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Formula Systems (1985)FRA:FSY -4.37%70 Debt-to-EBITDA is 2.08 as of Mar. 2026, which is 9% below its 10-year median of 2.28. GuruFocus rates FRA:FSY with a GF Score™ of 70/100 and a GF Value™ of €100.75 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,716 Software companies, Formula Systems (1985) ranks worse than 72.9% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Formula Systems (1985)'s Debt-to-EBITDA or its related term are showing as below:
FRA:FSY'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.78 Med: 2.28 Max: 3.26
Current: 2.77
During the past 13 years, the highest Debt-to-EBITDA Ratio of Formula Systems (1985) was 3.26. The lowest was 1.78. And the median was 2.28.
FRA:FSY's Debt-to-EBITDA is ranked worse than 72.9% of 1716
companies
in the Software industry
Industry Median: 1.08
vs FRA:FSY: 2.77
Formula Systems (1985) (FRA:FSY) Debt-to-EBITDA Explanation
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Formula Systems (1985) Debt-to-EBITDA Related Terms
Formula Systems (1985) Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Formula Systems (1985)'s Debt-to-EBITDA 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.
FRA:FSY vs IBM, ACN, FISV: Debt-to-EBITDA Comparison
For the Information Technology Services subindustry, Formula Systems (1985)'s Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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.
Formula Systems (1985) Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Formula Systems (1985)'s Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Formula Systems (1985)'s Debt-to-EBITDA 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Formula Systems (1985) (FRA:FSY) has a Debt-to-EBITDA of 2.08 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Formula Systems (1985). This is near median its historical median of 2.28. Over the past decade, Formula Systems (1985)'s Debt-to-EBITDA has ranged from 1.78 to 3.26. According to the industry distribution chart, Formula Systems (1985) ranks #1251 out of 1716 companies in the Software industry, placing it in the top 72.9%.
Is Formula Systems (1985)'s Debt-to-EBITDA too high?
Formula Systems (1985)'s current Debt-to-EBITDA of 2.08 is near median its 10-year median of 2.28. Over the past 10 years, this metric has ranged from a low of 1.78 to a high of 3.26. The Software industry median Debt-to-EBITDA is 1.08. Formula Systems (1985)'s value of 2.08 is 92.6% above this industry median. Based on the distribution chart, Formula Systems (1985) ranks #1251 out of 1716 companies in the Software industry, which is below the industry midpoint. Overall, Formula Systems (1985) has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Formula Systems (1985)'s Debt-to-EBITDA compare to IBM and ACN?
According to the Software industry distribution chart, Formula Systems (1985) ranks #1251 out of 1716 companies for Debt-to-EBITDA. This places Formula Systems (1985) in the lower half of its industry. The industry median Debt-to-EBITDA is 1.08. Formula Systems (1985)'s value of 2.08 is 92.6% above this benchmark. Historically, Formula Systems (1985)'s own Debt-to-EBITDA has ranged from 1.78 to 3.26 over the past decade. While the company's 10-year median is 2.28 vs. the industry median of 1.08, Formula Systems (1985) 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 Debt-to-EBITDA for a Software company?
The median Debt-to-EBITDA among Software companies is 1.08, based on 1,716 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formula Systems (1985)'s current Debt-to-EBITDA of 2.08 is 92.6% 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 Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Formula Systems (1985). For the Software industry, the median Debt-to-EBITDA is 1.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formula Systems (1985)'s current Debt-to-EBITDA is 2.08, which is near median its own 10-year median of 2.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Formula Systems (1985) stock overvalued right now?
Based on GuruFocus' analysis, Formula Systems (1985) (FRA:FSY) is currently considered Modestly Undervalued. The stock's GF Value™ is €100.75, compared to a current price of €87.50 — trading 13.2% below its estimated fair value. The current Debt-to-EBITDA is 2.08, which is near median its 10-year median of 2.28 and 92.6% above the Software industry median of 1.08. Formula Systems (1985)'s overall GF Score™ is 70/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Formula Systems (1985) (FRA:FSY), the current Debt-to-EBITDA is 2.08 as of Mar. 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 Formula Systems (1985) (FRA:FSY) Overvalued in 2026?
Based on GuruFocus' analysis, Formula Systems (1985) stock appears to be undervalued.
The current stock price of €87.50 is trading 13.2% below its estimated GF Value™ of €100.75.
GuruFocus considers Formula Systems (1985) to be Modestly Undervalued.
Key valuation signals for FRA:FSY:
Debt-to-EBITDA: 2.08 (near median its 10-year median of 2.28)
GF Value™: €100.75 vs. price of €87.50 (13.2% below fair value)
Industry Position: 92.6% above the Software median (#1251 of 1716)
No single metric tells the full story. See the FRA:FSY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formula Systems (1985) Ltd is an information technology company that is principally engaged through its directly and indirectly held investees in providing software consulting services, selling and marketing computer-based business solutions and hardware products from a wide range of domestic and international manufacturers, as well as developing proprietary software solutions. It delivers solutions in Israel and in numerous countries to customers with complex IT services needs. It designs and implements IT solutions and software systems that improve the productivity of customers' existing IT assets, enable them to effectively manage their operations and reduce their business risks in the face of changing business environments.
70GF Score
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Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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