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Magic Software Enterprises Ltd stock PB Ratio (=3.36) is close to 1-year low of 3.27.
The historical rank and industry rank for Magic Software Enterprises's PB Ratio or its related term are showing as below:
FRA:MGK'
s PB Ratio Range Over the Past 10 Years
Min: 1.39 Med: 2.11 Max: 4.89
Current: 3.36
During the past 13 years, Magic Software Enterprises's highest PB Ratio was 4.89. The lowest was 1.39. And the median was 2.11.
FRA:MGK's PB Ratio is not ranked
in the Software industry.
Industry Median: 2.5
vs FRA:MGK: 3.36
During the past 12 months, Magic Software Enterprises's average Book Value Per Share Growth Rate was -6.60% per year.
During the past 3 years, the average Book Value Per Share Growth Rate was 4.10% per year.
During the past 5 years, the average Book Value Per Share Growth Rate was 3.70% per year.
During the past 10 years, the average Book Value Per Share Growth Rate was 3.80% per year.
During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Magic Software Enterprises was 83.00% per year. The lowest was -29.50% per year. And the median was 4.10% per year.
The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.
Be Aware
Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.
Magic Software Enterprises PB Ratio Related Terms
Magic Software Enterprises PB Ratio 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, Magic Software Enterprises's PB Ratio, along with its competitors' market caps and PB Ratio 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 PB Ratio vs Software Industry
For the Software industry and Technology sector, Magic Software Enterprises's PB Ratio distribution charts can be found below:
* The bar in red indicates where Magic Software Enterprises's PB Ratio falls into.
The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.
* 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.
It can also be calculated from the numbers for the whole company:
A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.
Magic Software Enterprises (FRA:MGK) has a PB Ratio of 3.36 as of Aug. 17, 2026. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Magic Software Enterprises and its competitors. This is 59% above median its historical median of 2.11. Over the past decade, Magic Software Enterprises' PB Ratio has ranged from 1.39 to 4.89.
Is Magic Software Enterprises' PB Ratio too high?
Magic Software Enterprises' current PB Ratio of 3.36 is 59% above median its 10-year median of 2.11. Over the past 10 years, this metric has ranged from a low of 1.39 to a high of 4.89. The Software industry median PB Ratio is 2.50. Magic Software Enterprises' value of 3.36 is 34.4% above this industry median. 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' PB Ratio compare to IBM and ACN?
Magic Software Enterprises' PB Ratio of 3.36 can be compared against companies in the Software industry. The industry median PB Ratio is 2.50. Magic Software Enterprises' value of 3.36 is 34.4% above this benchmark. Historically, Magic Software Enterprises' own PB Ratio has ranged from 1.39 to 4.89 over the past decade. While the company's 10-year median is 2.11 vs. the industry median of 2.50, Magic Software Enterprises 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 PB Ratio for a Software company?
The median PB Ratio among Software companies is 2.50, based on 2,634 companies in the industry. Companies in the top quartile (top 25%) have a PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Magic Software Enterprises's current PB Ratio of 3.36 is 34.4% 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 PB Ratio mean?
A high PB Ratio can signal that a stock is expensive relative to its fundamentals. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Magic Software Enterprises and its competitors. For the Software industry, the median PB Ratio is 2.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magic Software Enterprises's current PB Ratio is 3.36, which is 59% above median its own 10-year median of 2.11. 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 PB Ratio of 3.36. 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 PB Ratio is 3.36, which is 59% above median its 10-year median of 2.11 and 34.4% above the Software industry median of 2.50. 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 PB Ratio calculated?
PB Ratio is calculated from a company's financial statements. For Magic Software Enterprises (FRA:MGK), the current PB Ratio is 3.36 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:
PB Ratio: 3.36 (59% above median its 10-year median of 2.11)
GF Value™: €12.26 vs. price of €16.10 (31.3% above fair value)
Industry Position: 34.4% above the Software median
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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