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Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.
The historical rank and industry rank for Formula Systems (1985)'s Intrinsic Value: Projected FCF or its related term are showing as below:
FRA:FSY'
s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.41 Med: 0.78 Max: 1.07
Current: 0.55
During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Formula Systems (1985) was 1.07. The lowest was 0.41. And the median was 0.78.
FRA:FSY's Price-to-Projected-FCF is ranked better than 87.51% of 1473
companies
in the Software industry
Industry Median: 1.42
vs FRA:FSY: 0.55
Formula Systems (1985) (FRA:FSY) Intrinsic Value: Projected FCF Explanation
The growth multiple is capped between 8.35 and 17.74.
Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.
Formula Systems (1985)'s Price-to-Intrinsic-Value-Projected-FCF for today is calculated as
Price-to-Intrinsic-Value-Projected-FCF
=
Share Price
/
Intrinsic Value: Projected FCF
=
105.00
/
204.5187821487
=
0.51
* 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) Intrinsic Value: Projected FCF Related Terms
Formula Systems (1985) Intrinsic Value: Projected FCF Historical Data
* Premium members only.
The historical data trend for Formula Systems (1985)'s Intrinsic Value: Projected 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.
Formula Systems (1985) Intrinsic Value: Projected FCF Chart
FRA:FSY vs IBM, ACN, CTSH: Intrinsic Value: Projected FCF Comparison
For the Information Technology Services subindustry, Formula Systems (1985)'s Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-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.
Formula Systems (1985) Price-to-Projected-FCF vs Software Industry
For the Software industry and Technology sector, Formula Systems (1985)'s Price-to-Projected-FCF distribution charts can be found below:
* The bar in red indicates where Formula Systems (1985)'s Price-to-Projected-FCF falls into.
Formula Systems (1985) Intrinsic Value: Projected FCF Calculation
Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.
The details of how we calculate the intrinsic value of stocks are described in detail here.
This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.
* 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.
What does a Intrinsic Value: Projected FCF of €191.26 mean?
Formula Systems (1985) (FRA:FSY) has a Intrinsic Value: Projected FCF of €191.26 as of Sep. 09, 2026. Intrinsic Value: Projected FCF is the stock value based on a projected free cash flow model. View historical data on Formula Systems (1985) and its competitors. According to the industry distribution chart, Formula Systems (1985) ranks #184 out of 1473 companies in the Software industry, placing it in the top 12.5%.
Is Formula Systems (1985)'s Intrinsic Value: Projected FCF too high?
Formula Systems (1985)'s current Intrinsic Value: Projected FCF is €191.26. Based on the distribution chart, Formula Systems (1985) ranks #184 out of 1473 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 66/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Formula Systems (1985)'s Intrinsic Value: Projected FCF compare to IBM and ACN?
According to the Software industry distribution chart, Formula Systems (1985) ranks #184 out of 1473 companies for Intrinsic Value: Projected FCF. This places Formula Systems (1985) in the top 13% of its industry — outperforming the majority of peers. The industry median Intrinsic Value: Projected FCF is 1.42. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Intrinsic Value: Projected FCF for a Software company?
The median Intrinsic Value: Projected FCF among Software companies is 1.42, based on 1,473 companies in the industry. Companies in the top quartile (top 25%) have a Intrinsic Value: Projected FCF significantly above this median, while those in the bottom quartile fall well below. However, Intrinsic Value: Projected FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Intrinsic Value: Projected FCF mean?
A high Intrinsic Value: Projected FCF can signal that a stock is expensive relative to its fundamentals. Intrinsic Value: Projected FCF is the stock value based on a projected free cash flow model. View historical data on Formula Systems (1985) and its competitors. For the Software industry, the median Intrinsic Value: Projected FCF is 1.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formula Systems (1985)'s current Intrinsic Value: Projected FCF is €191.26. 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) (FRA:FSY) is currently considered Fairly Valued. The stock's GF Value™ is €114.38, compared to a current price of €105.00 — trading 8.2% below its estimated fair value. The current Intrinsic Value: Projected FCF is €191.26. Formula Systems (1985)'s overall GF Score™ is 66/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Intrinsic Value: Projected FCF calculated?
Intrinsic Value: Projected FCF is calculated from a company's financial statements. For Formula Systems (1985) (FRA:FSY), the current Intrinsic Value: Projected FCF is €191.26 as of Sep. 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 Formula Systems (1985) (FRA:FSY) Overvalued in 2026?
Based on GuruFocus' analysis, Formula Systems (1985) stock appears to be undervalued.
The current stock price of €105.00 is trading 8.2% below its estimated GF Value™ of €114.38.
GuruFocus considers Formula Systems (1985) to be Fairly Valued.
Key valuation signals for FRA:FSY:
Intrinsic Value: Projected FCF: €191.26
GF Value™: €114.38 vs. price of €105.00 (8.2% below fair value)
No single metric tells the full story. See the FRA:FSY 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.
66GF Score
Get the complete analysis for FRA:FSY
Intrinsic Value: Projected FCF is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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