Formula Systems (1985) (Formula Systems (1985)) EV-to-EBITDA : 5.81 (As of Apr. 24, 2024)

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What is Formula Systems (1985) EV-to-EBITDA?

EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, Formula Systems (1985)'s enterprise value is $1,381 Mil. Formula Systems (1985)'s EBITDA for the trailing twelve months (TTM) ended in Sep. 2023 was $238 Mil. Therefore, Formula Systems (1985)'s EV-to-EBITDA for today is 5.81.

The historical rank and industry rank for Formula Systems (1985)'s EV-to-EBITDA or its related term are showing as below:

FORTY' s EV-to-EBITDA Range Over the Past 10 Years
Min: 5.8 Med: 10.96 Max: 18.2
Current: 5.81

During the past 13 years, the highest EV-to-EBITDA of Formula Systems (1985) was 18.20. The lowest was 5.80. And the median was 10.96.

FORTY's EV-to-EBITDA is ranked better than
83.13% of 1849 companies
in the Software industry
Industry Median: 14.7 vs FORTY: 5.81

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.

As of today (2024-04-24), Formula Systems (1985)'s stock price is $74.60. Formula Systems (1985)'s Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2023 was $4.120. Therefore, Formula Systems (1985)'s PE Ratio for today is 18.11.

The "classic" EV-to-EBITDA is much better in capturing debt and net cash than the PE Ratio.

Formula Systems (1985) EV-to-EBITDA Historical Data

The historical data trend for Formula Systems (1985)'s EV-to-EBITDA 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.

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Formula Systems (1985) EV-to-EBITDA Chart

Formula Systems (1985) Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

EV-to-EBITDA

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6.57

7.30

7.24

7.34

4.78

Formula Systems (1985) Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
EV-to-EBITDA	Get a 7-Day Free Trial															7.55	4.78	6.59	8.51	8.46

Competitive Comparison of Formula Systems (1985)'s EV-to-EBITDA

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)'s EV-to-EBITDA Distribution in the 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) EV-to-EBITDA Calculation

Formula Systems (1985)'s EV-to-EBITDA for today is calculated as:

EV-to-EBITDA	=	Enterprise Value (Today)	/	EBITDA (TTM)
	=	1381.047	/	237.705
	=	5.81

Formula Systems (1985)'s current Enterprise Value is $1,381 Mil.
Formula Systems (1985)'s EBITDA for the trailing twelve months (TTM) ended in Sep. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $238 Mil.

Formula Systems (1985) (NAS:FORTY) EV-to-EBITDA Explanation

Formula Systems (1985)'s PE Ratio for today is calculated as:

PE Ratio	=	Share Price (Today)	/	Earnings per Share (Diluted) (TTM)
	=	74.60	/	4.120
	=	18.11

Formula Systems (1985)'s share price for today is $74.60.
Formula Systems (1985)'s Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $4.120.

Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio.

Please read Which price ratio outperforms the enterprise multiple?

Formula Systems (1985) EV-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Formula Systems (1985)'s EV-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.

Formula Systems (1985) (Formula Systems (1985)) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Formula Systems (1985) Ltd (NAS:FORTY) » Definitions » EV-to-EBITDA

Comparable Companies

Traded in Other Exchanges

FORTY:Israel FSY:Germany FSY:Germany

Address

Yahadut Canada 1 Street, Or Yehuda, Tel Aviv, ISR, 6037501

Website

https://www.formulasystems.com

Formula Systems (1985) Ltd is a holding company that, through its subsidiaries, provides information technology services. The company organizes itself into three primary segments based on the subsidiary. The Matrix segment, which generates the majority of revenue, provides software development and existing software expansion services. The Sapiens segment provides software development services for the insurance industry. The Magic Software segment provides vendor management systems and workforce management services, which include accounting and finance, human resources, IT technology, and marketing and sales. Michpal; ZAP Group and Others. The majority of the company's revenue comes from Israel.