Is Fortinet, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Fortinet, Inc. moved from expensive to very attractive, indicating a significant shift in its perceived value. The company appears to be undervalued based on its current metrics, with 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 International Business Machines Corp. is considered very expensive with a P/E of 82.85.
Despite recent challenges, including a year-to-date return of -11.69% compared to the S&P 500's 13.30%, Fortinet's long-term performance remains strong, with a 5-year return of 217.17% against the S&P 500's 91.29%. This suggests that while short-term fluctuations may be concerning, the overall valuation metrics indicate that Fortinet is positioned attractively in the market.