FortinetXSWX:FTNT 91 Return-on-Tangible-Equity is 279.82% as of Mar. 2026, which is 466% above its 10-year median of 49.46. GuruFocus rates XSWX:FTNT with a GF Score™ of 91/100 and a GF Value™ of CHF80.86. The stock has 5 warning signs investors should review. Among 2,470 Software companies, Fortinet ranks better than 89.64% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Fortinet's annualized net income for the quarter that ended in Mar. 2026 was CHF2,138 Mil. Fortinet's average shareholder tangible equity for the quarter that ended in Mar. 2026 was CHF764 Mil. Therefore, Fortinet's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 279.82%.
The historical rank and industry rank for Fortinet's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:FTNT'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.21 Med: 49.46 Max: 1345.84
Current: 188.72
During the past 13 years, Fortinet's highest Return-on-Tangible-Equity was 1,345.84%. The lowest was 4.21%. And the median was 49.46%.
XSWX:FTNT's Return-on-Tangible-Equity is ranked better than 89.64% of 2470
companies
in the Software industry
Industry Median: 8.77
vs XSWX:FTNT: 188.72
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Fortinet Return-on-Tangible-Equity Related Terms
Fortinet Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Fortinet's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XSWX:FTNT vs : Return-on-Tangible-Equity Comparison
For the Software - Infrastructure subindustry, Fortinet's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Fortinet Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Fortinet's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Fortinet's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 279.82% mean?
Fortinet (XSWX:FTNT) has a Return-on-Tangible-Equity of 279.82% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Fortinet and its competitors. This is 466% above median its historical median of 49.46. Over the past decade, Fortinet's Return-on-Tangible-Equity has ranged from 4.21 to 1,345.84. According to the industry distribution chart, Fortinet ranks #256 out of 2470 companies in the Software industry, placing it in the top 10.4%.
Is Fortinet's Return-on-Tangible-Equity too high?
Fortinet's current Return-on-Tangible-Equity of 279.82% is 466% above median its 10-year median of 49.46. Over the past 10 years, this metric has ranged from a low of 4.21 to a high of 1,345.84. The Software industry median Return-on-Tangible-Equity is 8.77. Fortinet's value of 279.82% is 3090.6% above this industry median. Based on the distribution chart, Fortinet ranks #256 out of 2470 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Fortinet has a GF Score™ of 91/100, reflecting its overall financial health beyond just this single metric.
How does Fortinet's Return-on-Tangible-Equity compare to ?
According to the Software industry distribution chart, Fortinet ranks #256 out of 2470 companies for Return-on-Tangible-Equity. This places Fortinet in the top 10% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.77. Fortinet's value of 279.82% is 3090.6% above this benchmark. Historically, Fortinet's own Return-on-Tangible-Equity has ranged from 4.21 to 1,345.84 over the past decade. While the company's 10-year median is 49.46 vs. the industry median of 8.77, Fortinet has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Software company?
The median Return-on-Tangible-Equity among Software companies is 8.77, based on 2,470 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Fortinet's current Return-on-Tangible-Equity of 279.82% is 3090.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Fortinet and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fortinet's current Return-on-Tangible-Equity is 279.82%, which is 466% above median its own 10-year median of 49.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fortinet stock overvalued right now?
Fortinet (XSWX:FTNT) has a current Return-on-Tangible-Equity of 279.82%. The stock's GF Value™ is CHF80.86, compared to a current price of CHF127.04 — trading 57.1% above its estimated fair value. The current Return-on-Tangible-Equity is 279.82%, which is 466% above median its 10-year median of 49.46 and 3090.6% above the Software industry median of 8.77. Fortinet's overall GF Score™ is 91/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Fortinet (XSWX:FTNT), the current Return-on-Tangible-Equity is 279.82% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Fortinet (XSWX:FTNT) Overvalued in 2026?
Based on GuruFocus' analysis, Fortinet stock appears to be overvalued.
The current stock price of CHF127.04 is trading 57.1% above its estimated GF Value™ of CHF80.86.
Key valuation signals for XSWX:FTNT:
Return-on-Tangible-Equity: 279.82% (466% above median its 10-year median of 49.46)
GF Value™: CHF80.86 vs. price of CHF127.04 (57.1% above fair value)
Industry Position: 3090.6% above the Software median (#256 of 2470)
No single metric tells the full story. See the XSWX:FTNT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fortinet is a platform-based cybersecurity vendor with product offerings covering network security, cloud security, zero-trust access, and security operations. The firm derives a majority of its revenue through sales of its subscriptions and support-based business. The California-based firm has more than 800,000 customers across the world.
91GF Score
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