What is F5, Inc. (FFIV) DCF Fair Value and Intrinsic Value in 2026?

F5, Inc. (FFIV) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is F5, Inc.'s historical Return on Invested Capital (ROIC) and Moat Rating?

F5, Inc. operates in the Technology sector (Software - Infrastructure) with an economic moat rating of NARROW. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is F5, Inc.'s financial health rating and Piotroski F-Score?

F5, Inc.'s balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor F5, Inc. (FFIV) for quarterly SEC filing thesis breaks?

LocalAlpha audits F5, Inc.'s 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksFFIV

FFIV

F5, Inc.Technology / Software - InfrastructureINTACT

F5, Inc. provides multicloud application security and delivery solutions in the United States, Europe, the Middle East, Africa, and the Asia Pacific region. The company's distributed cloud services enable its customers to deploy, secure, and operate applications in any architecture, from on-premises to the public cloud. It also offers unified, security, networking, and application management solutions, such as web app and API protection; multi-cloud networking; application delivery and deployment; domain name system; content delivery network; and application deployment and orchestration. In addition, the company provides application security and delivery products, including NGINX Plus; NGINX One Console; NGINX Ingress Controller; WAF for NGINX; BIG-IP Packaged Software; and BIG-IP Systems. Further, it provides a range of professional services, including maintenance, consulting, training, and other technical support services. The company sells its products to large enterprise businesses, public sector institutions, governments, and service providers through distributors, value-added resellers, managed service providers, systems integrators, and other indirect channel partners. It has partnerships with public cloud providers, such as Amazon Web Services, Microsoft Azure, and Google Cloud Platform. The company was formerly known as F5 Networks, Inc. and changed its name to F5, Inc. in November 2021. F5, Inc. was incorporated in 1996 and is headquartered in Seattle, Washington.

Share Price

$411.71

52W: $223.76 - $435

DCF Fair Value

$346.23

-18.9% Premium

Thesis Hub

P/E (TTM)

32.8x

ROIC

18.5%

Operating Margin

24.6%

FCF Yield

3.1%

Debt / Equity

0.07x

Piotroski Score

9/9

Altman Z-Score

3.11

Market Cap

$23.3B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($346.23)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$346.23

MOS Buy Target (-25%)

$259.67

Valuation Overlays: DCF Fair Value ($346.23) 25% MOS Buy Target ($259.67) Revised Graham ($310.61) Graham Number ($138.42)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$411.71

DCF Fair Value

$342.60

-20.2% Premium

Starting Free Cash Flow ($M)$717M

$100M$717M (Reported)$50,000M

Stage 1 Growth (Years 1-5)12.3%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)-$1,300M (Net Cash)

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$7.6B

PV of Terminal Value

$10.6B

Implied Enterprise Value

$18.2B

Implied Equity Value

$19.5B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$805	$904	$1,015	$1,140	$1,281	$1,338	$1,398	$1,461	$1,527	$1,596
Present Value (PV)	$739	$761	$784	$808	$832	$798	$765	$733	$703	$674

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-197.4% Premium

$138.42

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $12.55BVPS: $67.85

Revised Graham Formula-32.5% Premium

$310.61

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings2.9% Yield

$11.95 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $0.7BYield: 2.9%

Reverse DCF: Market Growth Expectation

FAIR BARRIER

12.2% CAGR (Next 10 Yrs)

At the current price of $411.71, the market is assuming the business will compound Free Cash Flow at 12.2% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

ℹ Fair expectations: Requires steady execution.

Autonomous Thesis Underwriting

Surveil FFIV with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for F5, Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 24.6% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: F5, Inc. (FFIV) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for F5, Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, F5, Inc. has an estimated DCF intrinsic fair value of $346.23 per share compared to its current market price of $411.71. This represents an estimated 18.9% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $138.42.