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Is this Large Market Cap Stock target price reasonable for Fortinet Inc. (NASDAQ:FTNT)?

The company in question is, Fortinet Inc. (NASDAQ:FTNT) currently with a stock price of 30.65 (-1.73% today). The market cap for Fortinet Inc. is 5493.81, and is in the sector Technology, and Application Software industry. The target price for Fortinet Inc. is 40.56. Currently Fortinet Inc. is trading with a P/E of 891.14, and a forward P/E of 35.48. Average volume for Fortinet Inc. is 1957.21 and so far today it is 1867896.

Performance in the last year for Fortinet Inc. has been -25.51%. For EPS growth, Fortinet Inc. has seen a growth of -69.70%, and is looking to grow in the next year to 25.57%. More long term stats show that EPS growth has been -29.70% over the last five years and could be 21.40% for the next five years. Fortinet Inc. has seen sales growth quarter over quarter at 29.90%, with EPS growth quarter over quarter at -279.70%. The 20-day simple moving average is -12.95%, with the 200-day simple moving average coming to -3.72%.

Since the IPO date for Fortinet Inc. on the 11/18/2009, Fortinet Inc. has seen performance year to date to be 0.06%. With Fortinet Inc. trading at 30.65, the dividend yield is *TBA, and the EPS is 0.04.

So could Fortinet Inc., be undervalued? Well as said before P/E is 891.14. The PEG is 41.64, P/S is 4.77 and the P/B is at 6.66. The P/cash is 5.58, with P/free cash flow at 23.27.

Fortinet Inc. ability to deal with debt shows that the current ratio is 1.8, and the quick ratio is 1.7. This is with long term debt/equity at 0, and total debt/equity at 0.

In terms of margins, Fortinet Inc. has a gross margin of 72.60%, an operating margin of 0.30% and a profit margin of 0.60%.Payout ratio for Fortinet Inc. is 0.00%. Return on assets come to 0.40% with return on investment coming to 0.80%.

Insider ownership for Fortinet Inc., is at 11.20% and institutional ownership comes to 73.00%. Outstanding shares are at 176.14. While shares float is 145.13. The float short is currently 3.00%, and short ratio is 2.22.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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