PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Formula Systems (1985)'s PE Ratio without NRI is 17.94. Formula Systems (1985)'s 5-Year EBITDA growth rate is 27.60%. Therefore, Formula Systems (1985)'s PEG Ratio for today is 0.65.
* 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:
FORTY'
s PEG Ratio Range Over the Past 10 Years
Min: 0.46 Med: 1.23 Max: 22.11
Current: 0.65
During the past 13 years, Formula Systems (1985)'s highest PEG Ratio was 22.11. The lowest was 0.46. And the median was 1.23.
FORTY's PEG Ratio is ranked better than 81.99% of 772
companies
in the Software industry
Industry Median: 1.59
vs FORTY: 0.65
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Formula Systems (1985) PEG Ratio Historical Data
The historical data trend for Formula Systems (1985)'s PEG Ratio 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.
Competitive Comparison of Formula Systems (1985)'s PEG Ratio
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)'s PEG Ratio Distribution in the 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.
Formula Systems (1985) PEG Ratio Calculation
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio.
The ratio we use is the 5-Year EBITDA growth rate.
Formula Systems (1985)'s PEG Ratio for today is calculated as
* 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) (NAS:FORTY) 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.
Formula Systems (1985) PEG Ratio Related Terms
Thank you for viewing the detailed overview of Formula Systems (1985)'s PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Formula Systems (1985) (Formula Systems (1985)) Business Description
Formula Systems (1985) Ltd is a holding company that, through its subsidiaries, provides information technology services. The company organizes itself into three primary segments based on the subsidiary. The Matrix segment, which generates the majority of revenue, provides software development and existing software expansion services. The Sapiens segment provides software development services for the insurance industry. The Magic Software segment provides vendor management systems and workforce management services, which include accounting and finance, human resources, IT technology, and marketing and sales. Michpal; ZAP Group and Others. The majority of the company's revenue comes from Israel.
Formula Systems (1985) (Formula Systems (1985)) Headlines
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