TextFRA:886 -2.46%93 EV-to-FCF is 8.62 as of Jul. 06, 2026, which is 60% below its 10-year median of 21.36. GuruFocus rates FRA:886 with a GF Score™ of 93/100 and a GF Value™ of €13.31 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,591 Software companies, Text ranks better than 72.03% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Text's Enterprise Value is €257.76 Mil.
Text's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was €29.89 Mil. Therefore, Text's EV-to-FCF for today is 8.62.
The historical rank and industry rank for Text's EV-to-FCF or its related term are showing as below:
FRA:886'
s EV-to-FCF Range Over the Past 10 Years
Min: 7 Med: 21.36 Max: 43.35
Current: 8.56
During the past 13 years, the highest EV-to-FCF of Text was 43.35. The lowest was 7.00. And the median was 21.36.
FRA:886's EV-to-FCF is ranked better than 72.03% of 1591
companies
in the Software industry
Industry Median: 14.6
vs FRA:886: 8.56
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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.
As of today (2026-07-06), Text's stock price is €10.32.
Text's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 was €1.049. Therefore, Text's PE Ratio (TTM) for today is 9.84.
Text (FRA:886) EV-to-FCF Explanation
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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.
Text's share price for today is €10.32.
Text'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 €1.049.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Text EV-to-FCF Related Terms
Text EV-to-FCF Historical Data
* Premium members only.
The historical data trend for Text's EV-to-FCF 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.
For the Software - Application subindustry, Text's EV-to-FCF, along with its competitors' market caps and EV-to-FCF 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.
Text EV-to-FCF vs Software Industry
For the Software industry and Technology sector, Text's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Text's EV-to-FCF falls into.
Text's current Enterprise Value is €257.76 Mil.
Text'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 €29.89 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.
Text (FRA:886) has a EV-to-FCF of 8.62 as of Jul. 06, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Text and its competitors. This is 60% below median its historical median of 21.36. Over the past decade, Text's EV-to-FCF has ranged from 7.00 to 43.35. According to the industry distribution chart, Text ranks #445 out of 1591 companies in the Software industry, placing it in the top 28%.
Is Text's EV-to-FCF too high?
Text's current EV-to-FCF of 8.62 is 60% below median its 10-year median of 21.36. Over the past 10 years, this metric has ranged from a low of 7.00 to a high of 43.35. The Software industry median EV-to-FCF is 14.60. Text's value of 8.62 is 41% below this industry median. Based on the distribution chart, Text ranks #445 out of 1591 companies in the Software industry, which is above the industry midpoint. Overall, Text has a GF Score™ of 93/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Text's EV-to-FCF compare to UBER and SHOP?
According to the Software industry distribution chart, Text ranks #445 out of 1591 companies for EV-to-FCF. This puts Text in the upper half of its industry. The industry median EV-to-FCF is 14.60. Text's value of 8.62 is 41% below this benchmark. Historically, Text's own EV-to-FCF has ranged from 7.00 to 43.35 over the past decade. While the company's 10-year median is 21.36 vs. the industry median of 14.60, Text 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-FCF for a Software company?
The median EV-to-FCF among Software companies is 14.60, based on 1,591 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Text's current EV-to-FCF of 8.62 is 41% 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-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Text and its competitors. For the Software industry, the median EV-to-FCF is 14.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Text's current EV-to-FCF is 8.62, which is 60% below median its own 10-year median of 21.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Text stock overvalued right now?
Based on GuruFocus' analysis, Text (FRA:886) is currently considered Modestly Undervalued. The stock's GF Value™ is €13.31, compared to a current price of €10.32 — trading 22.5% below its estimated fair value. The current EV-to-FCF is 8.62, which is 60% below median its 10-year median of 21.36 and 41% below the Software industry median of 14.60. Text's overall GF Score™ is 93/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Text (FRA:886), the current EV-to-FCF is 8.62 as of Jul. 06, 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 Text (FRA:886) Overvalued in 2026?
Based on GuruFocus' analysis, Text stock appears to be undervalued.
The current stock price of €10.32 is trading 22.5% below its estimated GF Value™ of €13.31.
GuruFocus considers Text to be Modestly Undervalued.
Key valuation signals for FRA:886:
EV-to-FCF: 8.62 (60% below median its 10-year median of 21.36)
GF Value™: €13.31 vs. price of €10.32 (22.5% below fair value)
Industry Position: 41% below the Software median (#445 of 1591)
No single metric tells the full story. See the FRA:886 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Text SA is a Poland-based company engaged in world-wide AI sales and customer service software. It is offering products in a SaaS model. The company automates customer service at scale by analyzing and enriching text communication. The group has developed multiple products: Text, an AI-powered customer communication suite; LiveChat, a live chat product that allows businesses to communicate with website visitors in real time. ChatBot, a platform for building and managing conversational AI chatbots; HelpDesk, an online ticketing system; KnowledgeBase, a knowledge management platform; OpenWidget, a website widget tool.
93GF Score
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