Is Fortinet, Inc. overvalued or undervalued?

As of 27 June 2025, Fortinet, Inc. has moved from a fair to an attractive valuation grade, indicating that it is currently undervalued. The company's P/E ratio stands at 43, which is relatively high compared to peers like Cisco Systems, Inc. with a P/E of 24.57 and Accenture Plc at 26.54. Additionally, Fortinet's EV to EBITDA ratio is 37.22, while its PEG ratio is notably low at 0.79, suggesting potential for growth relative to its price.
In comparison to its peers, Fortinet's valuation appears more favorable, especially when contrasted with International Business Machines Corp., which is deemed very expensive with a P/E of 84.75. Despite a recent dip in stock price, Fortinet has shown impressive returns over the past year, outperforming the S&P 500 with a return of 71.74% compared to the index's 12.59%. Overall, the analysis suggests that Fortinet, Inc. is undervalued, presenting a compelling investment opportunity.