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Formula Systems (1985)FRA:FSY 68 EV-to-EBIT is 6.15 as of Jul. 21, 2026, which is 53% below its 10-year median of 13.17. GuruFocus rates FRA:FSY with a GF Score™ of 68/100 and a GF Value™ of €100.75 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,768 Software companies, Formula Systems (1985) ranks better than 79.75% on this metric.
Formula Systems (1985) (FRA:FSY) EV-to-EBIT Explanation
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Formula Systems (1985)'s Enterprise Value for the quarter that ended in Mar. 2026 was €1,364 Mil.
Formula Systems (1985)'s 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 €212 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.
* 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.
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.
Formula Systems (1985)'s current Enterprise Value is €1,302 Mil.
Formula Systems (1985)'s 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 €212 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.
Formula Systems (1985) (FRA:FSY) has a EV-to-EBIT of 6.15 as of Jul. 21, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Formula Systems (1985) and its competitors. This is 53% below median its historical median of 13.17. Over the past decade, Formula Systems (1985)'s EV-to-EBIT has ranged from 6.05 to 19.83. According to the industry distribution chart, Formula Systems (1985) ranks #358 out of 1768 companies in the Software industry, placing it in the top 20.2%.
Is Formula Systems (1985)'s EV-to-EBIT too high?
Formula Systems (1985)'s current EV-to-EBIT of 6.15 is 53% below median its 10-year median of 13.17. Over the past 10 years, this metric has ranged from a low of 6.05 to a high of 19.83. The Software industry median EV-to-EBIT is 14.27. Formula Systems (1985)'s value of 6.15 is 56.9% below this industry median. Based on the distribution chart, Formula Systems (1985) ranks #358 out of 1768 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Formula Systems (1985) has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Formula Systems (1985)'s EV-to-EBIT compare to IBM and ACN?
According to the Software industry distribution chart, Formula Systems (1985) ranks #358 out of 1768 companies for EV-to-EBIT. This places Formula Systems (1985) in the top 20% of its industry — outperforming the majority of peers. The industry median EV-to-EBIT is 14.27. Formula Systems (1985)'s value of 6.15 is 56.9% below this benchmark. Historically, Formula Systems (1985)'s own EV-to-EBIT has ranged from 6.05 to 19.83 over the past decade. While the company's 10-year median is 13.17 vs. the industry median of 14.27, Formula Systems (1985) has consistently been below 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 EV-to-EBIT for a Software company?
The median EV-to-EBIT among Software companies is 14.27, based on 1,768 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formula Systems (1985)'s current EV-to-EBIT of 6.15 is 56.9% below 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Formula Systems (1985) and its competitors. For the Software industry, the median EV-to-EBIT is 14.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formula Systems (1985)'s current EV-to-EBIT is 6.15, which is 53% below median its own 10-year median of 13.17. 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 €88.50 — trading 12.2% below its estimated fair value. The current EV-to-EBIT is 6.15, which is 53% below median its 10-year median of 13.17 and 56.9% below the Software industry median of 14.27. Formula Systems (1985)'s overall GF Score™ is 68/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Formula Systems (1985) (FRA:FSY), the current EV-to-EBIT is 6.15 as of Jul. 21, 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 €88.50 is trading 12.2% below its estimated GF Value™ of €100.75.
GuruFocus considers Formula Systems (1985) to be Modestly Undervalued.
Key valuation signals for FRA:FSY:
EV-to-EBIT: 6.15 (53% below median its 10-year median of 13.17)
GF Value™: €100.75 vs. price of €88.50 (12.2% below fair value)
Industry Position: 56.9% below the Software median (#358 of 1768)
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.
68GF Score
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