Buffett Brain · Research note
Score updated 26 Sept 2026 · analysis from 10 Jun 2026
FTNT· Technology
Fortinet
Fortinet's high valuation metrics, combined with its lack of consistent profitability, raise significant concerns about its long-term investment appeal.
Buffett fit
Strong fit
Owner
100
Durability
100
Management
69
Price
1
Score updated 26 Sept 2026 · analysis from 10 Jun 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Technology stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If I owned Fortinet outright, I would focus on maintaining its competitive edge in cybersecurity while managing expenses effectively.
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Looking ahead 10 years, I would want to ensure that Fortinet can sustain its high of 33.92% and maintain its market position against potential technological disruptions.
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Fortinet has reduced its share count by 2.31% over the last 5 years, indicating a commitment to returning value to shareholders.
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Currently, Fortinet's yield is only 2.22%, significantly below my target of 8-10%.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 33.9% is in the top quintile for the technology sector (p80: 11.9%).
- 2 of 80.67% significantly exceeds the sector top-quintile cutoff of 72.1%.
- 3 of 31.1% is well above the 14.7% sector average.
- 4 of $2.23 billion indicates strong cash generation capabilities.
Concerns
5- 1 ratio of 51.8 suggests the market expects very high growth, which may not materialize.
- 2 yield of 2.22% is far below the 8-10% target for attractive investments.
- 3High valuation metrics (EV/ of 47.4) could lead to significant downside if growth slows.
- 4Shareholder returns are modest, with a yield of only 1.3%.
Price history
$181+194.6%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Fortinet generates revenue through sales of cybersecurity hardware and software, with total revenue of $6.8 billion and a net income of $1.85 billion. Its product lines, such as FortiGate and FortiWeb, provide integrated security solutions. The company has a of 80.67%, indicating strong unit economics.
How this analysis has moved
The call has held across 2 reviews.
Sep 27, 2026 → Oct 4, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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