Price to Operating Profit (P/OP)
since 2009
Calculation
Fortinet Inc., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 24, 2023 | 47.60 | = | 58.86 | ÷ | 1.24 | 1.24 | = | 969,600 | ÷ | 784,066,289 | |
| Feb 25, 2022 | 80.35 | = | 64.99 | ÷ | 0.81 | 0.81 | = | 650,400 | ÷ | 804,077,230 | |
| Feb 19, 2021 | 52.77 | = | 34.39 | ÷ | 0.65 | 0.65 | = | 531,800 | ÷ | 815,954,595 | |
| Feb 26, 2020 | 53.25 | = | 21.25 | ÷ | 0.40 | 0.40 | = | 344,200 | ÷ | 862,573,610 | |
| Feb 27, 2019 | 64.93 | = | 17.58 | ÷ | 0.27 | 0.27 | = | 231,000 | ÷ | 853,168,355 | |
| Feb 26, 2018 | 76.97 | = | 10.06 | ÷ | 0.13 | 0.13 | = | 109,804 | ÷ | 840,120,815 | |
| Mar 1, 2017 | 152.28 | = | 7.46 | ÷ | 0.05 | 0.05 | = | 42,944 | ÷ | 876,600,115 | |
| Feb 26, 2016 | 324.13 | = | 5.62 | ÷ | 0.02 | 0.02 | = | 14,877 | ÷ | 858,018,055 | |
| Mar 2, 2015 | 97.07 | = | 6.82 | ÷ | 0.07 | 0.07 | = | 59,324 | ÷ | 844,327,300 | |
| Mar 3, 2014 | 51.39 | = | 4.55 | ÷ | 0.09 | 0.09 | = | 72,090 | ÷ | 814,266,565 | |
| Feb 27, 2013 | 39.89 | = | 4.96 | ÷ | 0.12 | 0.12 | = | 100,475 | ÷ | 808,039,760 | |
| Feb 28, 2012 | 48.19 | = | 5.48 | ÷ | 0.11 | 0.11 | = | 88,904 | ÷ | 781,815,035 | |
| Feb 25, 2011 | 56.42 | = | 4.15 | ÷ | 0.07 | 0.07 | = | 55,341 | ÷ | 752,314,930 | |
| Mar 5, 2010 | 45.42 | = | 1.71 | ÷ | 0.04 | 0.04 | = | 25,334 | ÷ | 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 data indicates a long-term expansion in market valuation paired with a general upward trajectory in operating profitability, although the relationship between the two has experienced significant volatility over the observed period.
- Share Price Trends
- A sustained bullish trend is evident, with the share price increasing from 1.71 US$ in 2010 to a peak of 64.99 US$ in 2022. The most aggressive growth phase occurred between 2019 and 2022, where the price tripled from 21.25 US$ to its peak value, before settling at 58.86 US$ in 2023.
- Operating Profit per Share Performance
- Operating profit per share demonstrated overall growth from 0.04 US$ in 2010 to 1.24 US$ in 2023. However, this growth was non-linear, characterized by notable contractions in 2014 and 2016. A period of accelerated profit growth began in 2018, with the figure rising consistently from 0.13 US$ to 1.24 US$ over the final five years of the data set.
- Price to Operating Profit (P/OP) Dynamics
- The P/OP ratio exhibited three distinct phases: a period of relative stability between 2010 and 2014 (ranging from 39.89 to 56.42), a period of extreme volatility between 2015 and 2017, and a period of normalization from 2018 onward. The ratio peaked at 324.13 in 2016, a result of the share price remaining elevated while operating profit per share dropped to a period low of 0.02 US$.
- Valuation Convergence
- In the final phase of the analysis, a convergence between price and operating profit is observed. As operating profit per share grew more rapidly between 2020 and 2023, the P/OP ratio declined from a high of 80.35 in 2022 to 47.60 in 2023, suggesting a valuation that is more closely aligned with actual operational earnings than during the 2016 anomaly.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Comparison to Competitors
Fortinet Inc., P/OP, long-term trends, comparison to competitors
| Fortinet Inc. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | Datadog Inc. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 24, 2023 | 47.60 | 16.83 | 25.85 | — | 47.21 | — | 46.05 | 24.72 | 16.51 | — | — | 357.52 | 260.27 | 43.85 | — |
| Feb 25, 2022 | 80.35 | 28.35 | 40.64 | 111.61 | 48.13 | — | 62.00 | 30.79 | 14.31 | — | — | 431.39 | 436.46 | 75.64 | — |
| Feb 19, 2021 | 52.77 | 22.21 | 51.75 | — | 57.54 | — | 41.56 | 29.30 | 12.17 | — | — | 511.08 | 583.08 | 59.90 | — |
| Feb 26, 2020 | 53.25 | 18.63 | 51.63 | — | 40.67 | — | 40.45 | 24.54 | 13.83 | — | — | 223.46 | 1,590.34 | 40.48 | — |
| Feb 27, 2019 | 64.93 | 16.75 | 42.06 | — | 40.66 | — | 37.92 | 23.63 | 12.83 | — | — | 395.31 | — | 35.54 | — |
| Feb 26, 2018 | 76.97 | 19.47 | 44.86 | — | 35.08 | — | 25.94 | 24.93 | 16.52 | — | — | 908.77 | — | 37.64 | — |
| Mar 1, 2017 | 152.28 | 15.44 | 36.62 | — | 33.61 | — | 23.33 | 21.70 | 13.09 | — | — | 411.51 | — | 28.34 | — |
| Feb 26, 2016 | 324.13 | 15.66 | 49.21 | — | 22.23 | — | 31.60 | 20.57 | 12.84 | — | — | — | — | 25.82 | — |
| Mar 2, 2015 | 97.07 | 11.94 | 86.32 | — | 26.17 | — | 18.25 | 12.81 | 12.12 | — | — | — | — | 26.04 | — |
| Mar 3, 2014 | 51.39 | 11.50 | 71.49 | — | 22.85 | — | 15.12 | 9.91 | 9.51 | — | — | — | — | 24.81 | — |
| Feb 27, 2013 | 39.89 | 11.84 | 16.04 | — | 18.94 | — | 15.05 | 11.23 | 9.91 | — | 1,147.44 | — | — | 25.46 | — |
| Feb 28, 2012 | 48.19 | 11.55 | 14.01 | — | 26.88 | — | 14.19 | 8.55 | 13.61 | — | — | 166.46 | — | 18.21 | — |
| Feb 25, 2011 | 56.42 | 10.76 | 17.20 | — | — | — | 16.51 | 9.27 | 11.95 | — | — | 83.25 | — | 22.01 | — |
| Mar 5, 2010 | 45.42 | 10.49 | 26.10 | — | — | — | 13.11 | 10.42 | 12.94 | — | — | 59.54 | — | 15.18 | — |
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).