Formula Systems (1985)FRA:FSY -5.71%69 PS Ratio is 0.53 as of Jun. 30, 2026, which is 23% below its 10-year median of 0.69. GuruFocus rates FRA:FSY with a GF Score™ of 69/100 and a GF Value™ of €112.49 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 2,773 Software companies, Formula Systems (1985) ranks better than 83.92% on this metric.
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Formula Systems (1985)'s share price is €82.50.
Formula Systems (1985)'s Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2026 was €156.98. Hence, Formula Systems (1985)'s PS Ratio for today is 0.53.
Good Sign:
Formula Systems (1985) Ltd stock PS Ratio (=0.56) is close to 2-year low of 0.55.
The historical rank and industry rank for Formula Systems (1985)'s PS Ratio or its related term are showing as below:
FRA:FSY'
s PS Ratio Range Over the Past 10 Years
Min: 0.44 Med: 0.69 Max: 1.16
Current: 0.56
During the past 13 years, Formula Systems (1985)'s highest PS Ratio was 1.16. The lowest was 0.44. And the median was 0.69.
FRA:FSY's PS Ratio is ranked better than 83.92% of 2773
companies
in the Software industry
Industry Median: 2.02
vs FRA:FSY: 0.56
During the past 12 months, the average Revenue per Share Growth Rate of Formula Systems (1985) was 18.80% per year.
During the past 3 years, the average Revenue per Share Growth Rate was 0.10% per year.
During the past 5 years, the average Revenue per Share Growth Rate was 2.60% per year.
During the past 10 years, the average Revenue per Share Growth Rate was 9.50% per year.
During the past 13 years, Formula Systems (1985)'s highest 3-Year average Revenue per Share Growth Rate was 27.70% per year. The lowest was -8.00% per year. And the median was 6.60% per year.
Back to Basics: PS Ratio
Formula Systems (1985) (FRA:FSY) PS Ratio Explanation
The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.
When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.
The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.
* 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 PS Ratio, along with its competitors' market caps and PS 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) PS Ratio vs Software Industry
For the Software industry and Technology sector, Formula Systems (1985)'s PS Ratio distribution charts can be found below:
* The bar in red indicates where Formula Systems (1985)'s PS Ratio falls into.
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.
Formula Systems (1985)'s Share Price of today is €82.50. Formula Systems (1985)'s Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €156.98.
* 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:
Formula Systems (1985) (FRA:FSY) has a PS Ratio of 0.53 as of Jun. 30, 2026. Price-to-Sales ratio is the ratio of share price to a company's revenue per share. View historical data on Formula Systems (1985) and its competitors. This is 23% below median its historical median of 0.69. Over the past decade, Formula Systems (1985)'s PS Ratio has ranged from 0.44 to 1.16. According to the industry distribution chart, Formula Systems (1985) ranks #446 out of 2773 companies in the Software industry, placing it in the top 16.1%.
Is Formula Systems (1985)'s PS Ratio too high?
Formula Systems (1985)'s current PS Ratio of 0.53 is 23% below median its 10-year median of 0.69. Over the past 10 years, this metric has ranged from a low of 0.44 to a high of 1.16. The Software industry median PS Ratio is 2.02. Formula Systems (1985)'s value of 0.53 is 73.8% below this industry median. Based on the distribution chart, Formula Systems (1985) ranks #446 out of 2773 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Formula Systems (1985) has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Formula Systems (1985)'s PS Ratio compare to IBM and ACN?
According to the Software industry distribution chart, Formula Systems (1985) ranks #446 out of 2773 companies for PS Ratio. This places Formula Systems (1985) in the top 16% of its industry — outperforming the majority of peers. The industry median PS Ratio is 2.02. Formula Systems (1985)'s value of 0.53 is 73.8% below this benchmark. Historically, Formula Systems (1985)'s own PS Ratio has ranged from 0.44 to 1.16 over the past decade. While the company's 10-year median is 0.69 vs. the industry median of 2.02, Formula Systems (1985) has consistently been below 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 PS Ratio for a Software company?
The median PS Ratio among Software companies is 2.02, based on 2,773 companies in the industry. Companies in the top quartile (top 25%) have a PS Ratio significantly above this median, while those in the bottom quartile fall well below. However, PS Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formula Systems (1985)'s current PS Ratio of 0.53 is 73.8% below 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 PS Ratio mean?
A high PS Ratio can signal that a stock is expensive relative to its fundamentals. Price-to-Sales ratio is the ratio of share price to a company's revenue per share. View historical data on Formula Systems (1985) and its competitors. For the Software industry, the median PS Ratio is 2.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formula Systems (1985)'s current PS Ratio is 0.53, which is 23% below median its own 10-year median of 0.69. 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 €112.49, compared to a current price of €82.50 — trading 26.7% below its estimated fair value. The current PS Ratio is 0.53, which is 23% below median its 10-year median of 0.69 and 73.8% below the Software industry median of 2.02. Formula Systems (1985)'s overall GF Score™ is 69/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PS Ratio calculated?
PS Ratio is calculated from a company's financial statements. For Formula Systems (1985) (FRA:FSY), the current PS Ratio is 0.53 as of Jun. 30, 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 €82.50 is trading 26.7% below its estimated GF Value™ of €112.49.
GuruFocus considers Formula Systems (1985) to be Modestly Undervalued.
Key valuation signals for FRA:FSY:
PS Ratio: 0.53 (23% below median its 10-year median of 0.69)
GF Value™: €112.49 vs. price of €82.50 (26.7% below fair value)
Industry Position: 73.8% below the Software median (#446 of 2773)
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.
69GF Score
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