Is Fortinet, Inc. overvalued or undervalued?

As of 13 June 2025, Fortinet, Inc. has moved from an attractive to a fair valuation grade, indicating a shift in its perceived value. The company appears to be fairly valued at this time. Key ratios include a P/E ratio of 43, an EV to EBITDA of 37.22, and a PEG ratio of 0.79, which suggest that while the company has strong growth potential, its current valuation may not offer significant upside from here.
In comparison to peers, Cisco Systems, Inc. has a P/E ratio of 24.57, indicating it is more attractively priced, while International Business Machines Corp. is considered very expensive with a P/E of 84.75. The high ROE of 95.20% for Fortinet reflects its efficiency in generating profits relative to shareholder equity, but the elevated P/E ratio suggests that the stock may not be a bargain at its current price of 103.15. Notably, Fortinet has outperformed the S&P 500 over the past year with a return of 76.14% compared to the index's 10.26%, reinforcing its strong market position despite the recent valuation adjustment.