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Observit ABOSTO:OBSE +4.76%33 EV-to-FCF is 118.87 as of Aug. 09, 2026, which is 180% above its 10-year median of 42.52. GuruFocus rates OSTO:OBSE with a GF Score™ of 33/100 and a GF Value™ of kr0.40 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,602 Software companies, Observit AB ranks worse than 93.2% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Observit AB's Enterprise Value is kr373.98 Mil.
Observit AB's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was kr3.15 Mil. Therefore, Observit AB's EV-to-FCF for today is 118.87.
The historical rank and industry rank for Observit AB's EV-to-FCF or its related term are showing as below:
OSTO:OBSE'
s EV-to-FCF Range Over the Past 10 Years
Min: 9.74 Med: 42.52 Max: 3022.74
Current: 118.87
During the past 5 years, the highest EV-to-FCF of Observit AB was 3022.74. The lowest was 9.74. And the median was 42.52.
OSTO:OBSE's EV-to-FCF is ranked worse than 93.2% of 1602
companies
in the Software industry
Industry Median: 15.42
vs OSTO:OBSE: 118.87
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.
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.
Observit AB's PE Ratio (TTM) for today is calculated as:
Observit AB's share price for today is kr0.66.
Observit AB'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 kr0.002.
* 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.
Observit AB EV-to-FCF Related Terms
Observit AB EV-to-FCF Historical Data
* Premium members only.
The historical data trend for Observit AB'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 Information Technology Services subindustry, Observit AB'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.
Observit AB EV-to-FCF vs Software Industry
For the Software industry and Technology sector, Observit AB's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Observit AB's EV-to-FCF falls into.
Observit AB's current Enterprise Value is kr373.98 Mil.
Observit AB'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 kr3.15 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.
Observit AB (OSTO:OBSE) has a EV-to-FCF of 118.87 as of Aug. 09, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Observit AB and its competitors. This is 180% above median its historical median of 42.52. Over the past decade, Observit AB's EV-to-FCF has ranged from 9.74 to 3,022.74. According to the industry distribution chart, Observit AB ranks #1493 out of 1602 companies in the Software industry, placing it in the top 93.2%.
Is Observit AB's EV-to-FCF too high?
Observit AB's current EV-to-FCF of 118.87 is 180% above median its 10-year median of 42.52. Over the past 10 years, this metric has ranged from a low of 9.74 to a high of 3,022.74. The Software industry median EV-to-FCF is 15.42. Observit AB's value of 118.87 is 670.9% above this industry median. Based on the distribution chart, Observit AB ranks #1493 out of 1602 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Observit AB has a GF Score™ of 33/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Observit AB's EV-to-FCF compare to IBM and ACN?
According to the Software industry distribution chart, Observit AB ranks #1493 out of 1602 companies for EV-to-FCF. This places Observit AB in the lower half of its industry. The industry median EV-to-FCF is 15.42. Observit AB's value of 118.87 is 670.9% above this benchmark. Historically, Observit AB's own EV-to-FCF has ranged from 9.74 to 3,022.74 over the past decade. While the company's 10-year median is 42.52 vs. the industry median of 15.42, Observit AB 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 15.42, based on 1,602 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. Observit AB's current EV-to-FCF of 118.87 is 670.9% 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 Observit AB and its competitors. For the Software industry, the median EV-to-FCF is 15.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Observit AB's current EV-to-FCF is 118.87, which is 180% above median its own 10-year median of 42.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Observit AB stock overvalued right now?
Based on GuruFocus' analysis, Observit AB (OSTO:OBSE) is currently considered Significantly Overvalued. The stock's GF Value™ is kr0.40, compared to a current price of kr0.66 — trading 65% above its estimated fair value. The current EV-to-FCF is 118.87, which is 180% above median its 10-year median of 42.52 and 670.9% above the Software industry median of 15.42. Observit AB's overall GF Score™ is 33/100 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 Observit AB (OSTO:OBSE), the current EV-to-FCF is 118.87 as of Aug. 09, 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 Observit AB (OSTO:OBSE) Overvalued in 2026?
Based on GuruFocus' analysis, Observit AB stock appears to be overvalued.
The current stock price of kr0.66 is trading 65% above its estimated GF Value™ of kr0.40.
GuruFocus considers Observit AB to be Significantly Overvalued.
Key valuation signals for OSTO:OBSE:
EV-to-FCF: 118.87 (180% above median its 10-year median of 42.52)
GF Value™: kr0.40 vs. price of kr0.66 (65% above fair value)
Industry Position: 670.9% above the Software median (#1493 of 1602)
No single metric tells the full story. See the OSTO:OBSE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Observit AB is the market leader in the Nordics when it comes to mobile video surveillance in public transport. The company provides software as a cloud service, and a Software as a Service (SaaS) solution, and currently has approximately 38,000 licenses (one license per security camera) connected globally. The customer base includes bus operators such as Nobina, Keolis, and Arriva and other transport-heavy customers such as Elis. Observit wants to become the brand for mobile video solutions in the transport sector.
33GF Score
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