FORTY (Formula Systems (1985)) EBIT: $246 Mil (TTM As of Mar. 2026)


FORTY Formula Systems (1985) Ltd FORTY
73 GF Score
Price $106.50
GF Value $120.11
Valuation Modestly Undervalued
! 4 Warning Signs
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What is Formula Systems (1985) EBIT?

Formula Systems (1985) FORTY 73 EBIT is $246 Mil as of Mar. 2026. GuruFocus rates FORTY with a GF Score™ of 73/100 and a GF Value™ of $120.11 (Modestly Undervalued). The stock has 4 warning signs investors should review.

Formula Systems (1985)'s earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was $82 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was $246 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Formula Systems (1985)'s annualized ROC % for the quarter that ended in Mar. 2026 was 13.11%. Formula Systems (1985)'s annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 167.20%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Formula Systems (1985)'s Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 15.79%.

Formula Systems (1985)  (NAS:FORTY) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Formula Systems (1985)'s annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=328.02 * ( 1 - 19.76% )/( (1940.042 + 2075.423)/ 2 )
=263.203248/2007.7325
=13.11 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=3583.255 - 807.727 - ( 1280.493 - max(0, 1330.331 - 2165.817+1280.493))
=1940.042

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=3638.146 - 680.136 - ( 1182.905 - max(0, 1291.88 - 2174.467+1182.905))
=2075.423

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Formula Systems (1985)'s annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=328.02/( ( (193.076 + max(-183.889, 0)) + (199.295 + max(-48.173, 0)) )/ 2 )
=328.02/( ( 193.076 + 199.295 )/ 2 )
=328.02/196.1855
=167.20 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(774.471 + 30.249 + 44.228) - (807.727 + 157.545 + 67.565)
=-183.889

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(844.559 + 36.304 + 0) - (680.136 + 185.566 + 63.334)
=-48.173

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Formula Systems (1985)'s Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=246.041/1558.216
=15.79 %

* 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.

Formula Systems (1985) EBIT Related Terms

Formula Systems (1985) EBIT Historical Data

* Premium members only.

The historical data trend for Formula Systems (1985)'s EBIT 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.

Formula Systems (1985) EBIT Chart

Formula Systems (1985) Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 202.08 275.14 161.90 187.21 180.47

Formula Systems (1985) Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 49.52 67.89 54.55 41.59 82.01

FORTY vs IBM, ACN, FISV: EBIT Comparison

For the Information Technology Services subindustry, Formula Systems (1985)'s EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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) EV-to-EBIT vs Software Industry

For the Software industry and Technology sector, Formula Systems (1985)'s EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Formula Systems (1985)'s EV-to-EBIT falls into.


FORTY
73GF Score
Formula Systems (1985) Ltd FORTY
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Formula Systems (1985) EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $246 Mil.

* 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.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of $246 Mil mean?
Formula Systems (1985) (FORTY) has a EBIT of $246 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Formula Systems (1985).
Is Formula Systems (1985)'s EBIT too high?
Formula Systems (1985)'s current EBIT is $246 Mil. Overall, Formula Systems (1985) has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Formula Systems (1985)'s EBIT compare to IBM and ACN?
Formula Systems (1985)'s EBIT of $246 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Software company?
A good EBIT depends on the Software industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Formula Systems (1985). Formula Systems (1985)'s current EBIT is $246 Mil. 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) (FORTY) is currently considered Modestly Undervalued. The stock's GF Value™ is $120.11, compared to a current price of $106.50 — trading 11.3% below its estimated fair value. The current EBIT is $246 Mil. Formula Systems (1985)'s overall GF Score™ is 73/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Formula Systems (1985) (FORTY), the current EBIT is $246 Mil 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) (FORTY) Overvalued in 2026?

Based on GuruFocus' analysis, Formula Systems (1985) stock appears to be undervalued. The current stock price of $106.50 is trading 11.3% below its estimated GF Value™ of $120.11. GuruFocus considers Formula Systems (1985) to be Modestly Undervalued.

Key valuation signals for FORTY:

  • EBIT: $246 Mil
  • GF Value™: $120.11 vs. price of $106.50 (11.3% below fair value)
  • GF Score™: 73/100 with 4 warning signs

No single metric tells the full story. See the FORTY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Formula Systems (1985) Business Description

Other Exchanges FORTY:IsraelFSY:Germany
Address Terminal Center, 1 Yahadut Canada Street, Or Yehuda, Tel Aviv, ISR, 6037501
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.
73GF Score

Get the complete analysis for FORTY

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$106.50
Price
$120.11
GF Value