Is Fortinet, Inc. overvalued or undervalued?

As of 7 August 2025, the valuation grade for Fortinet, Inc. has moved from attractive to very attractive, indicating a strong improvement in its valuation outlook. The company appears to be undervalued, supported by a P/E ratio of 43, a PEG ratio of 0.79, and an EV to EBITDA ratio of 37.22. In comparison, Cisco Systems, Inc. has a P/E of 23.85 and an EV to EBITDA of 17.61, while Accenture Plc shows a P/E of 21.26 and an EV to EBITDA of 13.98, highlighting Fortinet's relatively higher valuation metrics.
Despite recent stock performance showing a year-to-date decline of 14.28% compared to a 12.22% gain for the S&P 500, the long-term perspective is more favorable, with a 5-year return of 245.28% against the S&P 500's 96.61%. This suggests that while Fortinet may be experiencing short-term challenges, its long-term growth potential remains strong, reinforcing the view that it is undervalued.