Price to Book Value (P/BV)
since 2009
Calculation
Fortinet Inc., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Total Fortinet, Inc. stockholders’ equity (deficit)1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 24, 2023 | — | = | 58.86 | ÷ | -0.36 | -0.36 | = | -281,600 | ÷ | 784,066,289 | |
| Feb 25, 2022 | 66.85 | = | 64.99 | ÷ | 0.97 | 0.97 | = | 781,700 | ÷ | 804,077,230 | |
| Feb 19, 2021 | 32.78 | = | 34.39 | ÷ | 1.05 | 1.05 | = | 856,000 | ÷ | 815,954,595 | |
| Feb 26, 2020 | 13.87 | = | 21.25 | ÷ | 1.53 | 1.53 | = | 1,321,900 | ÷ | 862,573,610 | |
| Feb 27, 2019 | 14.85 | = | 17.58 | ÷ | 1.18 | 1.18 | = | 1,010,200 | ÷ | 853,168,355 | |
| Feb 26, 2018 | 14.34 | = | 10.06 | ÷ | 0.70 | 0.70 | = | 589,377 | ÷ | 840,120,815 | |
| Mar 1, 2017 | 7.81 | = | 7.46 | ÷ | 0.96 | 0.96 | = | 837,681 | ÷ | 876,600,115 | |
| Feb 26, 2016 | 6.38 | = | 5.62 | ÷ | 0.88 | 0.88 | = | 755,377 | ÷ | 858,018,055 | |
| Mar 2, 2015 | 8.52 | = | 6.82 | ÷ | 0.80 | 0.80 | = | 675,966 | ÷ | 844,327,300 | |
| Mar 3, 2014 | 6.32 | = | 4.55 | ÷ | 0.72 | 0.72 | = | 585,760 | ÷ | 814,266,565 | |
| Feb 27, 2013 | 7.84 | = | 4.96 | ÷ | 0.63 | 0.63 | = | 510,934 | ÷ | 808,039,760 | |
| Feb 28, 2012 | 11.96 | = | 5.48 | ÷ | 0.46 | 0.46 | = | 358,354 | ÷ | 781,815,035 | |
| Feb 25, 2011 | 13.43 | = | 4.15 | ÷ | 0.31 | 0.31 | = | 232,454 | ÷ | 752,314,930 | |
| Mar 5, 2010 | 8.08 | = | 1.71 | ÷ | 0.21 | 0.21 | = | 142,452 | ÷ | 672,880,220 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Fortinet Inc. Annual Report.
The financial trajectory between 2010 and 2023 reveals a widening divergence between market valuation and the book value of equity. While the share price experienced substantial long-term appreciation, the book value per share peaked in 2020 before entering a period of contraction that culminated in negative equity by 2023.
- Share Price Evolution
- A consistent upward trend in share price is observed, rising from 1.71 US$ in 2010 to a peak of 64.99 US$ in 2022. The most aggressive growth occurred between 2020 and 2022, where the price more than tripled, although a slight correction to 58.86 US$ occurred in 2023.
- Book Value per Share (BVPS) Dynamics
- The book value per share grew steadily from 0.21 US$ in 2010 to a maximum of 1.53 US$ in 2020. Following this peak, a downward trend emerged, with BVPS declining to 0.97 US$ by 2022 and ultimately falling to -0.36 US$ in 2023, indicating a deficit in shareholders' equity.
- Price to Book Value (P/BV) Ratio Analysis
- The P/BV ratio exhibited three distinct phases. From 2010 to 2017, the ratio fluctuated between 6.32 and 13.43, suggesting a relatively stable valuation multiple relative to assets. Between 2018 and 2020, the ratio stabilized in the 13.87 to 14.85 range. A period of extreme valuation expansion occurred in 2021 and 2022, with the ratio surging to 32.78 and then to 66.85, reflecting a market valuation far exceeding the company's accounting book value.
- Terminal Valuation State
- In 2023, the P/BV ratio became unavailable for calculation. This is a direct result of the book value per share turning negative, which renders the traditional P/BV metric mathematically inapplicable for assessing the relationship between market price and net asset value.
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Comparison to Competitors
Fortinet Inc., P/BV, long-term trends, comparison to competitors
| Fortinet Inc. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | Datadog Inc. | International Business Machines Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 24, 2023 | — | 7.13 | 11.22 | 2.67 | 18.46 | 17.39 | 5.34 | 7.20 | 12.38 | — | 6.94 | 252.00 | 3.37 | 18.36 | 9.24 | 12.68 |
| Feb 25, 2022 | 66.85 | 11.06 | 15.94 | 7.83 | 13.68 | 48.66 | 5.90 | 15.71 | 15.16 | 41.57 | 10.48 | 71.88 | 4.73 | 30.36 | 10.50 | 18.38 |
| Feb 19, 2021 | 32.78 | 8.51 | 16.53 | — | 14.90 | 31.25 | 5.24 | 17.71 | 13.11 | 14.01 | 28.60 | 20.61 | 4.48 | 40.91 | 7.57 | 15.54 |
| Feb 26, 2020 | 13.87 | 8.15 | 16.03 | — | 9.51 | 16.83 | 6.04 | 20.00 | 10.30 | 8.59 | — | 12.91 | 7.66 | 31.48 | 5.16 | 21.26 |
| Feb 27, 2019 | 14.85 | 9.44 | 12.76 | — | 12.50 | — | 7.40 | 24.12 | 10.02 | 3.84 | — | 22.92 | 9.93 | 39.03 | 3.68 | 18.62 |
| Feb 26, 2018 | 14.34 | 10.08 | 11.50 | — | 11.49 | — | 8.20 | 26.72 | 7.69 | 3.90 | — | 17.37 | 7.78 | 48.15 | 3.99 | 14.93 |
| Mar 1, 2017 | 7.81 | 9.83 | 7.37 | — | 11.10 | — | 9.30 | 24.96 | 6.08 | 3.49 | — | 16.91 | 9.45 | 37.73 | 2.81 | 12.36 |
| Feb 26, 2016 | 6.38 | 11.33 | 6.35 | — | 4.61 | — | 8.92 | 10.00 | 4.66 | 3.66 | — | 32.11 | 10.57 | 15.42 | 2.20 | 13.98 |
| Mar 2, 2015 | 8.52 | 8.96 | 5.26 | — | 4.06 | — | 13.73 | 7.79 | 3.96 | 3.82 | — | 16.81 | 12.79 | 26.77 | 2.12 | 14.17 |
| Mar 3, 2014 | 6.32 | 10.06 | 4.49 | — | 3.74 | — | 8.37 | 5.28 | 3.36 | 3.13 | — | 12.19 | 11.74 | 24.35 | 2.19 | 17.51 |
| Feb 27, 2013 | 7.84 | 11.05 | 2.84 | — | 4.38 | — | 11.77 | 6.46 | 3.68 | 3.11 | — | 19.49 | 12.73 | 19.86 | 1.93 | — |
| Feb 28, 2012 | 11.96 | 10.33 | 2.66 | — | 7.87 | — | 11.39 | 5.46 | 4.07 | 4.12 | — | — | 12.71 | — | 1.84 | — |
| Feb 25, 2011 | 13.43 | 11.06 | 3.29 | — | 9.33 | — | 8.57 | 5.05 | 4.84 | 3.52 | — | — | 9.19 | — | 1.93 | — |
| Mar 5, 2010 | 8.08 | 9.61 | 3.68 | — | 14.21 | — | 7.26 | 3.50 | 5.36 | 4.29 | — | — | 5.65 | — | 1.71 | — |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31).
Comparison to Sector (Software & Services)
Fortinet Inc., P/BV, long-term trends, comparison to sector (software & services)
| Fortinet Inc. | Software & Services | |
|---|---|---|
| Feb 24, 2023 | — | 10.54 |
| Feb 25, 2022 | 66.85 | 13.51 |
| Feb 19, 2021 | 32.78 | 11.67 |
| Feb 26, 2020 | 13.87 | 10.06 |
| Feb 27, 2019 | 14.85 | 8.75 |
| Feb 26, 2018 | 14.34 | 7.21 |
| Mar 1, 2017 | 7.81 | 6.29 |
| Feb 26, 2016 | 6.38 | 5.39 |
| Mar 2, 2015 | 8.52 | 5.16 |
| Mar 3, 2014 | 6.32 | 4.47 |
| Feb 27, 2013 | 7.84 | 4.89 |
| Feb 28, 2012 | 11.96 | 5.40 |
| Feb 25, 2011 | 13.43 | 5.32 |
| Mar 5, 2010 | 8.08 | 5.46 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31).
Comparison to Industry (Information Technology)
Fortinet Inc., P/BV, long-term trends, comparison to industry (information technology)
| Fortinet Inc. | Information Technology | |
|---|---|---|
| Feb 24, 2023 | — | 10.25 |
| Feb 25, 2022 | 66.85 | 12.37 |
| Feb 19, 2021 | 32.78 | 10.94 |
| Feb 26, 2020 | 13.87 | 8.41 |
| Feb 27, 2019 | 14.85 | 7.00 |
| Feb 26, 2018 | 14.34 | 5.46 |
| Mar 1, 2017 | 7.81 | 4.53 |
| Feb 26, 2016 | 6.38 | 4.30 |
| Mar 2, 2015 | 8.52 | 4.36 |
| Mar 3, 2014 | 6.32 | 3.50 |
| Feb 27, 2013 | 7.84 | 3.75 |
| Feb 28, 2012 | 11.96 | 3.98 |
| Feb 25, 2011 | 13.43 | 4.16 |
| Mar 5, 2010 | 8.08 | 4.31 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31).