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The historical rank and industry rank for Magic Software Enterprises's Cyclically Adjusted PS Ratio or its related term are showing as below:
FRA:MGK'
s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 1.05 Med: 2.23 Max: 4.18
Current: 1.83
During the past years, Magic Software Enterprises's highest Cyclically Adjusted PS Ratio was 4.18. The lowest was 1.05. And the median was 2.23.
FRA:MGK's Cyclically Adjusted PS Ratio is not ranked
in the Software industry.
Industry Median: 1.69
vs FRA:MGK: 1.83
The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.
Magic Software Enterprises's adjusted revenue per share data for the three months ended in Sep. 2025 was €2.805. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is €8.79 for the trailing ten years ended in Sep. 2025.
Shiller PE for Stocks: The True Measure of Stock Valuation
Magic Software Enterprises (FRA:MGK) Cyclically Adjusted PS Ratio Explanation
Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Cyclically Adjusted PS Ratio should give similar results to regular PS Ratio.
Magic Software Enterprises Cyclically Adjusted PS Ratio Related Terms
Magic Software Enterprises Cyclically Adjusted PS Ratio Historical Data
* Premium members only.
The historical data trend for Magic Software Enterprises's Cyclically Adjusted PS Ratio 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.
Magic Software Enterprises Cyclically Adjusted PS Ratio Chart
FRA:MGK vs IBM, ACN, FISV: Cyclically Adjusted PS Ratio Comparison
For the Information Technology Services subindustry, Magic Software Enterprises's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS Ratio 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.
Magic Software Enterprises Cyclically Adjusted PS Ratio vs Software Industry
For the Software industry and Technology sector, Magic Software Enterprises's Cyclically Adjusted PS Ratio distribution charts can be found below:
* The bar in red indicates where Magic Software Enterprises's Cyclically Adjusted PS Ratio falls into.
Magic Software Enterprises Cyclically Adjusted PS Ratio Calculation
Like the Shiller PE Ratio, the Cyclically Adjusted PS Ratio takes the Revenue per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/S calculation. Because it considers this 10-year average, it's often referred to as the CAPS Ratio.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio.
* 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.
Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.
What does a Cyclically Adjusted PS Ratio of 1.83 mean?
Magic Software Enterprises (FRA:MGK) has a Cyclically Adjusted PS Ratio of 1.83 as of Aug. 17, 2026. Cyclically Adjusted PS Ratio is the ratio of share price to a company's inflation-adjusted revenue per share over a 10-year period. View historical data on Magic Software Enterprises and its competitors. This is 18% below median its historical median of 2.23. Over the past decade, Magic Software Enterprises' Cyclically Adjusted PS Ratio has ranged from 1.05 to 4.18.
Is Magic Software Enterprises' Cyclically Adjusted PS Ratio too high?
Magic Software Enterprises' current Cyclically Adjusted PS Ratio of 1.83 is 18% below median its 10-year median of 2.23. Over the past 10 years, this metric has ranged from a low of 1.05 to a high of 4.18. The Software industry median Cyclically Adjusted PS Ratio is 1.69. Magic Software Enterprises' value of 1.83 is 8.3% above this industry median. Overall, Magic Software Enterprises has a GF Score™ of 90/100, reflecting its overall financial health beyond just this single metric.
How does Magic Software Enterprises' Cyclically Adjusted PS Ratio compare to IBM and ACN?
Magic Software Enterprises' Cyclically Adjusted PS Ratio of 1.83 can be compared against companies in the Software industry. The industry median Cyclically Adjusted PS Ratio is 1.69. Magic Software Enterprises' value of 1.83 is 8.3% above this benchmark. Historically, Magic Software Enterprises' own Cyclically Adjusted PS Ratio has ranged from 1.05 to 4.18 over the past decade. While the company's 10-year median is 2.23 vs. the industry median of 1.69, Magic Software Enterprises 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 Cyclically Adjusted PS Ratio for a Software company?
The median Cyclically Adjusted PS Ratio among Software companies is 1.69, based on 1,599 companies in the industry. Companies in the top quartile (top 25%) have a Cyclically Adjusted PS Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cyclically Adjusted PS Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Magic Software Enterprises's current Cyclically Adjusted PS Ratio of 1.83 is 8.3% 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 Cyclically Adjusted PS Ratio mean?
A high Cyclically Adjusted PS Ratio can signal that a stock is expensive relative to its fundamentals. Cyclically Adjusted PS Ratio is the ratio of share price to a company's inflation-adjusted revenue per share over a 10-year period. View historical data on Magic Software Enterprises and its competitors. For the Software industry, the median Cyclically Adjusted PS Ratio is 1.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magic Software Enterprises's current Cyclically Adjusted PS Ratio is 1.83, which is 18% below median its own 10-year median of 2.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Magic Software Enterprises stock overvalued right now?
Magic Software Enterprises (FRA:MGK) has a current Cyclically Adjusted PS Ratio of 1.83. The stock's GF Value™ is €12.26, compared to a current price of €16.10 — trading 31.3% above its estimated fair value. The current Cyclically Adjusted PS Ratio is 1.83, which is 18% below median its 10-year median of 2.23 and 8.3% above the Software industry median of 1.69. Magic Software Enterprises' overall GF Score™ is 90/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cyclically Adjusted PS Ratio calculated?
Cyclically Adjusted PS Ratio is calculated from a company's financial statements. For Magic Software Enterprises (FRA:MGK), the current Cyclically Adjusted PS Ratio is 1.83 as of Aug. 17, 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 Magic Software Enterprises (FRA:MGK) Overvalued in 2026?
Based on GuruFocus' analysis, Magic Software Enterprises stock appears to be overvalued.
The current stock price of €16.10 is trading 31.3% above its estimated GF Value™ of €12.26.
Key valuation signals for FRA:MGK:
Cyclically Adjusted PS Ratio: 1.83 (18% below median its 10-year median of 2.23)
GF Value™: €12.26 vs. price of €16.10 (31.3% above fair value)
No single metric tells the full story. See the FRA:MGK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Magic Software Enterprises Ltd is a software development company. The company's operating segment includes Software Services and IT Professional Services. The company generates maximum revenue from the IT Professional Services segment. IT Professional Services segment offers IT services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, communications services and solutions, as well as supplemental outsourcing services. Geographically, it derives a majority of revenue from the United States and also has a presence in Israel, Europe, Japan, and Other countries.
90GF Score
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Cyclically Adjusted PS Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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