Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year. Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years. If 5-Year Growth Rate is greater than 25% a year, we use 25. If 5-Year Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.
Here, as of today, Sapiens International NV's PEG is 1. Sapiens International NV's 5-Year TTM EBITDA Growth Rate is 9.44.
Sapiens International NV's EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2025 was €1.25. Therefore, the Peter Lynch Fair Value for today is €11.81.
The historical rank and industry rank for Sapiens International NV's Peter Lynch Fair Value or its related term are showing as below:
FRA:S3P'
s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 0.62 Med: 1.42 Max: 4.83
Current: 4.16
During the past 13 years, the highest Price to Peter Lynch Fair Value Ratio of Sapiens International NV was 4.83. The lowest was 0.62. And the median was 1.42.
FRA:S3P's Price-to-Peter-Lynch-Fair-Value is not ranked
in the Software industry.
Industry Median: 1.25
vs FRA:S3P: 4.16
Note: Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart.
Sapiens International NV (FRA:S3P) Peter Lynch Fair Value Explanation
Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year.
Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years.
Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart. In Peter Lynch chart, a fixed P/E ratio of 15 is used to draw the Earnings Line. Therefore the value reached has a P/E ratio of 15. But in Peter Lynch Fair Value calculation, P/E equals to the growth rate of EBITDA per share over the past 5 years, which is 9.44 instead of 15 in this case.
Sapiens International NV's Price to Peter Lynch Fair Value Ratio for today is calculated as
Price to Peter Lynch Fair Value
=
Share Price
/
Peter Lynch Fair Value
=
36.80
/
11.81
=
3.12
* 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.
Sapiens International NV Peter Lynch Fair Value Related Terms
Sapiens International NV Peter Lynch Fair Value Historical Data
* Premium members only.
The historical data trend for Sapiens International NV's Peter Lynch Fair Value 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.
Sapiens International NV Peter Lynch Fair Value Chart
FRA:S3P vs ALKT, VIA, PLUS: Peter Lynch Fair Value Comparison
For the Software - Application subindustry, Sapiens International NV's Price-to-Peter-Lynch-Fair-Value, along with its competitors' market caps and Price-to-Peter-Lynch-Fair-Value 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.
Sapiens International NV Price-to-Peter-Lynch-Fair-Value vs Software Industry
For the Software industry and Technology sector, Sapiens International NV's Price-to-Peter-Lynch-Fair-Value distribution charts can be found below:
* The bar in red indicates where Sapiens International NV's Price-to-Peter-Lynch-Fair-Value falls into.
Sapiens International NV's EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2025 adds up the quarterly data reported by the company within the most recent 12 months, which was €1.25.
* 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.
** Please be aware that the 5-Year TTM EBITDA Growth Rate is calculated based on TTM data over the last 5 years. For quarterly reported companies, the TTM data adds up the quarterly data reported by the company within the most recent 12 months. For companies that report semi-annually, annually, or do not have enough quarterly data, GuruFocus uses the annual data as the TTM data.
If 5-Year Earnings Growth Rate is greater than 25% a year, we use 25.
If 5-Year Earnings Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.
Please note that we use the 5-year average growth rate of EBITDA per share as the growth rate for non-bank companies, as EBITDA growth is subject to less manipulations than net earnings per share. For banks, we use the 5-year average growth rate of Book Value per share as the growth rate. The reason is that EBITDA is not applicable to Banks and Book value is a relative important measurement for Banks. In the calculation, PEG=1 because Peter Lynch thinks that the fair P/E ratio of the growth stock is equal to its earnings growth rate.
What does a Peter Lynch Fair Value of €11.81 mean?
Sapiens International NV (FRA:S3P) has a Peter Lynch Fair Value of €11.81 as of Aug. 02, 2026. Peter Lynch Fair Value is the stock value based on a company's current earnings and five-year earnings growth, assuming a PEG of one. View historical data on Sapiens International NV and its competitors. This is 732% above median its historical median of 1.42. Over the past decade, Sapiens International NV's Peter Lynch Fair Value has ranged from 0.62 to 4.83.
Is Sapiens International NV's Peter Lynch Fair Value too high?
Sapiens International NV's current Peter Lynch Fair Value of €11.81 is 732% above median its 10-year median of 1.42. Over the past 10 years, this metric has ranged from a low of 0.62 to a high of 4.83. Overall, Sapiens International NV has a GF Score™ of 75/100, reflecting its overall financial health beyond just this single metric.
How does Sapiens International NV's Peter Lynch Fair Value compare to ALKT and VIA?
Sapiens International NV's Peter Lynch Fair Value of €11.81 can be compared against companies in the Software industry. The industry median Peter Lynch Fair Value is 1.25. Historically, Sapiens International NV's own Peter Lynch Fair Value has ranged from 0.62 to 4.83 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Peter Lynch Fair Value for a Software company?
The median Peter Lynch Fair Value among Software companies is 1.25, based on 679 companies in the industry. Companies in the top quartile (top 25%) have a Peter Lynch Fair Value significantly above this median, while those in the bottom quartile fall well below. However, Peter Lynch Fair Value 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 Peter Lynch Fair Value mean?
A high Peter Lynch Fair Value can signal that a stock is expensive relative to its fundamentals. Peter Lynch Fair Value is the stock value based on a company's current earnings and five-year earnings growth, assuming a PEG of one. View historical data on Sapiens International NV and its competitors. For the Software industry, the median Peter Lynch Fair Value is 1.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sapiens International NV's current Peter Lynch Fair Value is €11.81, which is 732% above median its own 10-year median of 1.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sapiens International NV stock overvalued right now?
Sapiens International NV (FRA:S3P) has a current Peter Lynch Fair Value of €11.81. The stock's GF Value™ is €26.65, compared to a current price of €36.80 — trading 38.1% above its estimated fair value. The current Peter Lynch Fair Value is €11.81, which is 732% above median its 10-year median of 1.42. Sapiens International NV's overall GF Score™ is 75/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Peter Lynch Fair Value calculated?
Peter Lynch Fair Value is calculated from a company's financial statements. For Sapiens International NV (FRA:S3P), the current Peter Lynch Fair Value is €11.81 as of Aug. 02, 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 Sapiens International NV (FRA:S3P) Overvalued in 2026?
Based on GuruFocus' analysis, Sapiens International NV stock appears to be overvalued.
The current stock price of €36.80 is trading 38.1% above its estimated GF Value™ of €26.65.
Key valuation signals for FRA:S3P:
Peter Lynch Fair Value: €11.81 (732% above median its 10-year median of 1.42)
GF Value™: €26.65 vs. price of €36.80 (38.1% above fair value)
No single metric tells the full story. See the FRA:S3P stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sapiens International Corp NV is a provider of software solutions for the insurance industry, with an emerging focus on the financial services sector. The company offers software, solutions, and professional services for property & casualty (P&C); reinsurance; life, pension & annuity (L&A); workers' compensation (WC); medical professional liability (MPL); financial & compliance (F&C); and decision modeling for both insurance and financial markets. The group also provides services for project delivery and implementation services, for its Software Solutions portfolio. Geographically, it operates in the region of North America, Rest of the World, and Europe. It generates revenue from Europe.
75GF Score
Get the complete analysis for FRA:S3P
Peter Lynch Fair Value is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:S3P has been successfully added to your 
