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Microware GroupHKSE:01985 +3.13%60 EV-to-FCF is 159.56 as of Jul. 31, 2026, which is 31812% above its 10-year median of 0.50. GuruFocus rates HKSE:01985 with a GF Score™ of 60/100 and a GF Value™ of HK$1.15 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,604 Software companies, Microware Group ranks worse than 94.7% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Microware Group's Enterprise Value is HK$937 Mil.
Microware Group's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was HK$6 Mil. Therefore, Microware Group's EV-to-FCF for today is 159.56.
The historical rank and industry rank for Microware Group's EV-to-FCF or its related term are showing as below:
HKSE:01985'
s EV-to-FCF Range Over the Past 10 Years
Min: -147.23 Med: 0.5 Max: 188.16
Current: 159.56
During the past 13 years, the highest EV-to-FCF of Microware Group was 188.16. The lowest was -147.23. And the median was 0.50.
HKSE:01985's EV-to-FCF is ranked worse than 94.7% of 1604
companies
in the Software industry
Industry Median: 14.8
vs HKSE:01985: 159.56
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.
Microware Group (HKSE:01985) 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.
Microware Group's PE Ratio (TTM) for today is calculated as:
Microware Group's share price for today is HK$2.97.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Microware Group's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 was HK$0.100.
* 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.
Microware Group EV-to-FCF Related Terms
Microware Group EV-to-FCF Historical Data
* Premium members only.
The historical data trend for Microware Group'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.
HKSE:01985 vs IBM, ACN, FISV: EV-to-FCF Comparison
For the Information Technology Services subindustry, Microware Group'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.
Microware Group EV-to-FCF vs Software Industry
For the Software industry and Technology sector, Microware Group's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Microware Group's EV-to-FCF falls into.
Microware Group's current Enterprise Value is HK$937 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Microware Group's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was HK$6 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.
Microware Group (HKSE:01985) has a EV-to-FCF of 159.56 as of Jul. 31, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Microware Group and its competitors. This is 31812% above median its historical median of 0.50. According to the industry distribution chart, Microware Group ranks #1519 out of 1604 companies in the Software industry, placing it in the top 94.7%.
Is Microware Group's EV-to-FCF too high?
Microware Group's current EV-to-FCF of 159.56 is 31812% above median its 10-year median of 0.50. The Software industry median EV-to-FCF is 14.80. Microware Group's value of 159.56 is 978.1% above this industry median. Based on the distribution chart, Microware Group ranks #1519 out of 1604 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Microware Group has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Microware Group's EV-to-FCF compare to IBM and ACN?
According to the Software industry distribution chart, Microware Group ranks #1519 out of 1604 companies for EV-to-FCF. This places Microware Group in the lower half of its industry. The industry median EV-to-FCF is 14.80. Microware Group's value of 159.56 is 978.1% above this benchmark. While the company's 10-year median is 0.50 vs. the industry median of 14.80, Microware Group has consistently been above 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 14.80, based on 1,604 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. Microware Group's current EV-to-FCF of 159.56 is 978.1% above 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 Microware Group and its competitors. For the Software industry, the median EV-to-FCF is 14.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Microware Group's current EV-to-FCF is 159.56, which is 31812% above median its own 10-year median of 0.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Microware Group stock overvalued right now?
Based on GuruFocus' analysis, Microware Group (HKSE:01985) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$1.15, compared to a current price of HK$2.97 — trading 158.3% above its estimated fair value. The current EV-to-FCF is 159.56, which is 31812% above median its 10-year median of 0.50 and 978.1% above the Software industry median of 14.80. Microware Group's overall GF Score™ is 60/100 with 3 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 Microware Group (HKSE:01985), the current EV-to-FCF is 159.56 as of Jul. 31, 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 Microware Group (HKSE:01985) Overvalued in 2026?
Based on GuruFocus' analysis, Microware Group stock appears to be overvalued.
The current stock price of HK$2.97 is trading 158.3% above its estimated GF Value™ of HK$1.15.
GuruFocus considers Microware Group to be Significantly Overvalued.
Key valuation signals for HKSE:01985:
EV-to-FCF: 159.56 (31812% above median its 10-year median of 0.50)
GF Value™: HK$1.15 vs. price of HK$2.97 (158.3% above fair value)
Industry Position: 978.1% above the Software median (#1519 of 1604)
No single metric tells the full story. See the HKSE:01985 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Microware Group Ltd is an investment holding company. The company is principally engaged in the provision of IT infrastructure solutions services and IT managed services in Hong Kong. The group strives to provide one-stop IT experience that begins with consultation and advice; semiconductor products, hardware and/or software procurement; implementation; and management and maintenance of the IT infrastructure solutions. Its operating segment includes IT infrastructure solution services business; and IT managed services business of which the majority of revenue is derived from IT infrastructure solution services business. Its revenue is derived from its operation in Hong Kong.
60GF Score
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