Formula Systems (1985) Ltd.

MUN:FSY Stock Report

Market Cap: €979.9m

Formula Systems (1985) Valuation

Is FSY undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of FSY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FSY (€64) is trading below our estimate of fair value (€120.54)

Significantly Below Fair Value: FSY is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FSY?

Key metric: As FSY is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for FSY. This is calculated by dividing FSY's market cap by their current earnings.
What is FSY's PE Ratio?
PE Ratio13.1x
EarningsUS$80.84m
Market CapUS$1.06b

Price to Earnings Ratio vs Peers

How does FSY's PE Ratio compare to its peers?

The above table shows the PE ratio for FSY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.7x
SANT Kontron
12.3x19.1%€1.0b
NA9 Nagarro
23.5x17.1%€1.3b
COK Cancom
18.7x1.1%€760.8m
GFT GFT Technologies
12.1x12.3%€577.9m
FSY Formula Systems (1985)
13.1xn/a€3.9b

Price-To-Earnings vs Peers: FSY is good value based on its Price-To-Earnings Ratio (13.1x) compared to the peer average (29x).

Price to Earnings Ratio vs Industry

How does FSY's PE Ratio compare vs other companies in the DE IT Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
FSY 13.1xIndustry Avg. 17.8xNo. of Companies4PE01224364860+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: FSY is good value based on its Price-To-Earnings Ratio (13.1x) compared to the German IT industry average (21.4x).

Price to Earnings Ratio vs Fair Ratio

What is FSY's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FSY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.1x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate FSY's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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