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Fortinet (FTNT) Expands Its Atos Partnership, Is The Stock 37% Overvalued?

Simply Wall St · 1d ago

Fortinet (FTNT) stock is in focus after Atos shifted their long-running cybersecurity partnership to a global engagement model. The change widens distribution of Fortinet technology and managed services for multinational clients across hybrid and multi-cloud environments.

Recent trading tells a mixed story. Fortinet’s share price has pulled back 11.11% over the past week even after this partnership update. It still carries a 90 day share price return of 8.48% and a 1 year total shareholder return of 102.10%, so momentum over the longer haul remains strong despite short term volatility.

Scan for other cybersecurity and AI-focused peers that could react to the same spending trends driving Fortinet and Atos by reviewing the hand-picked 55 AI infrastructure stocks in this space.

Fortinet now trades slightly above both its analyst target and an estimated intrinsic value, even after the recent pullback. Is that a simple overreaction to short term caution, or a signal the market is right to be wary?

Most Popular Narrative: 37% Overvalued

Fortinet last closed at $171.50 while the most followed narrative, which pegs fair value at $125.56, points to a rich setup. The gap between that estimate and the current quote is exactly what is driving the debate around how much optimism is already priced in.

Fortinet’s current valuation undoubtedly prices in a lot of future perfection, making it an expensive stock by traditional metrics. As of mid-July 2026, the stock trades at a Price-to-Earnings (P/E) ratio roughly 60x, which is a massive premium compared to the broader market and well above its recent 2024 and 2025 levels. Its Price-to-Sales (P/S) ratio tells a similar story, sitting at a lofty 16x to 18x, meaning investors are paying a steep multiple for every dollar of revenue the company brings in. While this premium reflects their explosive growth in AI infrastructure security, a P/E over 60 leaves almost zero room for error if macroeconomic conditions or spending on data centers slow down.

See why 12 investors see Fortinet as 37% overvalued.

Result: Fair Value of $125.56 (OVERVALUED)

Still, the Fortinet story could crack if enterprise security budgets reset lower or if high expectations around AI data center demand cool meaningfully.

Find out about the key risks to this Fortinet narrative.

Next Steps

If this mix of optimism and caution around Fortinet leaves you on the fence, move quickly and check the full picture yourself by starting with the 2 key rewards.

Looking for more Fortinet-sized ideas?

Do not stop with Fortinet. Broaden your watchlist now and give yourself more ways to benefit if different parts of the market move before you do.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.