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 shift towards a more favorable assessment. Based on the current metrics, the company appears undervalued. The P/E ratio stands at 43, while the PEG ratio is notably lower at 0.79, suggesting that the stock may be undervalued relative to its growth prospects. Additionally, the EV to EBITDA ratio of 37.22 further supports this valuation perspective.
In comparison with peers, Fortinet's P/E ratio of 32.08 is significantly lower than that of International Business Machines Corp., which has a P/E of 82.85, indicating that Fortinet may offer better value. Cisco Systems, Inc. also presents a fair valuation with a P/E of 23.85, reinforcing the notion that Fortinet is positioned attractively in its industry. Despite a year-to-date return of -11.69% compared to the S&P 500's 13.30%, Fortinet's five-year return of 217.17% highlights its potential for long-term growth.