Price to Earnings (P/E)
since 2009
Calculation
Fortinet Inc., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income attributable to Fortinet, Inc.1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 24, 2023 | 53.83 | = | 58.86 | ÷ | 1.09 | 1.09 | = | 857,300 | ÷ | 784,066,289 | |
| Feb 25, 2022 | 86.12 | = | 64.99 | ÷ | 0.75 | 0.75 | = | 606,800 | ÷ | 804,077,230 | |
| Feb 19, 2021 | 57.44 | = | 34.39 | ÷ | 0.60 | 0.60 | = | 488,500 | ÷ | 815,954,595 | |
| Feb 26, 2020 | 56.14 | = | 21.25 | ÷ | 0.38 | 0.38 | = | 326,500 | ÷ | 862,573,610 | |
| Feb 27, 2019 | 45.15 | = | 17.58 | ÷ | 0.39 | 0.39 | = | 332,200 | ÷ | 853,168,355 | |
| Feb 26, 2018 | 269.17 | = | 10.06 | ÷ | 0.04 | 0.04 | = | 31,399 | ÷ | 840,120,815 | |
| Mar 1, 2017 | 203.17 | = | 7.46 | ÷ | 0.04 | 0.04 | = | 32,187 | ÷ | 876,600,115 | |
| Feb 26, 2016 | 603.74 | = | 5.62 | ÷ | 0.01 | 0.01 | = | 7,987 | ÷ | 858,018,055 | |
| Mar 2, 2015 | 227.22 | = | 6.82 | ÷ | 0.03 | 0.03 | = | 25,343 | ÷ | 844,327,300 | |
| Mar 3, 2014 | 83.68 | = | 4.55 | ÷ | 0.05 | 0.05 | = | 44,273 | ÷ | 814,266,565 | |
| Feb 27, 2013 | 59.97 | = | 4.96 | ÷ | 0.08 | 0.08 | = | 66,836 | ÷ | 808,039,760 | |
| Feb 28, 2012 | 68.56 | = | 5.48 | ÷ | 0.08 | 0.08 | = | 62,492 | ÷ | 781,815,035 | |
| Feb 25, 2011 | 75.70 | = | 4.15 | ÷ | 0.05 | 0.05 | = | 41,245 | ÷ | 752,314,930 | |
| Mar 5, 2010 | 19.12 | = | 1.71 | ÷ | 0.09 | 0.09 | = | 60,179 | ÷ | 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.
An analysis of the financial metrics from 2010 to 2023 reveals a period of extreme valuation volatility followed by a phase of earnings-driven stabilization. While the share price exhibited a strong long-term upward trajectory, the price-to-earnings (P/E) ratio fluctuated significantly, reflecting a period where market pricing was decoupled from actual earnings performance during the mid-2010s.
- Share Price Appreciation
- A consistent growth pattern is evident in the share price, which rose from 1.71 US$ in 2010 to a peak of 64.99 US$ in 2022. This represents a substantial increase in market valuation over the period, despite a slight contraction to 58.86 US$ by 2023.
- Earnings Per Share (EPS) Evolution
- Earnings remained relatively stagnant and low between 2010 and 2018, fluctuating within a narrow range between 0.01 US$ and 0.09 US$. A significant inflection point occurred in 2019, when EPS rose to 0.39 US$ and maintained an upward trajectory, reaching 1.09 US$ by 2023. This shift indicates a transition from a period of minimal profitability to a phase of accelerated earnings growth.
- P/E Ratio Volatility and Normalization
- The P/E ratio experienced extreme expansion between 2015 and 2018, reaching a peak of 603.74 in 2016. This spike was primarily driven by a sharp decline in EPS to 0.01 US$ occurring simultaneously with a rising share price. Following 2018, the ratio normalized significantly, dropping to 45.15 in 2019 and ending at 53.83 in 2023. This trend suggests that the valuation has become more sustainable as earnings growth began to keep pace with the share price.
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Comparison to Competitors
Fortinet Inc., P/E, 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 | 53.83 | 22.93 | 33.15 | — | 59.70 | — | 71.56 | 57.31 | 28.34 | 26.85 | — | — | 135.68 | 284.29 | 51.76 | 1,957.29 |
| Feb 25, 2022 | 86.12 | 36.58 | 48.90 | 472.35 | 53.88 | — | 19.40 | 75.17 | 35.14 | 15.84 | — | — | 48.20 | 487.70 | 73.37 | — |
| Feb 19, 2021 | 57.44 | 28.32 | 41.69 | — | 62.89 | — | 19.30 | 49.52 | 35.04 | 16.69 | — | — | 1,204.70 | 978.49 | 55.92 | — |
| Feb 26, 2020 | 56.14 | 24.58 | 57.17 | — | 20.22 | — | 13.35 | 48.17 | 26.86 | 16.89 | — | — | 107.70 | 106.89 | 39.55 | — |
| Feb 27, 2019 | 45.15 | 24.10 | 46.11 | — | 46.59 | — | 14.25 | 46.88 | 50.00 | 45.90 | — | — | 731.11 | — | 29.60 | — |
| Feb 26, 2018 | 269.17 | 26.18 | 57.41 | — | 55.67 | — | 25.07 | 37.26 | 26.25 | 22.49 | — | — | 324.94 | — | 95.81 | — |
| Mar 1, 2017 | 203.17 | 18.07 | 46.80 | — | 40.53 | — | 14.29 | 29.60 | 26.08 | 18.53 | — | — | — | — | 33.71 | — |
| Feb 26, 2016 | 603.74 | 22.75 | 70.59 | — | 25.14 | — | 9.65 | 63.89 | 30.63 | 17.92 | — | — | — | — | 30.45 | — |
| Mar 2, 2015 | 227.22 | 17.46 | 132.73 | — | 34.03 | — | 13.55 | 26.44 | 16.11 | 16.33 | — | — | — | — | 25.00 | — |
| Mar 3, 2014 | 83.68 | 15.20 | 104.21 | — | 26.30 | — | 11.58 | 21.73 | 12.14 | 12.78 | — | — | — | — | 24.68 | — |
| Feb 27, 2013 | 59.97 | 17.95 | 22.73 | — | 9.11 | — | 13.37 | 22.37 | 14.40 | 13.61 | — | 6,057.94 | — | — | 26.53 | — |
| Feb 28, 2012 | 68.56 | 17.60 | 18.49 | — | 44.80 | — | 14.47 | 22.53 | 10.03 | 19.17 | — | — | 251.73 | — | 17.51 | — |
| Feb 25, 2011 | 75.70 | 17.62 | 22.05 | — | 20.39 | — | 13.32 | 24.82 | 11.91 | 17.66 | — | — | 118.88 | — | 17.09 | — |
| Mar 5, 2010 | 19.12 | 17.45 | 46.62 | — | — | — | 12.24 | 20.01 | 14.56 | 19.25 | — | — | 87.39 | — | 18.86 | — |
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/E, long-term trends, comparison to sector (software & services)
| Fortinet Inc. | Software & Services | |
|---|---|---|
| Feb 24, 2023 | 53.83 | 34.25 |
| Feb 25, 2022 | 86.12 | 37.62 |
| Feb 19, 2021 | 57.44 | 38.46 |
| Feb 26, 2020 | 56.14 | 28.30 |
| Feb 27, 2019 | 45.15 | 43.31 |
| Feb 26, 2018 | 269.17 | 30.27 |
| Mar 1, 2017 | 203.17 | 23.96 |
| Feb 26, 2016 | 603.74 | 23.38 |
| Mar 2, 2015 | 227.22 | 18.36 |
| Mar 3, 2014 | 83.68 | 14.09 |
| Feb 27, 2013 | 59.97 | 14.97 |
| Feb 28, 2012 | 68.56 | 13.91 |
| Feb 25, 2011 | 75.70 | 14.04 |
| Mar 5, 2010 | 19.12 | 15.17 |
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/E, long-term trends, comparison to industry (information technology)
| Fortinet Inc. | Information Technology | |
|---|---|---|
| Feb 24, 2023 | 53.83 | 26.99 |
| Feb 25, 2022 | 86.12 | 29.75 |
| Feb 19, 2021 | 57.44 | 30.97 |
| Feb 26, 2020 | 56.14 | 23.40 |
| Feb 27, 2019 | 45.15 | 23.17 |
| Feb 26, 2018 | 269.17 | 23.55 |
| Mar 1, 2017 | 203.17 | 19.69 |
| Feb 26, 2016 | 603.74 | 16.54 |
| Mar 2, 2015 | 227.22 | 17.14 |
| Mar 3, 2014 | 83.68 | 14.15 |
| Feb 27, 2013 | 59.97 | 14.37 |
| Feb 28, 2012 | 68.56 | 13.71 |
| Feb 25, 2011 | 75.70 | 15.08 |
| Mar 5, 2010 | 19.12 | 21.50 |
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).