Are Fortinet Inc. (NASDAQ:FTNT) shares too expensive at this price?

As of close of business last night, Fortinet Inc.’s stock clocked out at 48.74, down -2.13% from its previous closing price of $49.80. In other words, the price has decreased by $-1.06 from its previous closing price. On the day, 4041119 shares were traded. FTNT reached its highest trading level at $50.13 during the session, while it also had its lowest trading level at $48.64.

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To gain a deeper understanding of FTNT’s stock, we examine its different ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 22.07 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 35.14. For the most recent quarter (mrq), Quick Ratio is recorded 1.00 and its Current Ratio is at 1.10.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for this company, MKM Partners on September 16, 2022, initiated with a Buy rating and assigned the stock a target price of $70.

On September 15, 2022, Jefferies started tracking the stock assigning a Buy rating and target price of $65.

On September 08, 2022, Cantor Fitzgerald started tracking the stock assigning a Overweight rating and target price of $70.Cantor Fitzgerald initiated its Overweight rating on September 08, 2022, with a $70 target price.

Insider Transactions:

Investing in insider trades can also provide an investor with insight into how management views future stock prices. A recent insider transaction in this stock occurred on Aug 25 when Jensen Keith sold 39,440 shares for $50.57 per share. The transaction valued at 1,994,430 led to the insider holds 4,541 shares of the business.

Jensen Keith sold 6,500 shares of FTNT for $343,778 on Aug 16. The CFO & Chief Accounting Officer now owns 4,541 shares after completing the transaction at $52.89 per share. On Aug 02, another insider, Xie Michael, who serves as the VP, Engineering & CTO of the company, sold 8,267 shares for $60.64 each. As a result, the insider received 501,308 and left with 29,772,120 shares of the company.

Valuation Measures:

Investors should consider key stock statistics when deciding whether to invest or divest. In the wake of the recent closing price, FTNT now has a Market Capitalization of 39.76B and an Enterprise Value of 38.99B. As of this moment, Fortinet’s Price-to-Earnings (P/E) ratio for their current fiscal year is 59.80, and their Forward P/E ratio for the next fiscal year is 37.29. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 2.55. For the stock, the TTM Price-to-Sale (P/S) ratio is 10.15. Its current Enterprise Value per Revenue stands at 10.22 whereas that against EBITDA is 48.53.

Stock Price History:

The Beta on a monthly basis for FTNT is 1.20, which has changed by -21.87% over the last 52 weeks, in comparison to a change of -15.65% over the same period for the S&P500. Over the past 52 weeks, FTNT has reached a high of $74.35, while it has fallen to a 52-week low of $47.37. The 50-Day Moving Average of the stock is 53.83, while the 200-Day Moving Average is calculated to be 59.66.

Shares Statistics:

It appears that FTNT traded 5.34M shares on average per day over the past three months and 5.71M shares per day over the past ten days. A total of 795.40M shares are outstanding, with a floating share count of 640.77M. Insiders hold about 11.90% of the company’s shares, while institutions hold 70.30% stake in the company. Shares short for FTNT as of Aug 30, 2022 were 9.12M with a Short Ratio of 1.71, compared to 10.13M on Jul 28, 2022. Therefore, it implies a Short% of Shares Outstanding of 1.16% and a Short% of Float of 1.42%.

Earnings Estimates

As of right now, 25 analysts gave their recommendation on the stock of the company. On average, analysts expect EPS of $0.27 for the current quarter, with a high estimate of $0.28 and a low estimate of $0.27, while EPS last year was $0.2. The consensus estimate for the next quarter is $0.35, with high estimates of $0.36 and low estimates of $0.33.

Analysts are recommending an EPS of between $1.12 and $1.03 for the fiscal current year, implying an average EPS of $1.05. EPS for the following year is $1.31, with 28 analysts recommending between $1.5 and $1.2.

Revenue Estimates

In the current quarter, 23 analysts expect revenue to total $1.12B. It ranges from a high estimate of $1.14B to a low estimate of $1.12B. As of the current estimate, Fortinet Inc.’s year-ago sales were $811.5M, an estimated increase of 38.40% from the year-ago figure. For the next quarter, 23 analysts are estimating revenue of $1.27B, an increase of 32.10% less than the figure of $38.40% in the same quarter last year. There is a high estimate of $1.29B for the next quarter, whereas the lowest estimate is $1.25B.

A total of 30 analysts have provided revenue estimates for FTNT’s current fiscal year. The highest revenue estimate was $4.41B, while the lowest revenue estimate was $4.36B, resulting in an average revenue estimate of $4.38B. In the same quarter a year ago, actual revenue was $3.34B, up 31.10% from the average estimate. Based on 30 analysts’ estimates, the company’s revenue will be $5.34B in the next fiscal year. The high estimate is $5.78B and the low estimate is $5.08B. The average revenue growth estimate for next year is up 21.80% from the average revenue estimate for this year.