FTNTCAUTIOUS

FTNT EV/EBITDA Analysis

43.2x

Updated 153h ago·SEC filings & market data

Key Takeaway

FTNT's current EV/EBITDA of 45.4x means that the enterprise value (total company market value including debt) is 45.4 times its earnings before interest, taxes, depreciation, and amortization — a very high multiple, implying investors are paying a large premium for each dollar of cash earnings.

Sector Performance

92th percentile

FTNT

43.2x

Sector Median

13.6x

Sector Avg

-30.9x

Prior Period

45.4x(Jul 2026)

↑ Improving

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Deep Analysis

This ratio sits well above the sector median of 13.7x, placing FTNT in the 93rd percentile among its sector peers, meaning only 7% of comparable companies trade at a higher multiple. The metric shows a stable trend over the last 8 quarters, with a quarter-over-quarter decline of -4.9% from the prior quarter's 47.7x; year-over-year change is not available. The combination of an extremely high valuation level and a stable-to-slightly-declining trend suggests limited upside from multiple expansion and heightened downside risk if earnings falter or peer compression occurs. This directly supports the overall CAUTIOUS verdict, as the elevated EV/EBITDA leaves little margin for error and indicates the stock is priced for perfection relative to the industry.

Frequently Asked Questions

What does the EV/EBITDA tell investors about FTNT?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

Who are FTNT's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: SMTC (76.6x), SHOP (80.2x), OKTA (83.5x), TEAM (101.4x), STEM (102.7x).

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Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.