Price to Sales (P/S)
since 2009
Calculation
Fortinet Inc., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Revenue1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 24, 2023 | 10.45 | = | 58.86 | ÷ | 5.63 | 5.63 | = | 4,417,400 | ÷ | 784,066,289 | |
| Feb 25, 2022 | 15.64 | = | 64.99 | ÷ | 4.16 | 4.16 | = | 3,342,200 | ÷ | 804,077,230 | |
| Feb 19, 2021 | 10.82 | = | 34.39 | ÷ | 3.18 | 3.18 | = | 2,594,400 | ÷ | 815,954,595 | |
| Feb 26, 2020 | 8.50 | = | 21.25 | ÷ | 2.50 | 2.50 | = | 2,156,200 | ÷ | 862,573,610 | |
| Feb 27, 2019 | 8.33 | = | 17.58 | ÷ | 2.11 | 2.11 | = | 1,801,200 | ÷ | 853,168,355 | |
| Feb 26, 2018 | 5.65 | = | 10.06 | ÷ | 1.78 | 1.78 | = | 1,494,930 | ÷ | 840,120,815 | |
| Mar 1, 2017 | 5.13 | = | 7.46 | ÷ | 1.45 | 1.45 | = | 1,275,443 | ÷ | 876,600,115 | |
| Feb 26, 2016 | 4.78 | = | 5.62 | ÷ | 1.18 | 1.18 | = | 1,009,268 | ÷ | 858,018,055 | |
| Mar 2, 2015 | 7.47 | = | 6.82 | ÷ | 0.91 | 0.91 | = | 770,364 | ÷ | 844,327,300 | |
| Mar 3, 2014 | 6.02 | = | 4.55 | ÷ | 0.76 | 0.76 | = | 615,297 | ÷ | 814,266,565 | |
| Feb 27, 2013 | 7.51 | = | 4.96 | ÷ | 0.66 | 0.66 | = | 533,639 | ÷ | 808,039,760 | |
| Feb 28, 2012 | 9.88 | = | 5.48 | ÷ | 0.55 | 0.55 | = | 433,576 | ÷ | 781,815,035 | |
| Feb 25, 2011 | 9.62 | = | 4.15 | ÷ | 0.43 | 0.43 | = | 324,696 | ÷ | 752,314,930 | |
| Mar 5, 2010 | 4.56 | = | 1.71 | ÷ | 0.37 | 0.37 | = | 252,115 | ÷ | 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 metrics indicate a long-term trajectory of growth in both market valuation and operational revenue, characterized by a steady increase in sales per share and a volatile but generally upward-trending Price to Sales (P/S) ratio.
- Share Price Trends
- A significant appreciation in share price is observed over the analyzed period. The price grew from 1.71 USD in 2010 to a peak of 64.99 USD in 2022, representing substantial capital appreciation before a slight contraction to 58.86 USD in 2023.
- Revenue Performance
- Sales per share demonstrate a consistent and uninterrupted upward trend. Starting at 0.37 USD in 2010, the figure increased annually to reach 5.63 USD by 2023. This linear growth suggests a sustained expansion of the company's top-line revenue relative to its share count.
- Price to Sales (P/S) Ratio Analysis
- The P/S ratio reflects shifting market sentiment and valuation premiums. An initial spike occurred between 2011 and 2012, where the ratio reached 9.88. This was followed by a period of relative stabilization and moderation between 2013 and 2018, with values fluctuating between 4.78 and 7.51. A second, more aggressive expansion phase began in 2019, leading to a historical peak of 15.64 in 2022, which coincides with the peak share price. A subsequent correction is noted in 2023, with the ratio descending to 10.45.
- Valuation Correlation
- While revenue grew steadily, the P/S ratio suggests that the market valuation grew at a non-linear rate. The surge in the P/S ratio between 2020 and 2022 indicates that the share price increased significantly faster than the sales per share during this window, implying a higher growth expectation or an expansion in valuation multiples before the 2023 adjustment.
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Comparison to Competitors
Fortinet Inc., P/S, 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 | 10.45 | 2.56 | 8.95 | 1.80 | 14.23 | 14.64 | 1.94 | 9.30 | 10.40 | 4.25 | 9.34 | 9.62 | 7.40 | 12.75 | 10.03 | 11.19 |
| Feb 25, 2022 | 15.64 | 4.28 | 14.94 | 5.99 | 12.55 | 49.25 | 1.94 | 16.09 | 12.81 | 5.38 | 15.58 | 10.72 | 9.24 | 19.02 | 13.22 | 13.95 |
| Feb 19, 2021 | 10.82 | 3.26 | 17.04 | — | 13.85 | 49.57 | 1.47 | 11.78 | 10.85 | 4.33 | 39.86 | 6.66 | 8.88 | 25.66 | 10.08 | 10.65 |
| Feb 26, 2020 | 8.50 | 2.72 | 15.11 | — | 8.56 | 36.28 | 1.63 | 11.05 | 8.38 | 4.74 | — | 7.06 | 9.00 | 19.36 | 6.27 | 14.75 |
| Feb 27, 2019 | 8.33 | 2.35 | 13.23 | — | 7.53 | — | 1.56 | 9.52 | 7.51 | 4.41 | — | 9.75 | 8.89 | 16.63 | 4.10 | 13.73 |
| Feb 26, 2018 | 5.65 | 2.45 | 13.32 | — | 5.85 | — | 1.82 | 6.99 | 6.19 | 5.56 | — | 7.49 | 6.96 | 14.55 | 4.80 | 11.06 |
| Mar 1, 2017 | 5.13 | 2.13 | 9.34 | — | 4.53 | — | 2.12 | 6.17 | 5.13 | 4.45 | — | 9.69 | 7.09 | 10.50 | 3.71 | 12.08 |
| Feb 26, 2016 | 4.78 | 2.11 | 9.27 | — | 3.73 | — | 1.56 | 5.56 | 3.99 | 4.66 | — | 16.88 | 7.82 | 8.69 | 3.07 | 19.97 |
| Mar 2, 2015 | 7.47 | 1.61 | 8.59 | — | 3.42 | — | 1.76 | 5.32 | 4.10 | 4.67 | — | 13.17 | 9.54 | 16.81 | 3.15 | 35.87 |
| Mar 3, 2014 | 6.02 | 1.64 | 7.45 | — | 2.96 | — | 1.91 | 4.47 | 3.41 | 3.75 | — | 8.38 | 8.92 | 22.61 | 3.12 | 37.91 |
| Feb 27, 2013 | 7.51 | 1.54 | 4.30 | — | 3.02 | — | 2.12 | 4.27 | 3.32 | 3.66 | — | 17.50 | 8.91 | 19.84 | 2.76 | — |
| Feb 28, 2012 | 9.88 | 1.47 | 3.65 | — | 2.81 | — | 2.15 | 3.71 | 3.32 | 4.60 | — | — | 9.79 | — | 2.52 | — |
| Feb 25, 2011 | 9.62 | 1.36 | 4.50 | — | 2.76 | — | 1.98 | 4.12 | 3.57 | 4.04 | — | — | 7.35 | — | 2.93 | — |
| Mar 5, 2010 | 4.56 | 1.20 | 6.12 | — | 1.81 | — | 1.72 | 2.81 | 3.63 | 4.63 | — | — | 3.52 | — | 2.33 | — |
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/S, long-term trends, comparison to sector (software & services)
| Fortinet Inc. | Software & Services | |
|---|---|---|
| Feb 24, 2023 | 10.45 | 7.38 |
| Feb 25, 2022 | 15.64 | 9.45 |
| Feb 19, 2021 | 10.82 | 7.72 |
| Feb 26, 2020 | 8.50 | 6.11 |
| Feb 27, 2019 | 8.33 | 5.24 |
| Feb 26, 2018 | 5.65 | 4.65 |
| Mar 1, 2017 | 5.13 | 3.95 |
| Feb 26, 2016 | 4.78 | 3.41 |
| Mar 2, 2015 | 7.47 | 3.34 |
| Mar 3, 2014 | 6.02 | 2.89 |
| Feb 27, 2013 | 7.51 | 2.79 |
| Feb 28, 2012 | 9.88 | 2.85 |
| Feb 25, 2011 | 9.62 | 2.73 |
| Mar 5, 2010 | 4.56 | 2.61 |
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/S, long-term trends, comparison to industry (information technology)
| Fortinet Inc. | Information Technology | |
|---|---|---|
| Feb 24, 2023 | 10.45 | 6.01 |
| Feb 25, 2022 | 15.64 | 6.98 |
| Feb 19, 2021 | 10.82 | 6.11 |
| Feb 26, 2020 | 8.50 | 4.62 |
| Feb 27, 2019 | 8.33 | 4.31 |
| Feb 26, 2018 | 5.65 | 4.18 |
| Mar 1, 2017 | 5.13 | 3.46 |
| Feb 26, 2016 | 4.78 | 3.03 |
| Mar 2, 2015 | 7.47 | 3.31 |
| Mar 3, 2014 | 6.02 | 2.85 |
| Feb 27, 2013 | 7.51 | 2.88 |
| Feb 28, 2012 | 9.88 | 2.84 |
| Feb 25, 2011 | 9.62 | 3.04 |
| Mar 5, 2010 | 4.56 | 3.11 |
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).