Think of Enterprise Value as the theoretical takeover price. It is more comprehensive than market capitalization (Market Cap), which only includes common equity. Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Formula Systems (1985)'s Enterprise Value is $1,474 Mil.
Formula Systems (1985)'s EBIT for the trailing twelve months (TTM) ended in Mar. 2026 was $246 Mil. Therefore, Formula Systems (1985)'s EV-to-EBIT ratio for today is 5.99.
*** Please note that the current Enterprise Value is calculated using the current market capitalization and the most recently available financial data. If key financial fields—Long-Term Debt & Capital Lease Obligation and Short-Term Debt & Capital Lease Obligation—are recorded as null in the latest reporting period, our data vendor will default to using data from the prior period with valid entries.
Formula Systems (1985) (NAS:FORTY) Enterprise Value Explanation
When an investor buy a company, the investor needs to pay not only the common shares, he/she also needs to pay the shareholders of Preferred Stocks. He also assumes the debt of the company, and receives the cash on the company's balance sheet.
If a company has more cash than debt, the investor actually pays less than the Market Cap because he immediately owns the cash once the transaction goes through.
The market value of Preferred Stock needs to be added to the market value of common stocks in the calculation of Enterprise Value.
For the companies with the same Market Cap, the smaller the Enterprise Value is, the cheaper the company is.
Enterprise Value can be negative when the company's net cash is more than its Market Cap. In this case the investor is basically getting the company for free and get paid for that.
1. EV-to-EBIT is calculated as Enterprise Value divided by its EBIT.
Formula Systems (1985)'s current Enterprise Value is $1,474 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 $246 Mil.
2. EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA.
Formula Systems (1985)'s EV-to-EBITDA for today is:
Formula Systems (1985)'s current Enterprise Value is $1,474 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 $246 Mil.
Formula Systems (1985)'s current Enterprise Value is $1,474 Mil.
Formula Systems (1985)'s Revenue 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 $2,887 Mil.
Formula Systems (1985)'s current Enterprise Value is $1,474 Mil.
Formula Systems (1985)'s Cash Flow from Operations 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 $0 Mil.
Formula Systems (1985)'s current Enterprise Value is $1,474 Mil.
Formula Systems (1985)'s Free Cash Flow 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 $0 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) Enterprise Value Related Terms
Formula Systems (1985) Enterprise Value Historical Data
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The historical data trend for Formula Systems (1985)'s Enterprise Value 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: Enterprise Value Comparison
For the Information Technology Services subindustry, Formula Systems (1985)'s Enterprise Value, along with its competitors' market caps and Enterprise Value 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) Enterprise Value vs Software Industry
For the Software industry and Technology sector, Formula Systems (1985)'s Enterprise Value distribution charts can be found below:
* The bar in red indicates where Formula Systems (1985)'s Enterprise Value falls into.
Formula Systems (1985) Enterprise Value Calculation
Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
Formula Systems (1985)'s Enterprise Value for the fiscal year that ended in Dec. 2025 is calculated as
* 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 Enterprise Value of $1,474 Mil as of Jun. 28, 2026. Enterprise value equals the sum of market cap, debt and preferred shares less cash and equivalents. View historical data on Formula Systems (1985) and its competitors.
Is Formula Systems (1985)'s Enterprise Value too high?
Formula Systems (1985)'s current Enterprise Value is $1,474 Mil. Overall, Formula Systems (1985) has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Formula Systems (1985)'s Enterprise Value compare to IBM and ACN?
Formula Systems (1985)'s Enterprise Value of $1,474 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 Enterprise Value for a Software company?
A good Enterprise Value depends on the Software industry context. However, Enterprise Value 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 Enterprise Value mean?
A high Enterprise Value can signal that a stock is expensive relative to its fundamentals. Enterprise value equals the sum of market cap, debt and preferred shares less cash and equivalents. View historical data on Formula Systems (1985) and its competitors. Formula Systems (1985)'s current Enterprise Value is $1,474 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 $146.97, compared to a current price of $106.50 — trading 27.5% below its estimated fair value. The current Enterprise Value is $1,474 Mil. Formula Systems (1985)'s overall GF Score™ is 71/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Enterprise Value calculated?
Enterprise Value is calculated from a company's financial statements. For Formula Systems (1985) (FORTY), the current Enterprise Value is $1,474 Mil as of Jun. 28, 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 27.5% below its estimated GF Value™ of $146.97.
GuruFocus considers Formula Systems (1985) to be Modestly Undervalued.
Key valuation signals for FORTY:
Enterprise Value: $1,474 Mil
GF Value™: $146.97 vs. price of $106.50 (27.5% below fair value)
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.
71GF Score
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