Net Income | EPS | YoY |
|---|
| FY2021 | $606.8M | $0.73 | — |
| FY2022 | $857.3M | $1.06 | +45.2% |
| FY2023 | $1.1B | $1.46 | +37.7% |
| FY2024 | $1.7B | $2.26 | +54.8% |
| FY2025 | $1.9B | $2.43 | +7.5% |
4Y Historical EPS CAGR: 35.1%