FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Formula Systems (1985) FCF Yield % Related Terms
Formula Systems (1985) FCF Yield % Historical Data
* 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, Formula Systems (1985)'s FCF Yield %, along with its competitors' market caps and FCF Yield % 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) FCF Yield % vs Software Industry
For the Software industry and Technology sector, Formula Systems (1985)'s FCF Yield % distribution charts can be found below:
* The bar in red indicates where Formula Systems (1985)'s FCF Yield % falls into.
* 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 FCF Yield % of 22.90 as of Jun. 27, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Formula Systems (1985) and its competitors. According to the industry distribution chart, Formula Systems (1985) ranks #120 out of 2868 companies in the Software industry, placing it in the top 4.2%.
Is Formula Systems (1985)'s FCF Yield % too high?
Formula Systems (1985)'s current FCF Yield % is 22.90. The Software industry median FCF Yield % is 0.89. Formula Systems (1985)'s value of 22.90 is 2487.6% above this industry median. Based on the distribution chart, Formula Systems (1985) ranks #120 out of 2868 companies in the Software industry, which is in the top quartile — a strong position relative to peers. 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 FCF Yield % compare to IBM and ACN?
According to the Software industry distribution chart, Formula Systems (1985) ranks #120 out of 2868 companies for FCF Yield %. This places Formula Systems (1985) in the top 4% of its industry — outperforming the majority of peers. The industry median FCF Yield % is 0.89. Formula Systems (1985)'s value of 22.90 is 2487.6% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Yield % for a Software company?
The median FCF Yield % among Software companies is 0.89, based on 2,868 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formula Systems (1985)'s current FCF Yield % of 22.90 is 2487.6% 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 FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Formula Systems (1985) and its competitors. For the Software industry, the median FCF Yield % is 0.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formula Systems (1985)'s current FCF Yield % is 22.90. 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 FCF Yield % is 22.90 and 2487.6% above the Software industry median of 0.89. 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 FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For Formula Systems (1985) (FORTY), the current FCF Yield % is 22.90 as of Jun. 27, 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:
FCF Yield %: 22.90
GF Value™: $146.97 vs. price of $106.50 (27.5% below fair value)
Industry Position: 2487.6% above the Software median (#120 of 2868)
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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FCF Yield % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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