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FortinetMEX:FTNT +2.62%85 3-Year ROIIC % is 19.32 as of Dec. 2025, which is 17% below its 10-year median of 23.26. GuruFocus rates MEX:FTNT with a GF Score™ of 85/100 and a GF Value™ of MXN1,735.74 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,622 Software companies, Fortinet ranks better than 67.28% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Fortinet's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 19.32%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Fortinet's 3-Year ROIIC % or its related term are showing as below:
MEX:FTNT's 3-Year ROIIC % is ranked better than 67.28% of 2622
companies
in the Software industry
Industry Median: 5.335
vs MEX:FTNT: 19.32
Fortinet (MEX:FTNT) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Fortinet 3-Year ROIIC % Related Terms
Fortinet 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Fortinet's 3-Year ROIIC % 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.
MEX:FTNT vs SNPS, NET, CRWV: 3-Year ROIIC % Comparison
For the Software - Infrastructure subindustry, Fortinet's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Software Industry
For the Software industry and Technology sector, Fortinet's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Fortinet's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Fortinet (MEX:FTNT) has a 3-Year ROIIC % of 19.32 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Fortinet and its competitors. This is 17% below median its historical median of 23.26. According to the industry distribution chart, Fortinet ranks #858 out of 2622 companies in the Software industry, placing it in the top 32.7%.
Is Fortinet's 3-Year ROIIC % too high?
Fortinet's current 3-Year ROIIC % of 19.32 is 17% below median its 10-year median of 23.26. The Software industry median 3-Year ROIIC % is 5.34. Fortinet's value of 19.32 is 262.1% above this industry median. Based on the distribution chart, Fortinet ranks #858 out of 2622 companies in the Software industry, which is above the industry midpoint. Overall, Fortinet has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Fortinet's 3-Year ROIIC % compare to SNPS and NET?
According to the Software industry distribution chart, Fortinet ranks #858 out of 2622 companies for 3-Year ROIIC %. This puts Fortinet in the upper half of its industry. The industry median 3-Year ROIIC % is 5.34. Fortinet's value of 19.32 is 262.1% above this benchmark. While the company's 10-year median is 23.26 vs. the industry median of 5.34, 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 3-Year ROIIC % for a Software company?
The median 3-Year ROIIC % among Software companies is 5.34, based on 2,622 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Fortinet's current 3-Year ROIIC % of 19.32 is 262.1% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Fortinet and its competitors. For the Software industry, the median 3-Year ROIIC % is 5.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fortinet's current 3-Year ROIIC % is 19.32, which is 17% below median its own 10-year median of 23.26. 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?
Based on GuruFocus' analysis, Fortinet (MEX:FTNT) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN1,735.74, compared to a current price of MXN2,900.09 — trading 67.1% above its estimated fair value. The current 3-Year ROIIC % is 19.32, which is 17% below median its 10-year median of 23.26 and 262.1% above the Software industry median of 5.34. Fortinet's overall GF Score™ is 85/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Fortinet (MEX:FTNT), the current 3-Year ROIIC % is 19.32 as of Dec. 2025. 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 (MEX:FTNT) Overvalued in 2026?
Based on GuruFocus' analysis, Fortinet stock appears to be overvalued.
The current stock price of MXN2,900.09 is trading 67.1% above its estimated GF Value™ of MXN1,735.74.
GuruFocus considers Fortinet to be Significantly Overvalued.
Key valuation signals for MEX:FTNT:
3-Year ROIIC %: 19.32 (17% below median its 10-year median of 23.26)
GF Value™: MXN1,735.74 vs. price of MXN2,900.09 (67.1% above fair value)
Industry Position: 262.1% above the Software median (#858 of 2622)
No single metric tells the full story. See the MEX: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.
85GF Score
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