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Fortinet, Inc. (FTNT) — WACC Analysis

WACC Breakdown

Fortinet, Inc. (FTNT) has a weighted average cost of capital (WACC) of 9.8%. The cost of equity is 9.8%, derived from a beta of 1.31 and a risk-free rate of 4.7%. The after-tax cost of debt is 2.9%. The capital structure is 99.6% equity and 0.4% debt.

Interpretation

A WACC of 9.8% is moderate, reflecting the market's balanced risk assessment of Fortinet, Inc..

Investors can compare FTNT's WACC of 9.8% against industry peers to gauge its relative financing costs. A beta of 1.31 reflects the stock's volatility relative to the broader market.

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VALUATION

FTNT WACC: 9.81% for Fortinet, Inc.

Current inputs imply a 9.83% cost of equity and a 3.62% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Fortinet, Inc. Common Stock (FTNT) WACC Results
Weighted Average Cost of Capital
9.81%
Cost of Equity
9.83%
Risk-Free Rate4.73%
Beta1.31
Market Risk Premium4.23%
Cost of Debt
2.86%
Pre-Tax Cost of Debt3.62%
Tax Rate21.00%
Tax Shield0.76%
Capital Structure
Equity: 99.59%($121.80B)
Debt: 0.41%($496.90M)
Equity Component
9.79%
99.59% × 9.83%
Debt Component
0.01%
0.41% × 2.86%

Fortinet, Inc. (FTNT) WACC in context

Fortinet, Inc. (FTNT) currently screens with an estimated WACC of 9.81%. That blends a 9.83% cost of equity, a 3.62% pre-tax cost of debt, and a 99.59% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What FTNT WACC implies

A 9.81% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates FTNT

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.31 and equity accounts for 99.59% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.