Formula Systems (1985)FRA:FSY +0.57%71 PEG Ratio is 15.09 as of Jun. 28, 2026, which is 757% above its 10-year median of 1.76. GuruFocus rates FRA:FSY with a GF Score™ of 71/100 and a GF Value™ of €120.75 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 821 Software companies, Formula Systems (1985) ranks worse than 95.25% on this metric.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Formula Systems (1985)'s PEG Ratio or its related term are showing as below:
FRA:FSY'
s PEG Ratio Range Over the Past 10 Years
Min: 0.99 Med: 1.76 Max: 149.93
Current: 15.01
During the past 13 years, Formula Systems (1985)'s highest PEG Ratio was 149.93. The lowest was 0.99. And the median was 1.76.
FRA:FSY's PEG Ratio is ranked worse than 95.25% of 821
companies
in the Software industry
Industry Median: 1.26
vs FRA:FSY: 15.01
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Formula Systems (1985) (FRA:FSY) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
* 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 PEG Ratio, along with its competitors' market caps and PEG 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.
Formula Systems (1985) PEG Ratio vs Software Industry
For the Software industry and Technology sector, Formula Systems (1985)'s PEG Ratio distribution charts can be found below:
* The bar in red indicates where Formula Systems (1985)'s PEG Ratio 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Formula Systems (1985) (FRA:FSY) has a PEG Ratio of 15.09 as of Jun. 28, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Formula Systems (1985) and its competitors. This is 757% above median its historical median of 1.76. Over the past decade, Formula Systems (1985)'s PEG Ratio has ranged from 0.99 to 149.93. According to the industry distribution chart, Formula Systems (1985) ranks #782 out of 821 companies in the Software industry, placing it in the top 95.2%.
Is Formula Systems (1985)'s PEG Ratio too high?
Formula Systems (1985)'s current PEG Ratio of 15.09 is 757% above median its 10-year median of 1.76. Over the past 10 years, this metric has ranged from a low of 0.99 to a high of 149.93. The Software industry median PEG Ratio is 1.26. Formula Systems (1985)'s value of 15.09 is 1097.6% above this industry median. Based on the distribution chart, Formula Systems (1985) ranks #782 out of 821 companies in the Software industry, which is in the bottom quartile 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 PEG Ratio compare to IBM and ACN?
According to the Software industry distribution chart, Formula Systems (1985) ranks #782 out of 821 companies for PEG Ratio. This places Formula Systems (1985) in the lower half of its industry. The industry median PEG Ratio is 1.26. Formula Systems (1985)'s value of 15.09 is 1097.6% above this benchmark. Historically, Formula Systems (1985)'s own PEG Ratio has ranged from 0.99 to 149.93 over the past decade. While the company's 10-year median is 1.76 vs. the industry median of 1.26, Formula Systems (1985) 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 PEG Ratio for a Software company?
The median PEG Ratio among Software companies is 1.26, based on 821 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formula Systems (1985)'s current PEG Ratio of 15.09 is 1097.6% 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Formula Systems (1985) and its competitors. For the Software industry, the median PEG Ratio is 1.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formula Systems (1985)'s current PEG Ratio is 15.09, which is 757% above median its own 10-year median of 1.76. 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 €120.75, compared to a current price of €87.50 — trading 27.5% below its estimated fair value. The current PEG Ratio is 15.09, which is 757% above median its 10-year median of 1.76 and 1097.6% above the Software industry median of 1.26. 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 PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For Formula Systems (1985) (FRA:FSY), the current PEG Ratio is 15.09 as of Jun. 28, 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 €87.50 is trading 27.5% below its estimated GF Value™ of €120.75.
GuruFocus considers Formula Systems (1985) to be Modestly Undervalued.
Key valuation signals for FRA:FSY:
PEG Ratio: 15.09 (757% above median its 10-year median of 1.76)
GF Value™: €120.75 vs. price of €87.50 (27.5% below fair value)
Industry Position: 1097.6% above the Software median (#782 of 821)
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.
71GF Score
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