Morningstar Report-636d1777e26a17cb57991a7f

Morningstar Equity Analyst Report | Report as of 1 Jul 2023 05:16, UTC | Reporting Currency: USD | Trading Currency: USD
| Exchange: NASDAQ - ALL MARKETS Page 1 of 19
Fortinet Inc FTNT QQQ 30 Jun 2023 21:16, UTC
TM TM
Last Price Fair Value Estimate Price/FVE Market Cap Economic Moat Moat Trend Uncertainty Capital Allocation ESG Risk Rating Assessment1
75.59 USD 68.00 USD 1.11 59.35 USD Bil Wide Positive High Standard ;;;;;
30 Jun 2023 7 Jun 2023 05:00, UTC
30 Jun 2023 22 Jun 2022 05:56, UTC
Price vs. Fair Value
Last Close: 75.59

200 Fair Value: 68.00
22 Jun 2022 05:56, UTC
150 Over Valued

Under Valued
100
50
0
2018 2019 2020 2021 2022 YTD
1.01 1.12 1.17 1.26 0.72 1.11 Price/Fair Value
61.20 51.58 39.13 141.97 -31.98 54.61 Total Return %
Morningstar Rating
Total Return % as of 30 Jun 2023. Last Close as of 30 Jun 2023. Fair Value as of 22 Jun 2022 05:56, UTC.
Contents
Business Description Wide-Moat Fortinet’s Platform Is Meshing Well With Its
Business Strategy & Outlook (12 Dec 2022)
Bulls Say / Bears Say (8 Feb 2023) Customers
Economic Moat (12 Dec 2022)
Fair Value and Profit Drivers (7 Feb 2023)
Business Strategy & Outlook Malik Ahmed Khan, CFA, Analyst, 12 Dec 2022
Risk and Uncertainty (12 Dec 2022)
We see Fortinet at the forefront of the convergence of networking and security. We believe the firm
Capital Allocation (12 Dec 2022)
Analyst Notes Archive stands to materially benefit as secular tailwinds in network security and vendor consolidation increase
Financials Fortinet’s value proposition to its clients. In our view, the firm’s established customer switching costs,
Appendix buttressed by its increasingly potent network effect, will allow Fortinet to continuously gain and expand
Research Methodology for Valuing Companies the number of clients and has already enabled it to build a wide economic moat around its business.
Important Disclosure
The conduct of Morningstar’s analysts is governed by Code of Ethics/Code of The cybersecurity segment continues to increase in threat complexity and intensity. A typical
Conduct Policy, Personal Security Trading Policy (or an equivalent of), and
Investment Research Policy. For information regarding conflicts of interest, please enterprise’s digital footprint has exponentially increased over the years, leading to the creation of new
visit: http://global.morningstar.com/equitydisclosures.
attack vectors that nefarious players can exploit. While the number of attack vectors has increased, so
The primary analyst covering this company does not own its stock.
has the damage from cybersecurity lapses with companies facing punitive regulatory fines along with
The ESG Risk Rating Assessment is a representation of Sustainalytics’ ESG Risk
1
Rating.
reputational and commercial damage.
In this evolving landscape, we see IT security teams looking for platforms that offer more holistic
security coverage versus point solutions that can inadvertently create data silos. This shift toward
consolidation is an opportunity for platform cybersecurity vendors such as Fortinet. By providing a broad
range of cybersecurity solutions under the same platform, Fortinet can alleviate its clients’ toolset
management burden.
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Morningstar Equity Analyst Report | Report as of 1 Jul 2023 05:16, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 2 of 19
TM TM
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Sector Industry While Fortinet’s build-versus-buy mentality has allowed it to expand its footprint in network security, we
a Technology Software - Infrastructure
expect the firm to engage in inorganic methods to bolster its offerings in high-growth verticals such as
Business Description cloud security and security operations. In the long run, we expect these verticals to be key portions of
Fortinet is a platform-based cybersecurity vendor with
an enterprise’s security spending, which Fortinet can tap into.
product offerings covering network security, cloud
security, zero-trust access, and security operations. The
Bulls Say Malik Ahmed Khan, CFA, Analyst, 8 Feb 2023
firm derives a majority of its revenue through sales of its
u Fortinet has strong secular tailwinds as endpoint security, cloud security, and the convergence of
subscriptions and support-based business. The
California-based firm has more than 500,000 customers networking and security are projected to grow rapidly.
across the world. u Fortinet’s strength in the high-margin firewall segment should allow the firm to generate substantial
cash in future.
u The company stands to benefit as clients consolidate vendors and opt for a platform-based
cybersecurity approach.
Bears Say Malik Ahmed Khan, CFA, Analyst, 8 Feb 2023

u Large public cloud vendors often offer their own cybersecurity solutions, which could hamper Fortinet’s
growth opportunities.
u Fortinet’s competitors also utilize a platform approach, thereby entrenching them in their clients’
ecosystems and making them harder to displace.

u There is always a risk that Fortinet may miss out on the next big technology, thereby allowing its
competitors to catch up.
Economic Moat Malik Ahmed Khan, CFA, Analyst, 12 Dec 2022

We assign Fortinet a wide moat rating owing primarily to strong customer switching costs, and second
due to a network effect associated with its offerings. We believe that Fortinet's platform approach to
cybersecurity, by combining key aspects of a business' security needs under one umbrella, has also
enabled the firm to grow its wallet share among existing clients while adding new ones. As a result, we
forecast the firm to generate excess returns on invested capital over the next two decades.
As we look at the broader cybersecurity segment, we believe the complexity and intensity of threats are
ever-increasing. Enterprises continue to adopt software-as-a-service solutions, undergo digital
transformations, and migrate to the cloud, all while employees work remotely. In turn, we see the
number of attack vectors (or entry points for nefarious players) growing rapidly. Similarly, the intensity
of digital threats is also on the rise, with higher costs of a data breach, including punitive fines for any
customer data theft.
In response, IT departments have been adopting more cybersecurity tools, although a consequence has
been the creation of silos in which disparate solutions do not work together effectively. Based on
various industry reports, we estimate that enterprises currently use 60-80 different security solutions but
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Competitors
Fortinet Inc FTNT Cisco Systems Inc CSCO Palo Alto Networks Inc PANW CrowdStrike Holdings Inc Class A CRWD
Fair Value Last Close Fair Value

Last Close
75.59 56.00 255.51 163.00
Uncertainty : Medium Uncertainty : High
Fair Value Last Close Fair Value
Last Close
68.00 51.74 225.00 146.87
Uncertainty : High Uncertainty : High
Economic Moat Wide Wide Wide Narrow

Moat Trend Positive Stable Positive Positive
Currency USD USD USD USD
Fair Value 68.00 22 Jun 2022 05:56, UTC 56.00 16 Feb 2023 03:36, UTC 225.00 24 May 2023 00:46, UTC 163.00 1 Jun 2023 02:09, UTC
1-Star Price 105.40 75.60 348.75 252.65
5-Star Price 40.80 39.20 135.00 97.80
Assessment Fairly Valued 30 Jun 2023 Under Valued 30 Jun 2023 Fairly Valued 30 Jun 2023 Fairly Valued 30 Jun 2023
Morningstar Rating QQQ30 Jun 2023 21:16, UTC QQQQ30 Jun 2023 21:16, UTC QQQ30 Jun 2023 21:16, UTC QQQ30 Jun 2023 21:16, UTC
Analyst Malik Ahmed Khan, Analyst William Kerwin, Analyst Malik Ahmed Khan, Analyst Malik Ahmed Khan, Analyst
Capital Allocation Standard Exemplary Exemplary Exemplary
Price/Fair Value 1.11 0.92 1.14 0.90
Price/Sales 12.77 3.88 12.92 14.14
Price/Book 5,206.40 4.98 63.41 21.70
Price/Earning 62.99 18.54 395.12 —
Dividend Yield — 2.96% — —
Market Cap 59.35 Bil 210.84 Bil 78.15 Bil 34.83 Bil
52-Week Range 42.61—76.27 38.61—52.56 132.22—256.83 92.25—205.73
Investment Style Large Growth Large Value Large Growth Mid Growth
wish to narrow that number down to 15-20 key solutions. Amid this changing landscape, we see an
opportunity for platform-based cybersecurity vendors such as Fortinet to help enterprises consolidate
their digital footprints while maintaining a secure ecosystem.
We view Fortinet as a leader in the convergence of networking and security, in part due to the firm's
strength in network firewalls and software-defined wide-area networking. Fortinet has also begun
strengthening its network security platform with an extension including cloud security, security
operations, and zero-trust access. Fortinet's solutions can be broken down into products and services.
The firm's products include its network firewalls along with the security fabric platform consisting of
network, endpoint, and cloud security, among other modules. Fortinet's services revenue primarily
consists of FortiGuard, a threat detection and prevention solution, and FortiCare, a support service for
Fortinet's products. Put together, the firm's products and solutions enable Fortinet to protect key IT
infrastructure within an enterprise and also enable the smooth and secure functioning of its clients'
cybersecurity ecosystems.
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Across our coverage, we see high switching costs for enterprise-focused cybersecurity vendors, such as
Fortinet, that often have an expansive footprint across an enterprise. To uproot such a vendor requires
not only a competitive offering from another vendor, but often retraining staff to use the new platform,
a period of increased vulnerability. Additionally, we believe security-related IT decisions are driven by
security analysts and engineers that focus on performance rather than price, so enterprises are unlikely
to rip out cybersecurity solutions as a source of potential cost-savings. Further, by remaining neutral to
form factor and deployment, Fortinet is able to land customers with varying network security needs. We
have seen the company move upmarket by targeting larger customers that tend to be stickier and have
a higher lifetime value.
Along with high switching costs, we believe a network effect reinforces Fortinet's economic moat.
Cybersecurity, in its essence, is a data problem, and attacks are now too overwhelming to be handled
manually. In turn, vendors have developed AI solutions to automate processes and pick up threats
(especially zero-day attacks that have never been seen before). However, artificial intelligence and ML
solutions are only as good as the data that is fed to them. This need for good-quality data is where we
see entrenched platform vendors, such as Fortinet, having an edge as they have data streaming in their
security solutions from across the enterprise.
By collecting and analyzing this rich data coming into its platforms, a platform vendor such as Fortinet
can uncover threats and new threat signatures that can then be used to update its entire client base's
security situation. As more data comes in, Fortinet's platforms become better at detecting and
mitigating cyberthreats. As a result, more customers join Fortinet's platforms due to superior
products—which, in turn, leads to more data, and the flywheel spins faster. We see this network effect
as reinforcing switching costs as well—with customers hesitant to leave Fortinet as it may entail losing
the latest threat updates essential to maintaining secure IT infrastructure.
Fair Value and Profit Drivers Malik Ahmed Khan, CFA, Analyst, 7 Feb 2023
Our fair value estimate is $68 per share, implying a 2023 enterprise value/sales multiple of 9.7 times.
We forecast Fortinet’s revenue growing at a 19% compound annual growth rate over the next five years.
Across the firm’s three verticals, we see massive greenfield opportunities for the firm to take advantage
of and grow its business. Additionally, we think Fortinet’s land-and-expand model will continue to bear
fruit. The firm has shown great success in upselling its existing customers by either offering additional
modules within a platform or additional platforms. In the future, we project continued upselling/cross-
selling activity for the firm.
Fortinet’s gross margins have hovered in the mid-70s over the last few years. However, as the company
grows and software becomes a larger part of its top line, we expect gross margin expansion. We see
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this phenomenon across our coverage as software firms can distribute their costs over an increasing
revenue base, driving the cost of sales down as a fraction of sales. As a result, we are modeling GAAP
gross margins to expand to the low 80s over our 10-year explicit forecast.
Fortinet has spent heavily on research and sales in the past. However, as it scales, we expect these line
items to decrease as a percentage of sales. We model GAAP operating margins to expand to the high
20s over the next decade.
Risk and Uncertainty Malik Ahmed Khan, CFA, Analyst, 12 Dec 2022
We assign Fortinet a High Morningstar Uncertainty Rating due to the firm competing in the ever-shifting
cybersecurity segment.
While we commend Fortinet’s efforts to insulate itself from obsolescence by investing in emerging
technologies and security infrastructures, the cybersecurity segment is known for its rapid pace of
development. With this in mind, large cybersecurity vendors such as Fortinet stand to be disrupted by
smaller upstarts that could outperform Fortinet in key modules across its three verticals. To stay ahead,
Fortinet has to constantly invest in technologies that the firm predicts will be needed. However, an
inaccurate assessment of future customer demand could lead Fortinet to either overpay for an
acquisition or overspend to develop the same technology in-house.
Historically, Fortinet has opted for the build-versus-buy approach with many of its security solutions
developed in-house. This approach is very different than some of Fortinet’s peers who have relied on
inorganic means to acquire key technologies or open particular end markets. Fortinet’s strategy could
potentially slow their advance in certain key markets. At the same time, however, we don’t believe that
Fortinet’s management would stay away from inorganic additions to Fortinet if it felt that not engaging
in buying activity would lead to Fortinet not being able to develop a key cybersecurity competency.
Regarding environmental, social, and governance risks, we do not foresee any material issues. However,
notable potential risks include attracting and retaining talent, which could demand high remuneration
amid a talent shortage in cybersecurity. Also, Fortinet’s solutions are tasked with protecting customers
from cyberattacks, making data privacy and security a key concern.
Capital Allocation Malik Ahmed Khan, CFA, Analyst, 12 Dec 2022

We assign Fortinet a Standard Morningstar Capital Allocation Rating based on its sound balance sheet,
fair investments, and appropriate shareholder distributions.
Chair and CEO Ken Xie founded Fortinet in 2000 with his brother, president and CTO Michael Xie. Ken
Xie previously started NetScreen, which was acquired by Juniper Networks in 2004.
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We think Fortinet’s balance sheet is in good shape. With strong cash and liquid investment reserves
and positive cash flow margins, we are not overly concerned by the firm's use of debt. Further, we think
that the stickiness of the firm's product portfolio reduces downside risk in the event of an economic
downturn.
Fortinet’s investment strategy has focused primarily on developing organic solutions. While the firm has
focused on building solutions in key end markets rather than buying solutions (as its peers have done),
this focus on organic development has led to Fortinet’s transition toward cloud-based security solutions
being slower than some of its peers.
Since Fortinet has been expanding its business, it does not pay its shareholders a dividend and has no
plans to start one soon. We see this strategy as appropriate given the firm’s potential growth prospects
across network security, cloud security, and security operations.
Analyst Notes Archive
Fortinet Earnings: Platform Vendors Nets Another Strong Quarter as Demand Remains Robust Malik
Ahmed Khan, CFA, Analyst, 4 May 2023
We maintain our $68 fair value estimate for wide-moat Fortinet after the firm reported a strong start to
fiscal 2023 with sales and margins exceeding our expectations. Near-term macro headwinds remain,
with broad-based budget scrutiny and spending optimization. However, we believe entrenched
cybersecurity vendors such as Fortinet are better prepared to weather the macro pressures as their
solutions are often must-haves for their clients. We believe that Fortinet, as a platform vendor, also
stands to benefit from increased consolidation as customers rein in sprawling IT toolkits and reduce
their overall number of IT vendors. We believe the breadth of Fortinet’s solutions, coupled with secular
tailwinds such as increased spend on cybersecurity and consolidation of vendors, will allow the firm to
deliver shareholder value in the long run. While we are optimistic on Fortinet’s value proposition over
the long term, we believe the company’s current valuation reflects this optimism and view Fortinet’s
shares as trading in the 3-star range.
Fortinet’s top line clocked in at $1.26 billion, up 32% year over year and ahead of our estimate of $1.175
billion. As in recent quarters, product revenue spearheaded the outperformance with product sales
growing 35% year over year to $501 million. The firm’s billings, a forward-looking metric, also remained
strong, growing 30% year over year to $1.50 billion.
Fortinet’s enterprise penetration also remained potent with the number of $1 million-plus deals growing
38% year over year to 124 for the first quarter. We see increased upmarket penetration as a good sign
for Fortinet as enterprise customers tend to be stickier than their SMB counterparts. Further, because
enterprise customers also have a diverse set of security needs, this upmarket movement can allow
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Fortinet to sell its customers a host of security solutions, thereby entrenching itself into its clients’
ecosystems.
Wide-Moat Fortinet Chalks Off Fiscal 2022 With a Strong Quarter; Shares Fairly Valued, Maintain
FVE Malik Ahmed Khan, CFA, Analyst, 8 Feb 2023
We are maintaining our $68 fair value estimate for wide-moat Fortinet after the firm reported strong
financial results to close out fiscal 2022. We continue to have a positive outlook on Fortinet’s ability to
consistently grow its top line as customers increasingly seek platform-based cybersecurity solutions. By
offering clients a gamut of security solutions, Fortinet is able to develop strong customer switching costs
as every incremental security solution reduces a customer’s likelihood of churn. We believe that this
strategy, buoyed by secular tailwinds within the cybersecurity space, will allow Fortinet to deliver
shareholder value in the long run. With shares up more than 10% after hours, we believe the market
has calibrated its valuation to reflect the firm’s strong fundamentals and Fortinet shares are now trading
in the 3-star range.
Fortinet’s top line clocked in at $1.283 billion, up 33% year over year and slightly shy of our estimate.
Driving the strong sales number was product revenue, which grew 43% year over year, ahead of our
prior forecast. Fortinet’s billings for the quarter came in at $1.72 billion, up 32% year over year. Driving
some of that billings growth was a 48% year-over-year increase in the number of $1-million-plus deals,
which stood at 181 for the quarter. We see the increased enterprise penetration for Fortinet as a good
sign as enterprise customers tend to be stickier and have higher customer lifetime values. We see this
upmarket trajectory as also emblematic of strengthening switching costs for the firm.
On the profitability front, Fortinet’s adjusted operating margins came in at 32.5% for the quarter,
expanding 430 basis points sequentially and 400 basis points year over year. Adjusted EPS for the
December quarter was $0.44 per share, $0.04 ahead of the high end of management’s prior guidance.
Fortinet Is Casting a Wide Cybersecurity Net Spanning Multiple Segments; Maintain $68 FVE Malik
Ahmed Khan, CFA, Analyst, 12 Dec 2022
We are maintaining our $68 fair value estimate, wide economic moat and positive moat trend ratings,
High Morningstar Uncertainty Rating, and Standard Morningstar Capital Allocation Rating for Fortinet.
We continue to have confidence that its investments that span key cybersecurity end markets will allow
the company to generate strong shareholder returns over the long term.
We see Fortinet at the forefront of the convergence of networking and security. We believe the firm
stands to materially benefit as secular tailwinds in network security and vendor consolidation increase
its value proposition to its clients. In our view, its established customer switching costs, buttressed by
its increasingly potent network effect, will allow Fortinet to continuously gain clients and increase sales
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from existing clients and have already enabled it to build a wide economic moat around its business.
The cybersecurity segment continues to increase in threat complexity and intensity. A typical
enterprise’s digital footprint has exponentially increased over the years, leading to the creation of new
attack vectors that nefarious players can exploit. With the number of attack vectors that has increased,
as has the damage from cybersecurity lapses, companies are facing punitive regulatory fines along with
reputational and commercial damage.
In this evolving landscape, we see IT security teams looking for platforms that offer more holistic
security coverage versus point solutions that can inadvertently create data silos. This shift toward
consolidation is an opportunity for platform cybersecurity vendors such as Fortinet. By providing a broad
range of cybersecurity solutions under the same platform, Fortinet can alleviate its clients’ tool set
management burden.
Fortinet Tops Expectations in Tough Macroeconomic Environment; Maintain FVE; Shares

Undervalued Malik Ahmed Khan, CFA, Analyst, 3 Nov 2022
We are maintaining our $68 fair value estimate for Fortinet after the company reported third-quarter
financial results that topped our estimates on both the top and bottom lines. While this outperformance
is commendable, we remain cognizant of the risks the firm faces, including elongated sales cycles amid
a turbulent macroeconomic environment. We believe that Fortinet’s wide economic moat will allow it to
navigate the near-term headwinds while continuing to benefit from secular trends such as vendor
consolidation in cybersecurity. The shares were down more than 10% after hours after falling almost 6%
during trading. We view Fortinet shares to be moderately undervalued, with the recent selloff providing
long-term investors with a good entry point.
Fortinet’s third-quarter sales clocked in at $1.15 billion, up 33% year over year and marginally above the
high end of management’s prior guidance. Product sales were the primary driver behind the top-line
growth, expanding 39% year over year. We ascribe this growth to the firm being able to ship out more
products as supply chain-related bottlenecks showed signs of easing this quarter. We expect a
drawdown of the firm’s backlog in the next few quarters to keep the product revenue numbers strong.
Fortinet also saw strong growth in software-defined wide-area networking and operational technology,
which combined to account for 25% of total bookings. Bookings for SD-WAN and OT grew over 45% and
75% year over year, respectively.
Fortinet’s adjusted operating margin was 28% for the quarter, expanding 350 basis points sequentially
and 250 basis points year over year. Adjusted EPS for the September quarter came in at $0.33, $0.05
ahead of the high end of management’s prior guidance.
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Fortinet's Demand Remains Elevated but Is Inhibited by Supply Chain Constraints; Maintaining $68
FVE Brian Colello, CPA, Sector Director, 4 Aug 2022
Fortinet reported second-quarter results that were slightly above FactSet consensus estimates on both
the top and bottom lines. Outlook for the fiscal year was unchanged from previous guidance because of
macroeconomic uncertainty, particularly due to supply chain constraints in Fortinet’s case. We are
maintaining our $68 fair value estimate (reflecting June’s 5-for-1 stock split) for wide-moat Fortinet and
view shares as undervalued after the stock took a large hit in after-hours trading based on
disappointment in maintaining its full-year outlook. Fortinet is still enjoying the convergence of security
and network technology as indicated by heightened billings and bookings but faces the continued
uncertainty from supply chain constraints that limit Fortinet’s ability to reduce backlog and weigh on
margins.
Revenue for the second quarter was $1.03 billion, up 8% sequentially, up 29% year over year, and
slightly above the midpoint of guidance of $1.02 billion. Revenue was driven by products increasing by
34% and services expanding 25%, both on a year-over-year basis. There is clear demand for Fortinet’s
innovation in cybersecurity, exemplified by billings growth of 36% year over year along with growth in
software-defined wide-area networking, or SD-WAN, and operational technology, or OT, which
combined to account for 25% of quarterly revenue growth. Bookings for SD-WAN and OT grew over 60%
and 70% year over year, respectively. Fortinet continues to innovate its product offerings, announcing
the FortiGate 4800F, a compact firewall for hyperscale data centers and 5G networks that should find
success amongst larger customers. We are also encouraged by the larger deals that Fortinet is winning.
Deals of over $1 million grew by 54% year over year to 122 and deals over $500,000 grew 54% year over
year to 312. This follows the trend of Fortinet’s ability to move upstream and win business in the high-
end enterprise space.
Seize the Cybersecurity Selloff as Our Industry- and Company-Specific Theses Remain Intact Mark
Cash, Senior Equity Analyst, 13 May 2022
We are reiterating our fair value estimates for wide-moat network security vendors Check Point
Software Technologies at $140, Fortinet at $340, and Palo Alto Networks at $585 after these more-
established firms fell about 20% over the last month. We are also reaffirming our fair value estimates for
narrow-moat cloud-based security firms CrowdStrike Holdings at $225, Okta at $280, and Zscaler at
$265 after these higher-growth firms retracted by almost 40% over the last month. Our top pick is Okta,
but all are trading at attractive valuations, albeit with different growth profiles.
We think the dramatic selloff of cybersecurity companies over the last few weeks has created solid
buying opportunities across our coverage. High-quality vendors have developed moats with
consequential customer switching costs and network effects that make them essential to organizations'
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operations. We believe these companies have low risk of customer or spending attrition, robust growth
trajectories, and strongly expanding cash flow generation capabilities. However, they are being pulled
down due to a broad-based flight from riskier, high-growth firms because of macro uncertainties and
rising interest rates. In our view, this recent selling pressure is dislodged from the long-term share
appreciation potential as demand drivers, and our industry- and company-specific theses remain intact.
Cybersecurity is not a winner-take-all market, and we see various options to capitalize on the selloff.
Organizations take a layered approach in fending off the heightened threat environment that has made
proper security a top priority. The disruption and costs associated with breaches, data privacy laws and
regulations, and adhering to best practices in a cloud-first world are propelling strong spending
tailwinds. We think the vendors with leading platforms that alleviate security complexity can land
customers with core products, expand spending with additional subscriptions, and be durable winners.
K
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Competitors Price vs. Fair Value
Cisco Systems Inc CSCO
Fair Value: 56.00

16 Feb 2023 03:36, UTC
200
Last Close: 51.74
150 Over Valued
Under Valued
100
50
0
2018 2019 2020 2021 2022 YTD
0.94 1.00 0.93 1.17 0.88 0.92 Price/Fair Value
15.61 13.87 -3.71 44.89 -22.44 10.22 Total Return %
Morningstar Rating
Total Return % as of 30 Jun 2023. Last Close as of 30 Jun 2023. Fair Value as of 16 Feb 2023 03:36, UTC.
Palo Alto Networks Inc PANW
Last Close: 255.51

400 Fair Value: 225.00
24 May 2023 00:46, UTC
300 Over Valued

Under Valued
200
100
0
2018 2019 2020 2021 2022 YTD
0.87 0.76 1.03 0.95 0.70 1.14 Price/Fair Value
29.95 22.78 53.68 56.66 -24.81 83.11 Total Return %
Morningstar Rating
Total Return % as of 30 Jun 2023. Last Close as of 30 Jun 2023. Fair Value as of 24 May 2023 00:46, UTC.
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CrowdStrike Holdings Inc Class A CRWD
Fair Value: 163.00

1 Jun 2023 02:09, UTC
400
Last Close: 146.87
300 Over Valued
Under Valued
200
100
0
2018 2019 2020 2021 2022 YTD
— — 1.31 1.02 0.67 0.90 Price/Fair Value
— — 324.74 -3.34 -48.58 39.49 Total Return %
Morningstar Rating
Total Return % as of 30 Jun 2023. Last Close as of 30 Jun 2023. Fair Value as of 1 Jun 2023 02:09, UTC.
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Morningstar Historical Summary

Financials as of 31 Mar 2023
Fiscal Year, ends 31 Dec 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 YTD TTM
Revenue (USD Mil) 615 770 1,009 1,275 1,495 1,805 2,163 2,594 3,342 4,417 1,262 4,725
Revenue Growth % 15.3 25.2 31.0 26.4 17.2 20.7 19.9 19.9 28.8 32.2 32.2 31.7
EBITDA (USD Mil) 88 81 54 95 166 290 448 611 728 1,078 324 1,233
EBITDA Margin % 14.3 10.6 5.4 7.5 11.1 16.1 20.7 23.5 21.8 24.4 25.6 26.1
Operating Income (USD Mil) 72 59 22 47 110 234 351 492 646 965 272 1,087
Operating Margin % 11.7 7.7 2.2 3.7 7.4 13.0 16.2 19.0 19.3 21.9 21.6 23.0
Net Income (USD Mil) 44.27 25.34 7.99 32.20 31.40 334.90 331.70 488.50 606.80 857.30 247.70 966.60
Net Margin % 7.2 3.3 0.8 2.5 2.1 18.6 15.3 18.8 18.2 19.4 19.6 20.5
Diluted Shares Outstanding (Mil) 841 846 881 882 891 871 875 838 835 805 793 798
Diluted Earnings Per Share (USD) 0.05 0.03 0.01 0.04 0.04 0.38 0.38 0.58 0.73 1.06 0.31 1.20
Dividends Per Share (USD) — — — — — — — — — — — —
Valuation as of 30 Jun 2023

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Recent Qtr TTM
Price/Sales 5.4 7.1 5.8 4.4 5.4 7.2 9.1 10.3 19.2 9.7 12.8 12.8
Price/Earnings 59.9 169.5 312.5 1,000.0 90.9 101.0 47.2 55.6 108.7 54.1 62.9 62.9
Price/Cash Flow 21.2 24.9 21.8 16.9 14.5 19.9 23.4 25.8 41.8 25.4 30.0 30.0
Dividend Yield % — — — — — — — — — — — —
Price/Book 5.2 7.9 6.7 6.3 8.1 13.4 15.3 33.9 52.1 -60.2 5,000.0 5,000.0
EV/EBITDA 29.3 54.8 82.1 44.0 38.1 35.6 36.6 36.8 77.1 34.7 0.0 0.0
Operating Performance / Profitability as of 31 Mar 2023
Fiscal Year, ends 31 Dec 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 YTD TTM
ROA % 4.1 2.0 0.5 1.6 1.4 12.6 9.5 12.3 12.2 14.1 3.8 15.5
ROE % 8.1 4.0 1.1 4.0 4.4 41.9 28.2 44.4 74.1 342 — 843.8
ROIC % 7.4 3.5 0.7 3.4 3.3 39.5 25.1 43.0 34.1 69.2 — 86.0
Asset Turnover 0.6 0.6 0.6 0.6 0.7 0.7 0.6 0.7 0.7 0.7 0.2 0.8
Financial Leverage
Fiscal Year, ends 31 Dec 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Recent Qtr TTM
Debt/Capital % — — — — — — — — 55.8 — 98.9 —
Equity/Assets % 50.1 47.4 42.2 39.1 26.1 32.8 34.6 21.2 13.2 — 0.2 —
Total Debt/EBITDA — — — — — — — — 1.4 — 3.1 —
EBITDA/Interest Expense — — — — — — — — 48.8 59.9 64.7 66.6
Morningstar Analyst Historical/Forecast Summary as of 04 May 2023

Financials Estimates Forward Valuation Estimates
2021 2022 2023 2024 2025
Fiscal Year, ends 12-31-2022 2021 2022 2023 2024 2025
Price/Sales 17.4 8.6 10.8 8.8 7.4
Revenue (USD Mil) 3,342 4,417 5,506 6,742 8,055 Price/Earnings 449.3 41.1 48.5 39.0 32.7
Revenue Growth % 28.8 32.2 24.6 22.4 19.5 Price/Cash Flow 48.4 26.4 27.3 24.3 20.5
EBITDA (USD Mil) 730 1,069 1,388 1,794 2,214 Dividend Yield % — — — — —
EBITDA Margin % 21.9 24.2 25.2 26.6 27.5 Price/Book 382.3 -139.7 43.9 18.3 12.2
EV/EBITDA 76.8 35.0 41.4 32.0 26.0
Operating Income (USD Mil) 646 965 1,211 1,546 1,900
Operating Margin % 19.3 21.9 22.0 22.9 23.6
Net Income (USD Mil) 666 962 1,244 1,556 1,859
Net Margin % 19.9 21.8 22.6 23.1 23.1
Diluted Shares Outstanding (Mil) 836 805 795 802 805
Diluted Earnings Per Share(USD) 0.80 1.19 1.56 1.94 2.31
Dividends Per Share(USD) 0.00 0.00 0.00 0.00 0.00
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Appendix
Historical Morningstar Rating
Fortinet Inc FTNT 30 Jun 2023 21:16, UTC
Dec 2023 Nov 2023 Oct 2023 Sep 2023 Aug 2023 Jul 2023 Jun 2023 May 2023 Apr 2023 Mar 2023 Feb 2023 Jan 2023
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Cisco Systems Inc CSCO 30 Jun 2023 21:16, UTC
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Palo Alto Networks Inc PANW 30 Jun 2023 21:16, UTC
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CrowdStrike Holdings Inc Class A CRWD 30 Jun 2023 21:16, UTC
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Research Methodology for Valuing Companies
Overview timate of a firm’s cost of capital, or weighted average In this stage, which can last five to 10 years, analysts
At the heart of our valuation system is a detailed projec- cost of capital (or WACC). Without a moat, profits are make full financial statement forecasts, including items
tion of a company’s future cash flows, resulting from our more susceptible to competition. We have identified five such as revenue, profit margins, tax rates, changes in
analysts’ research. Analysts create custom industry and sources of economic moats: intangible assets, switching workingcapital accounts, and capital spending. Based on
company assumptions to feed income statement, balance costs, network effect, cost advantage, and efficient scale. these projections, we calculate earnings before interest,
sheet, and capital investment assumptions into our glob- after taxes (EBI) and the net new investment (NNI) to de-
ally standardized, proprietary discounted cash flow, or Companies with a narrow moat are those we believe are rive our annual free cash flow forecast.
DCF, modeling templates. We use scenario analysis, inde- more likely than not to achieve normalized excess returns
for at least the next 10 years. Wide-moat companies are Stage II: Fade
pth competitive advantage analysis, and a variety of other
those in which we have very high confidence that excess The second stage of our model is the period it will take
analytical tools to augment this process. Moreover, we
returns will remain for 10 years, with excess returns more the company’s return on new invested capital—the re-
think analyzing valuation through discounted cash flows
likely than not to remain for at least 20 years. The longer turn on capital of the next dollar invested (“RONIC”)—to
presents a better lens for viewing cyclical companies,
a firm generates economic profits, the higher its intrinsic decline (or rise) to its cost of capital. During the Stage II
high-growth firms, businesses with finite lives (e.g.,
value. We believe low-quality, no-moat companies will period, we use a formula to approximate cash flows in
mines), or companies expected to generate negative
see their normalized returns gravitate toward the firm’s lieu of explicitly modeling the income statement, balance
earnings over the next few years. That said, we don’t dis-
cost of capital more quickly than companies with moats. sheet, and cash flow statement as we do in Stage I. The
miss multiples altogether but rather use them as support-
length of the second stage depends on the strength of
ing cross-checks for our DCF-based fair value estimates.
When considering a company's moat, we also assess the company’s economic moat. We forecast this period to
We also acknowledge that DCF models offer their own
whether there is a substantial threat of value destruction, last anywhere from one year (for companies with no eco-
challenges (including a potential proliferation of estim-
stemming from risks related to ESG, industry disruption, nomic moat) to 10–15 years or more (for wide-moat com-
ated inputs and the possibility that the method may miss
financial health, or other idiosyncratic issues. In this con- panies). During this period, cash flows are forecast using
shortterm market-price movements), but we believe these
text, a risk is considered potentially value destructive if its four assumptions: an average growth rate for EBI over the
negatives are mitigated by deep analysis and our
occurrence would eliminate a firm’s economic profit on a period, a normalized investment rate, average return on
longterm approach.
cumulative or midcycle basis. If we deem the probability new invested capital (RONIC), and the number of years
of occurrence sufficiently high, we would not characterize until perpetuity, when excess returns cease. The invest-
Morningstar’s equity research group (”we,” “our”) be-
the company as possessing an economic moat. ment rate and return on new invested capital decline un-
lieves that a company’s intrinsic worth results from the
til a perpetuity value is calculated. In the case of firms
future cash flows it can generate. The Morningstar Rating
To assess the sustainability of excess profits, analysts per- that do not earn their cost of capital, we assume marginal
for stocks identifies stocks trading at a discount or premi-
form ongoing assessments of the moat trend. A firm’s ROICs rise to the firm’s cost of capital (usually attribut-
um to their intrinsic worth—or fair value estimate, in
moat trend is positive in cases where we think its sources able to less reinvestment), and we may truncate the
Morningstar terminology. Five-star stocks sell for the
of competitive advantage are growing stronger; stable second stage.
biggest risk adjusted discount to their fair values, where-
as 1-star stocks trade at premiums to their intrinsic worth. where we don’t anticipate changes to competitive ad-
vantages over the next several years; or negative when Stage III: Perpetuity
Four key components drive the Morningstar rating: (1) our we see signs of deterioration. Once a company’s marginal ROIC hits its cost of capital,
assessment of the firm’s economic moat, (2) our estimate we calculate a continuing value, using a standard per-
of the stock’s fair value, (3) our uncertainty around that 2. Estimated Fair Value petuity formula. At perpetuity, we assume that any
fair value estimate and (4) the current market price. This Combining our analysts’ financial forecasts with the growth or decline or investment in the business neither
process ultimately culminates in our singlepoint star rat- firm’s economic moat helps us assess how long returns creates nor destroys value and that any new investment
ing. on invested capital are likely to exceed the firm’s cost of provides a return in line with estimated WACC.
capital. Returns of firms with a wide economic moat rat-
ing are assumed to fade to the perpetuity period over a Because a dollar earned today is worth more than a dollar
1. Economic Moat
longer period of time than the returns of narrow-moat earned tomorrow, we discount our projections of cash
The concept of an economic moat plays a vital role not
firms, and both will fade slower than no-moat firms, in- flows in stages I, II, and III to arrive at a total present
only in our qualitative assessment of a firm’s long-term
creasing our estimate of their intrinsic value. value of expected future cash flows. Because we are
investment potential, but also in the actual calculation of
modeling free cash flow to the firm—representing cash
our fair value estimates. An economic moat is a structural
Our model is divided into three distinct stages: available to provide a return to all capital providers—we
feature that allows a firm to sustain excess profits over a
discount future cash flows using the WACC, which is a
long period of time. We define economic profits as re-
weighted average of the costs of equity, debt, and pre-
turns on invested capital (or ROIC) over and above our es- Stage I: Explicit Forecast
ferred stock (and any other funding sources), using ex-
Morningstar Equity Research Star Rating Methodology pected future proportionate long-term, market-value
weights.
3. Uncertainty Around That Fair Value Estimate

Morningstar’s Uncertainty Rating is designed to capture
the range of potential outcomes for a company’s intrinsic
value. This rating is used to assign the margin of safety
required before investing, which in turn explicitly drives
our stock star rating system. The Uncertainty Rating is
ß
aimed at identifying the confidence we should have in as- Morningstar Equity Research Star Rating Methodology
signing a fair value estimate for a given stock.
Our Uncertainty Rating is meant to take into account any-

thing that can increase the potential dispersion of future
outcomes for the intrinsic value of a company, and any-
thing that can affect our ability to accurately predict
these outcomes. The rating begins with a suggested rat-
ing produced by a quantitative process based on the trail-
ing 12-month standard deviation of daily stock returns.
An analyst overlay is then applied, with analysts using
the suggested rating, historical rating data, and their own
knowledge of the company to inform them as they make
the final Uncertainty Rating decision. Ultimately, the rat-
ing decision rests with the analyst. Analysts take into ac-
count many characteristics when making their final de-
cision, including cyclical factors, operational and financial
factors such as leverage, company-specific events, ESG
risks, and anything else that might increase the potential
dispersion of future outcomes and our ability to estimate
those outcomes.
Our recommended margin of safety—the discount to fair

value demanded before we’d recommend buying or
selling the stock—widens as our uncertainty of the es-
timated value of the equity increases. The more uncertain factors.
we are about the potential dispersion of outcomes, the For more details about our methodology, please go to
greater the discount we require relative to our estimate of https://shareholders.morningstar.com The Morningstar Star Ratings for stocks are defined be-
the value of the firm before we would recommend the low:
purchase of the shares. In addition, the Uncertainty Rat- Morningstar Star Rating for Stocks QQQQQ We believe appreciation beyond a fair risk ad-
ing provides guidance in portfolio construction based on justed return is highly likely over a multiyear time frame.
Once we determine the fair value estimate of a stock, we
risk tolerance. Scenario analysis developed by our analysts indicates
compare it with the stock’s current market price on a
daily basis, and the star rating is automatically re-calcu- that the current market price represents an excessively
Our Uncertainty Ratings are: Low, Medium, High, Very
lated at the market close on every day the market on pessimistic outlook, limiting downside risk and maximiz-
High, and Extreme.
which the stock is listed is open. Our analysts keep close ing upside potential.
tabs on the companies they follow, and, based on thor-
Margin of Safety
ough and ongoing analysis, raise or lower their fair value QQQQ We believe appreciation beyond a fair risk-ad-
Qualitative Analysis
QRating estimates as warranted. justed return is likely.
Uncertainty Ratings QQQQQRating
Low 20% Discount 25% Premium QQQ Indicates our belief that investors are likely to re-
Please note, there is no predefined distribution of stars.
Medium 30% Discount 35% Premium ceive a fair risk-adjusted return (approximately cost of
That is, the percentage of stocks that earn 5 stars can
High 40% Discount 55% Premium equity).
fluctuate daily, so the star ratings, in the aggregate, can
Very High 50% Discount 75% Premium
serve as a gauge of the broader market’s valuation. When
Extreme 75% Discount 300% Premium QQ We believe investors are likely to receive a less than
there are many 5-star stocks, the stock market as a whole
is more undervalued, in our opinion, than when very few fair risk-adjusted return.
Our uncertainty rating is based on the interquartile range,
companies garner our highest rating.
or the middle 50% of potential outcomes, covering the Q Indicates a high probability of undesirable risk-adjus-
25th percentile–75th percentile. This means that when a ted returns from the current market price over a multiyear
We expect that if our base-case assumptions are true the
stock hits 5 stars, we expect there is a 75% chance that time frame, based on our analysis. Scenario analysis by
market price will converge on our fair value estimate over
the intrinsic value of that stock lies above the current our analysts indicates that the market is pricing in an ex-
time generally within three years (although it is im-
market price. Similarly, when a stock hits 1 star, we excessively optimistic outlook, limiting upside potential and
possible to predict the exact time frame in which market
pect there is a 75% chance that the intrinsic value of that leaving the investor exposed to Capital loss.
prices may adjust).
stock lies below the current market price.
Our star ratings are guideposts to a broad audience and Other Definitions
4. Market Price individuals must consider their own specific investment Last Price: Price of the stock as of the close of the mar-
The market prices used in this analysis and noted in the goals, risk tolerance, tax situation, time horizon, income ket of the last trading day before date of the report.
report come from exchange on which the stock is listed needs, and complete investment portfolio, among other
which we believe is a reliable source.
ß
Capital Allocation Rating: Our Capital Allocation (or Sustainalytics analyzes over 1,300 data points to assess a situation or particular needs of any specific recipient. This
Stewardship) Rating represents our assessment of the company’s exposure to and management of ESG risks. In publication is intended to provide information to assist in-
quality of management’s capital allocation, with particu- other words, ESG Risk Ratings measures a company’s un- stitutional investors in making their own investment de-
lar emphasis on the firm’s balance sheet, investments, managed ESG Risks represented as a quantitative score. cisions, not to provide investment advice to any specific
and shareholder distributions. Analysts consider compan- Unmanaged Risk is measured on an open-ended scale investor. Therefore, investments discussed and recom-
ies’ investment strategy and valuation, balance sheet starting at zero (no risk) with lower scores representing mendations made herein may not be suitable for all in-
management, and dividend and share buyback policies. less unmanaged risk and, for 95% of cases, the unman- vestors: recipients must exercise their own independent
Corporate governance factors are only considered if they aged ESG Risk score is below 50. judgment as to the suitability of such investments and re-
are likely to materially impact shareholder value, though commendations in the light of their own investment ob-
either the balance sheet, investment, or shareholder dis- Based on their quantitative scores, companies are jectives, experience, taxation status and financial posi-
tributions. Analysts assign one of three ratings: "Exem- grouped into one of five Risk Categories (negligible, low, tion.
plary", "Standard", or "Poor". Analysts judge Capital Alloc- medium, high, severe). These risk categories are absolute,
ation from an equity holder’s perspective. Ratings are de- meaning that a ‘high risk’ assessment reflects a compar- The information, data, analyses and opinions presented
termined on a forward looking and absolute basis. The able degree of unmanaged ESG risk across all subindus- herein are not warranted to be accurate, correct, com-
Standard rating is most common as most managers will tries covered. plete or timely. Unless otherwise provided in a separate
exhibit neither exceptionally strong nor poor capital alloc- agreement, neither Morningstar, Inc. or the Equity Re-
ation. The ESG Risk Rating Assessment is a visual representa- search Group represents that the report contents meet all
tion of Sustainalytics ESG Risk Categories on a 1 to 5 of the presentation and/or disclosure standards applic-
Capital Allocation (or Stewardship) analysis published pri- scale. Companies with Negligible Risk = 5 Globes, Low able in the jurisdiction the recipient is located.
or to Dec. 9, 2020, was determined using a different pro- Risk = 4, Medium Risk = 3 Globes, High Risk = 2 Globes,
cess. Beyond investment strategy, financial leverage, and Severe Risk = 1 Globe. For more information, please visit Except as otherwise required by law or provided for in a
dividend and share buyback policies, analysts also con- sustainalytics.com/esg-ratings/ separate agreement, the analyst, Morningstar, Inc. and
sidered execution, compensation, related party transac- the Equity Research Group and their officers, directors
tions, and accounting practices in the rating. Ratings should not be used as the sole basis in evaluating and employees shall not be responsible or liable for any
a company or security. Ratings involve unknown risks and trading decisions, damages or other losses resulting from,
Capital Allocation Rating: Our Capital Allocation (or uncertainties which may cause our expectations not to or related to, the information, data, analyses or opinions
Stewardship) Rating represents our assessment of the occur or to differ significantly from what was expected within the report. The Equity Research Group encourages
quality of management’s capital allocation, with particu- and should not be considered an offer or solicitation to recipients recipients of this report to read all relevant is-
lar emphasis on the firm’s balance sheet, investments, buy or sell a security. sue documents (e.g., prospectus) pertaining to the secur-
and shareholder distributions. Analysts consider compan- ity concerned, including without limitation, information
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Corporate governance factors are only considered if they market and other risks and there is no assurance or guar- necessary, to seek the advice of a legal, tax, and/or ac-
are likely to materially impact shareholder value, though antee that the intended investment objectives will be counting professional.
either the balance sheet, investment, or shareholder dis- achieved. Past performance of a security may or may not
tributions. Analysts assign one of three ratings: "Exem- be sustained in future and is no indication of future per- The Report and its contents are not directed to, or inten-
plary", "Standard", or "Poor". Analysts judge Capital Alloc- formance. A security investment return and an investor’s ded for distribution to or use by, any person or entity who
ation from an equity holder’s perspective. Ratings are de- principal value will fluctuate so that, when redeemed, an is a citizen or resident of or located in any locality, state,
termined on a forward looking and absolute basis. The investor’s shares may be worth more or less than their country or other jurisdiction where such distribution, pub-
Standard rating is most common as most managers will original cost. A security’s current investment performance lication, availability or use would be contrary to law or
exhibit neither exceptionally strong nor poor capital alloc- may be lower or higher than the investment performance regulation or which would subject Morningstar, Inc. or its
ation. noted within the report. Morningstar’s Uncertainty Rating affiliates to any registration or licensing requirements in
serves as a useful data point with respect to sensitivity such jurisdiction.
Capital Allocation (or Stewardship) analysis published pri- analysis of the assumptions used in our determining a fair
or to Dec. 9, 2020, was determined using a different pro- value price. Where this report is made available in a language other
cess. Beyond investment strategy, financial leverage, and than English and in the case of inconsistencies between
dividend and share buyback policies, analysts also con- the English and translated versions of the report, the Eng-
sidered execution, compensation, related party transac- General Disclosure lish version will control and supersede any ambiguities
tions, and accounting practices in the rating. associated with any part or section of a report that has
Unless otherwise provided in a separate agreement, re-
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Sustainalytics ESG Risk Rating Assessment:The ESG Morningstar, Inc., or the Equity Research Group guaran-
try in which the Morningstar distributor is based. Unless
Risk Rating Assessment is provided by Sustainalytics; a tees the accuracy of the translations.
stated otherwise, the original distributor of the report is
Morningstar company.
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Sustainalytics’ ESG Risk Ratings measure the degree to tries and/or jurisdictions (“Territories”) by independent
which company’s economic value at risk is driven by en- third parties or independent intermediaries and/or distrib-
This report is for informational purposes only and has no
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regard to the specific investment objectives, financial
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Morningstar Equity Analyst Report | Report as of 1 Jul 2023 05:16, UTC | Reporting Currency: USD | Trading Currency: USD

| Exchange: NASDAQ - ALL MARKETS Page 1 of 19

Fortinet Inc FTNT QQQ 30 Jun 2023 21:16, UTC

Price vs. Fair Value

Last Close: 75.59

150 Over Valued

Fortinet Inc FTNT QQQ 30 Jun 2023 21:16, UTC

Bears Say Malik Ahmed Khan, CFA, Analyst, 8 Feb 2023

ecosystems and making them harder to displace.

competitors to catch up.

Economic Moat Malik Ahmed Khan, CFA, Analyst, 12 Dec 2022

Fortinet Inc FTNT QQQ 30 Jun 2023 21:16, UTC

Fair Value Last Close Fair Value

Economic Moat Wide Wide Wide Narrow

Fortinet Inc FTNT QQQ 30 Jun 2023 21:16, UTC

Fortinet Inc FTNT QQQ 30 Jun 2023 21:16, UTC

Capital Allocation Malik Ahmed Khan, CFA, Analyst, 12 Dec 2022

Fortinet Inc FTNT QQQ 30 Jun 2023 21:16, UTC

Analyst Notes Archive

Fortinet Inc FTNT QQQ 30 Jun 2023 21:16, UTC

Fortinet Inc FTNT QQQ 30 Jun 2023 21:16, UTC

Fortinet Tops Expectations in Tough Macroeconomic Environment; Maintain FVE; Shares

Fortinet Inc FTNT QQQ 30 Jun 2023 21:16, UTC

Fortinet Inc FTNT QQQ 30 Jun 2023 21:16, UTC

Fortinet Inc FTNT QQQ 30 Jun 2023 21:16, UTC

Competitors Price vs. Fair Value

Cisco Systems Inc CSCO

Fair Value: 56.00

Palo Alto Networks Inc PANW

Last Close: 255.51

300 Over Valued

Fortinet Inc FTNT QQQ 30 Jun 2023 21:16, UTC

CrowdStrike Holdings Inc Class A CRWD

Fair Value: 163.00

Fortinet Inc FTNT QQQ 30 Jun 2023 21:16, UTC

Morningstar Historical Summary

Valuation as of 30 Jun 2023

Morningstar Analyst Historical/Forecast Summary as of 04 May 2023

Cisco Systems Inc CSCO 30 Jun 2023 21:16, UTC

Palo Alto Networks Inc PANW 30 Jun 2023 21:16, UTC

CrowdStrike Holdings Inc Class A CRWD 30 Jun 2023 21:16, UTC

Research Methodology for Valuing Companies

3. Uncertainty Around That Fair Value Estimate

Research Methodology for Valuing Companies

Our Uncertainty Rating is meant to take into account any-

Our recommended margin of safety—the discount to fair

Research Methodology for Valuing Companies

Research Methodology for Valuing Companies

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