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Formula Systems (1985)FRA:FSY +3.55%71 Shiller PE Ratio is 16.61 as of Aug. 31, 2026, which is 35% below its 10-year median of 25.71. GuruFocus rates FRA:FSY with a GF Score™ of 71/100 and a GF Value™ of €114.37 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,022 Software companies, Formula Systems (1985) ranks better than 70.74% on this metric.
The historical rank and industry rank for Formula Systems (1985)'s Shiller PE Ratio or its related term are showing as below:
FRA:FSY'
s Shiller PE Ratio Range Over the Past 10 Years
Min: 13.58 Med: 25.71 Max: 52.83
Current: 16.66
During the past years, Formula Systems (1985)'s highest Shiller PE Ratio was 52.83. The lowest was 13.58. And the median was 25.71.
FRA:FSY's Shiller PE Ratio is ranked better than 70.74% of 1022
companies
in the Software industry
Industry Median: 27.635
vs FRA:FSY: 16.66
E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.
Formula Systems (1985)'s adjusted earnings per share data for the three months ended in Jun. 2026 was €1.276. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is €6.14 for the trailing ten years ended in Jun. 2026.
Shiller PE for Stocks: The True Measure of Stock Valuation
Formula Systems (1985) (FRA:FSY) Shiller PE Ratio Explanation
Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.
Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.
Be Aware
Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.
Formula Systems (1985) Shiller PE Ratio Related Terms
Formula Systems (1985) Shiller PE Ratio Historical Data
* Premium members only.
The historical data trend for Formula Systems (1985)'s Shiller PE 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.
FRA:FSY vs IBM, ACN, CTSH: Shiller PE Ratio Comparison
For the Information Technology Services subindustry, Formula Systems (1985)'s Shiller PE Ratio, along with its competitors' market caps and Shiller PE 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) Shiller PE Ratio vs Software Industry
For the Software industry and Technology sector, Formula Systems (1985)'s Shiller PE Ratio distribution charts can be found below:
* The bar in red indicates where Formula Systems (1985)'s Shiller PE Ratio falls into.
Formula Systems (1985) Shiller PE Ratio Calculation
For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.
* 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.
Add all the adjusted EPS together and divide 10 will get our E10.
Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.
Formula Systems (1985) (FRA:FSY) has a Shiller PE Ratio of 16.61 as of Aug. 31, 2026. Shiller price-earnings ratio is the ratio of share price to a company's inflation-adjusted earnings over a 10-year period. View historical data on Formula Systems (1985) and its competitors. This is 35% below median its historical median of 25.71. Over the past decade, Formula Systems (1985)'s Shiller PE Ratio has ranged from 13.58 to 52.83. According to the industry distribution chart, Formula Systems (1985) ranks #299 out of 1022 companies in the Software industry, placing it in the top 29.3%.
Is Formula Systems (1985)'s Shiller PE Ratio too high?
Formula Systems (1985)'s current Shiller PE Ratio of 16.61 is 35% below median its 10-year median of 25.71. Over the past 10 years, this metric has ranged from a low of 13.58 to a high of 52.83. The Software industry median Shiller PE Ratio is 27.64. Formula Systems (1985)'s value of 16.61 is 39.9% below this industry median. Based on the distribution chart, Formula Systems (1985) ranks #299 out of 1022 companies in the Software industry, which is above the industry midpoint. 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 Shiller PE Ratio compare to IBM and ACN?
According to the Software industry distribution chart, Formula Systems (1985) ranks #299 out of 1022 companies for Shiller PE Ratio. This puts Formula Systems (1985) in the upper half of its industry. The industry median Shiller PE Ratio is 27.64. Formula Systems (1985)'s value of 16.61 is 39.9% below this benchmark. Historically, Formula Systems (1985)'s own Shiller PE Ratio has ranged from 13.58 to 52.83 over the past decade. While the company's 10-year median is 25.71 vs. the industry median of 27.64, 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 Shiller PE Ratio for a Software company?
The median Shiller PE Ratio among Software companies is 27.64, based on 1,022 companies in the industry. Companies in the top quartile (top 25%) have a Shiller PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Shiller PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formula Systems (1985)'s current Shiller PE Ratio of 16.61 is 39.9% 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 Shiller PE Ratio mean?
A high Shiller PE Ratio can signal that a stock is expensive relative to its fundamentals. Shiller price-earnings ratio is the ratio of share price to a company's inflation-adjusted earnings over a 10-year period. View historical data on Formula Systems (1985) and its competitors. For the Software industry, the median Shiller PE Ratio is 27.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formula Systems (1985)'s current Shiller PE Ratio is 16.61, which is 35% below median its own 10-year median of 25.71. 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 €114.37, compared to a current price of €102.00 — trading 10.8% below its estimated fair value. The current Shiller PE Ratio is 16.61, which is 35% below median its 10-year median of 25.71 and 39.9% below the Software industry median of 27.64. 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 Shiller PE Ratio calculated?
Shiller PE Ratio is calculated from a company's financial statements. For Formula Systems (1985) (FRA:FSY), the current Shiller PE Ratio is 16.61 as of Aug. 31, 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 €102.00 is trading 10.8% below its estimated GF Value™ of €114.37.
GuruFocus considers Formula Systems (1985) to be Modestly Undervalued.
Key valuation signals for FRA:FSY:
Shiller PE Ratio: 16.61 (35% below median its 10-year median of 25.71)
GF Value™: €114.37 vs. price of €102.00 (10.8% below fair value)
Industry Position: 39.9% below the Software median (#299 of 1022)
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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