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In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
Formula Systems (1985)'s Net-Net Working Capital for the quarter that ended in Mar. 2026 was €-23.62.
The industry rank for Formula Systems (1985)'s Net-Net Working Capital or its related term are showing as below:
FRA:FSY's Price-to-Net-Net-Working-Capital is not ranked *
in the Software industry.
Industry Median: 6.7 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
Formula Systems (1985) (FRA:FSY) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Formula Systems (1985) Net-Net Working Capital Related Terms
Formula Systems (1985) Net-Net Working Capital Historical Data
* Premium members only.
The historical data trend for Formula Systems (1985)'s Net-Net Working Capital 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) Net-Net Working Capital Chart
FRA:FSY vs IBM, ACN, FISV: Net-Net Working Capital Comparison
For the Information Technology Services subindustry, Formula Systems (1985)'s Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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-Net-Net-Working-Capital vs Software Industry
For the Software industry and Technology sector, Formula Systems (1985)'s Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Formula Systems (1985)'s Price-to-Net-Net-Working-Capital 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.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of €-23.62 mean?
Formula Systems (1985) (FRA:FSY) has a Net-Net Working Capital of €-23.62 as of Mar. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Formula Systems (1985) According to the industry distribution chart, Formula Systems (1985) ranks #999999 out of 1260 companies in the Software industry.
Is Formula Systems (1985)'s Net-Net Working Capital too high?
Formula Systems (1985)'s current Net-Net Working Capital is €-23.62. Based on the distribution chart, Formula Systems (1985) ranks #999999 out of 1260 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Formula Systems (1985) has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Formula Systems (1985)'s Net-Net Working Capital compare to IBM and ACN?
According to the Software industry distribution chart, Formula Systems (1985) ranks #999999 out of 1260 companies for Net-Net Working Capital. This places Formula Systems (1985) in the lower half of its industry. The industry median Net-Net Working Capital is 6.70. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Software company?
The median Net-Net Working Capital among Software companies is 6.70, based on 1,260 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital 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 Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Formula Systems (1985) For the Software industry, the median Net-Net Working Capital is 6.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formula Systems (1985)'s current Net-Net Working Capital is €-23.62. 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 Modestly Undervalued. The stock's GF Value™ is €100.76, compared to a current price of €88.50 — trading 12.2% below its estimated fair value. The current Net-Net Working Capital is €-23.62. Formula Systems (1985)'s overall GF Score™ is 68/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Formula Systems (1985) (FRA:FSY), the current Net-Net Working Capital is €-23.62 as of Mar. 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 €88.50 is trading 12.2% below its estimated GF Value™ of €100.76.
GuruFocus considers Formula Systems (1985) to be Modestly Undervalued.
Key valuation signals for FRA:FSY:
Net-Net Working Capital: €-23.62
GF Value™: €100.76 vs. price of €88.50 (12.2% 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.
68GF Score
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