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Formula Systems (1985)FRA:FSY +2.26%67 EV-to-EBITDA is 6.29 as of Jul. 22, 2026, which is 52% below its 10-year median of 13.02. GuruFocus rates FRA:FSY with a GF Score™ of 67/100 and a GF Value™ of €112.68 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,959 Software companies, Formula Systems (1985) ranks better than 70.34% on this metric.
EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, Formula Systems (1985)'s enterprise value is €1,333 Mil.
Formula Systems (1985)'s EBITDA for the trailing twelve months (TTM) ended in Mar. 2026 was €212 Mil. Therefore, Formula Systems (1985)'s EV-to-EBITDA for today is 6.29.
The historical rank and industry rank for Formula Systems (1985)'s EV-to-EBITDA or its related term are showing as below:
FRA:FSY'
s EV-to-EBITDA Range Over the Past 10 Years
Min: 6.06 Med: 13.02 Max: 17.98
Current: 6.57
During the past 13 years, the highest EV-to-EBITDA of Formula Systems (1985) was 17.98. The lowest was 6.06. And the median was 13.02.
FRA:FSY's EV-to-EBITDA is ranked better than 70.34% of 1959
companies
in the Software industry
Industry Median: 10.46
vs FRA:FSY: 6.57
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.
The "classic" EV-to-EBITDA is much better in capturing debt and net cash than the PE Ratio (TTM).
Formula Systems (1985) (FRA:FSY) EV-to-EBITDA Explanation
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Formula Systems (1985)'s PE Ratio (TTM) for today is calculated as:
Formula Systems (1985)'s share price for today is €90.50.
Formula Systems (1985)'s Earnings per Share (Diluted) 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 €33.606.
* 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.
Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).
* 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: EV-to-EBITDA Comparison
For the Information Technology Services subindustry, Formula Systems (1985)'s EV-to-EBITDA, along with its competitors' market caps and EV-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) EV-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Formula Systems (1985)'s EV-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Formula Systems (1985)'s EV-to-EBITDA falls into.
Formula Systems (1985)'s current Enterprise Value is €1,333 Mil.
Formula Systems (1985)'s EBITDA 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-EBITDA of 6.29 as of Jul. 22, 2026. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Formula Systems (1985). This is 52% below median its historical median of 13.02. Over the past decade, Formula Systems (1985)'s EV-to-EBITDA has ranged from 6.06 to 17.98. According to the industry distribution chart, Formula Systems (1985) ranks #581 out of 1959 companies in the Software industry, placing it in the top 29.7%.
Is Formula Systems (1985)'s EV-to-EBITDA too high?
Formula Systems (1985)'s current EV-to-EBITDA of 6.29 is 52% below median its 10-year median of 13.02. Over the past 10 years, this metric has ranged from a low of 6.06 to a high of 17.98. The Software industry median EV-to-EBITDA is 10.46. Formula Systems (1985)'s value of 6.29 is 39.9% below this industry median. Based on the distribution chart, Formula Systems (1985) ranks #581 out of 1959 companies in the Software industry, which is above the industry midpoint. Overall, Formula Systems (1985) has a GF Score™ of 67/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Formula Systems (1985)'s EV-to-EBITDA compare to IBM and ACN?
According to the Software industry distribution chart, Formula Systems (1985) ranks #581 out of 1959 companies for EV-to-EBITDA. This puts Formula Systems (1985) in the upper half of its industry. The industry median EV-to-EBITDA is 10.46. Formula Systems (1985)'s value of 6.29 is 39.9% below this benchmark. Historically, Formula Systems (1985)'s own EV-to-EBITDA has ranged from 6.06 to 17.98 over the past decade. While the company's 10-year median is 13.02 vs. the industry median of 10.46, 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-EBITDA for a Software company?
The median EV-to-EBITDA among Software companies is 10.46, based on 1,959 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formula Systems (1985)'s current EV-to-EBITDA of 6.29 is 39.9% 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-EBITDA mean?
A high EV-to-EBITDA can signal that a stock is expensive relative to its fundamentals. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Formula Systems (1985). For the Software industry, the median EV-to-EBITDA is 10.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formula Systems (1985)'s current EV-to-EBITDA is 6.29, which is 52% below median its own 10-year median of 13.02. 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 €112.68, compared to a current price of €90.50 — trading 19.7% below its estimated fair value. The current EV-to-EBITDA is 6.29, which is 52% below median its 10-year median of 13.02 and 39.9% below the Software industry median of 10.46. Formula Systems (1985)'s overall GF Score™ is 67/100 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-EBITDA calculated?
EV-to-EBITDA is calculated from a company's financial statements. For Formula Systems (1985) (FRA:FSY), the current EV-to-EBITDA is 6.29 as of Jul. 22, 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 €90.50 is trading 19.7% below its estimated GF Value™ of €112.68.
GuruFocus considers Formula Systems (1985) to be Modestly Undervalued.
Key valuation signals for FRA:FSY:
EV-to-EBITDA: 6.29 (52% below median its 10-year median of 13.02)
GF Value™: €112.68 vs. price of €90.50 (19.7% below fair value)
Industry Position: 39.9% below the Software median (#581 of 1959)
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.
67GF Score
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