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Note: Discounted FCF model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.
Magic Software Enterprises Margin of Safety % (DCF FCF Based) Related Terms
FRA:MGK vs IBM, ACN, FISV: Margin of Safety % (DCF FCF Based) Comparison
For the Information Technology Services subindustry, Magic Software Enterprises's Margin of Safety % (DCF FCF Based), along with its competitors' market caps and Margin of Safety % (DCF FCF Based) 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.
Magic Software Enterprises Margin of Safety % (DCF FCF Based) vs Software Industry
For the Software industry and Technology sector, Magic Software Enterprises's Margin of Safety % (DCF FCF Based) distribution charts can be found below:
* The bar in red indicates where Magic Software Enterprises's Margin of Safety % (DCF FCF Based) 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.
The intrinsic value is calculated from the Discounted FCF model with default parameters. The calculation method is the same as Discounted Earnings model except free cash flow are used in the calculation instead of earnings per share.
What does a Margin of Safety % (DCF FCF Based) of 53.31% mean?
Magic Software Enterprises (FRA:MGK) has a Margin of Safety % (DCF FCF Based) of 53.31% as of Aug. 17, 2026. Margin of Safety % (DCF FCF Based) is the percent difference between the current price and the intrinsic DCF FCF price. View historical data on Magic Software Enterprises.
Is Magic Software Enterprises' Margin of Safety % (DCF FCF Based) too high?
Magic Software Enterprises' current Margin of Safety % (DCF FCF Based) is 53.31%. Overall, Magic Software Enterprises has a GF Score™ of 90/100, reflecting its overall financial health beyond just this single metric.
How does Magic Software Enterprises' Margin of Safety % (DCF FCF Based) compare to IBM and ACN?
Magic Software Enterprises' Margin of Safety % (DCF FCF Based) of 53.31% can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Margin of Safety % (DCF FCF Based) for a Software company?
A good Margin of Safety % (DCF FCF Based) depends on the Software industry context. However, Margin of Safety % (DCF FCF Based) 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 Margin of Safety % (DCF FCF Based) mean?
A high Margin of Safety % (DCF FCF Based) can signal that a stock is expensive relative to its fundamentals. Margin of Safety % (DCF FCF Based) is the percent difference between the current price and the intrinsic DCF FCF price. View historical data on Magic Software Enterprises. Magic Software Enterprises's current Margin of Safety % (DCF FCF Based) is 53.31%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Magic Software Enterprises stock overvalued right now?
Magic Software Enterprises (FRA:MGK) has a current Margin of Safety % (DCF FCF Based) of 53.31%. The stock's GF Value™ is €12.26, compared to a current price of €16.10 — trading 31.3% above its estimated fair value. The current Margin of Safety % (DCF FCF Based) is 53.31%. Magic Software Enterprises' overall GF Score™ is 90/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Margin of Safety % (DCF FCF Based) calculated?
Margin of Safety % (DCF FCF Based) is calculated from a company's financial statements. For Magic Software Enterprises (FRA:MGK), the current Margin of Safety % (DCF FCF Based) is 53.31% as of Aug. 17, 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 Magic Software Enterprises (FRA:MGK) Overvalued in 2026?
Based on GuruFocus' analysis, Magic Software Enterprises stock appears to be overvalued.
The current stock price of €16.10 is trading 31.3% above its estimated GF Value™ of €12.26.
Key valuation signals for FRA:MGK:
Margin of Safety % (DCF FCF Based): 53.31%
GF Value™: €12.26 vs. price of €16.10 (31.3% above fair value)
No single metric tells the full story. See the FRA:MGK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Magic Software Enterprises Ltd is a software development company. The company's operating segment includes Software Services and IT Professional Services. The company generates maximum revenue from the IT Professional Services segment. IT Professional Services segment offers IT services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, communications services and solutions, as well as supplemental outsourcing services. Geographically, it derives a majority of revenue from the United States and also has a presence in Israel, Europe, Japan, and Other countries.
90GF Score
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Margin of Safety % (DCF FCF Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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