Formula Systems (1985)FORTY 73 EBITDA Margin % is 11.11% as of Mar. 2026, which is 16% below its 10-year median of 13.23. 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. Among 2,818 Software companies, Formula Systems (1985) ranks better than 51.63% on this metric.
Formula Systems (1985) (NAS:FORTY) EBITDA Margin % Explanation
EBITDA Margin % is the ratio of EBITDA divided by net sales or Revenue. It is an performance metric measuring company's operating profitability. EBITDA Margin takes depreciation and amortization, interest expense and tax into account, which makes it easy to compare the relative profitability of companies of different sizes in the same industry.
Formula Systems (1985) EBITDA Margin % Related Terms
Formula Systems (1985) EBITDA Margin % Historical Data
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The historical data trend for Formula Systems (1985)'s EBITDA Margin % 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.
FORTY vs IBM, ACN, FISV: EBITDA Margin % Comparison
For the Information Technology Services subindustry, Formula Systems (1985)'s EBITDA Margin %, along with its competitors' market caps and EBITDA Margin % 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) EBITDA Margin % vs Software Industry
For the Software industry and Technology sector, Formula Systems (1985)'s EBITDA Margin % distribution charts can be found below:
* The bar in red indicates where Formula Systems (1985)'s EBITDA Margin % 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.
Formula Systems (1985) (FORTY) has a EBITDA Margin % of 11.11% as of Mar. 2026. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Formula Systems (1985) and its competitors. This is 16% below median its historical median of 13.23. Over the past decade, Formula Systems (1985)'s EBITDA Margin % has ranged from 7.81 to 15.18. According to the industry distribution chart, Formula Systems (1985) ranks #1363 out of 2818 companies in the Software industry, placing it in the top 48.4%.
Is Formula Systems (1985)'s EBITDA Margin % too high?
Formula Systems (1985)'s current EBITDA Margin % of 11.11% is 16% below median its 10-year median of 13.23. Over the past 10 years, this metric has ranged from a low of 7.81 to a high of 15.18. The Software industry median EBITDA Margin % is 8.07. Formula Systems (1985)'s value of 11.11% is 37.7% above this industry median. Based on the distribution chart, Formula Systems (1985) ranks #1363 out of 2818 companies in the Software industry, which is above the industry midpoint. 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 EBITDA Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Formula Systems (1985) ranks #1363 out of 2818 companies for EBITDA Margin %. This puts Formula Systems (1985) in the upper half of its industry. The industry median EBITDA Margin % is 8.07. Formula Systems (1985)'s value of 11.11% is 37.7% above this benchmark. Historically, Formula Systems (1985)'s own EBITDA Margin % has ranged from 7.81 to 15.18 over the past decade. While the company's 10-year median is 13.23 vs. the industry median of 8.07, 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 EBITDA Margin % for a Software company?
The median EBITDA Margin % among Software companies is 8.07, based on 2,818 companies in the industry. Companies in the top quartile (top 25%) have a EBITDA Margin % significantly above this median, while those in the bottom quartile fall well below. However, EBITDA Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formula Systems (1985)'s current EBITDA Margin % of 11.11% is 37.7% 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 EBITDA Margin % mean?
A high EBITDA Margin % can signal that a stock is expensive relative to its fundamentals. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Formula Systems (1985) and its competitors. For the Software industry, the median EBITDA Margin % is 8.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formula Systems (1985)'s current EBITDA Margin % is 11.11%, which is 16% below median its own 10-year median of 13.23. 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 EBITDA Margin % is 11.11%, which is 16% below median its 10-year median of 13.23 and 37.7% above the Software industry median of 8.07. 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 EBITDA Margin % calculated?
EBITDA Margin % is calculated from a company's financial statements. For Formula Systems (1985) (FORTY), the current EBITDA Margin % is 11.11% 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:
EBITDA Margin %: 11.11% (16% below median its 10-year median of 13.23)
GF Value™: $120.11 vs. price of $106.50 (11.3% below fair value)
Industry Position: 37.7% above the Software median (#1363 of 2818)
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) 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
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EBITDA Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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