Using the industry peer median P/E multiple (trailing + forward), Fortinet, Inc. (FTNT) has a fair value of $98.87 based on 6 comparable companies in the Software - Infrastructure industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Fortinet, Inc.FTNT | 60,192 | 33.1x | 27.1x |
| Seagate Technology Holdings plcSTX | 83,285 | 56.4x | 29.5x |
| Synopsys, Inc.SNPS | 77,468 | 50.3x | 31.5x |
| Motorola Solutions, Inc.MSI | 75,136 | 35.4x | 33.0x |
| TE Connectivity Ltd.TEL | 60,046 | 33.2x | 23.8x |
| Autodesk, Inc.ADSK | 50,905 | 45.9x | 23.5x |
| Workday, Inc.WDAY | 34,037 | 49.8x | 12.3x |
| Industry Median | 47.8x | 26.6x | |
| (*) Profit after tax | 1,853 | 2,225 | |
| Equity Value | 88,664 | 59,253 | |
| (/) Outstanding shares | 748 | 748 | |
| Fair Price | $119 | $79 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.