Latest Ratios: P/E Ratio 62.8x · EV/EBITDA 3.1x · ROE 1.8%. (1998–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.7B | $2.6B | $1.4B | $1.0B | $1.1B | $1.9B | $1.3B | $1.0B | $555M | $597M | $616M |
| Enterprise Value | $1.0B | $1.9B | $1.6B | $1.2B | $1.3B | $2.1B | $1.5B | $1.3B | $668M | $696M | $637M |
| P/E Ratio → | 62.78 | 92.79 | 17.49 | 15.85 | 13.61 | 35.42 | 28.41 | 11.30 | 17.22 | 54.80 | 26.64 |
| P/S Ratio | 0.65 | 1.00 | 0.50 | 0.39 | 0.43 | 0.79 | 0.68 | 0.62 | 0.37 | 0.44 | 0.56 |
| P/B Ratio | 1.00 | 1.48 | 1.00 | 0.77 | 0.93 | 1.62 | 1.18 | 1.17 | 0.69 | 0.77 | 0.85 |
| P/FCF | 4.62 | 7.03 | 4.71 | 3.85 | 5.50 | 10.76 | 5.07 | 6.56 | 8.96 | 9.62 | 11.07 |
| P/OCF | 4.43 | 6.74 | 4.29 | 3.43 | 4.60 | 9.16 | 4.56 | 5.34 | 6.72 | 7.37 | 8.22 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.74 | 0.57 | 0.47 | 0.52 | 0.89 | 0.76 | 0.75 | 0.45 | 0.51 | 0.57 |
| EV / EBITDA | 3.05 | 5.69 | 4.08 | 3.41 | 3.39 | 6.47 | 5.54 | 9.25 | 4.22 | 5.93 | 5.27 |
| EV / EBIT | 5.54 | 10.33 | 5.82 | 4.93 | 4.71 | 10.15 | 8.64 | 9.25 | 5.87 | 11.19 | 7.50 |
| EV / FCF | — | 5.20 | 5.32 | 4.68 | 6.64 | 12.05 | 5.71 | 8.03 | 10.77 | 11.21 | 11.44 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 17.0% | 17.0% | 24.8% | 24.6% | 24.2% | 23.4% | 23.1% | 22.7% | 22.3% | 21.9% | 23.3% |
| Operating Margin | 7.1% | 7.1% | 9.8% | 9.1% | 10.8% | 8.6% | 8.8% | 3.0% | 7.3% | 5.4% | 8.0% |
| Net Profit Margin | 1.1% | 1.1% | 2.9% | 2.4% | 3.2% | 2.3% | 2.4% | 5.4% | 2.2% | 0.8% | 2.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 1.8% | 1.8% | 5.9% | 5.2% | 6.9% | 4.8% | 4.7% | 10.9% | 4.1% | 1.5% | 3.2% |
| ROA | 0.9% | 0.9% | 2.7% | 2.3% | 2.9% | 2.1% | 2.0% | 4.9% | 2.0% | 0.8% | 1.7% |
| ROIC | 10.6% | 10.6% | 13.1% | 12.2% | 14.8% | 11.6% | 10.6% | 3.8% | 9.2% | 6.8% | 9.2% |
| ROCE | 9.1% | 9.1% | 14.6% | 13.2% | 15.4% | 11.7% | 10.8% | 4.0% | 9.6% | 6.9% | 9.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.33 | 0.33 | 0.50 | 0.51 | 0.66 | 0.60 | 0.60 | 0.67 | 0.47 | 0.45 | 0.36 |
| Debt / EBITDA | 1.73 | 1.73 | 1.79 | 1.85 | 1.97 | 2.16 | 2.51 | 4.36 | 2.41 | 2.94 | 2.14 |
| Net Debt / Equity | — | -0.39 | 0.13 | 0.17 | 0.19 | 0.19 | 0.15 | 0.26 | 0.14 | 0.13 | 0.03 |
| Net Debt / EBITDA | -2.01 | -2.01 | 0.47 | 0.60 | 0.58 | 0.69 | 0.63 | 1.69 | 0.71 | 0.84 | 0.17 |
| Debt / FCF | — | -1.84 | 0.61 | 0.83 | 1.14 | 1.28 | 0.65 | 1.47 | 1.82 | 1.60 | 0.37 |
| Interest Coverage | 6.15 | 6.15 | 12.22 | 6.50 | 11.29 | 7.96 | 6.64 | 6.48 | 7.71 | 2.14 | 5.67 |
Net cash position: cash ($1.3B) exceeds total debt ($592M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.63 | 1.63 | 1.30 | 1.40 | 1.37 | 1.38 | 1.49 | 1.44 | 1.48 | 1.69 | 1.76 |
| Quick Ratio | 1.61 | 1.61 | 1.28 | 1.35 | 1.33 | 1.35 | 1.46 | 1.43 | 1.48 | 1.69 | 1.75 |
| Cash Ratio | 0.96 | 0.96 | 0.49 | 0.54 | 0.57 | 0.54 | 0.68 | 0.60 | 0.56 | 0.64 | 0.77 |
| Asset Turnover | — | 0.74 | 0.91 | 0.93 | 0.92 | 0.88 | 0.77 | 0.81 | 0.90 | 0.87 | 0.82 |
| Inventory Turnover | 72.62 | 72.62 | 67.48 | 47.07 | 55.42 | 86.78 | 61.97 | 183.77 | 298.73 | 320.80 | 214.99 |
| Days Sales Outstanding | — | 106.75 | 110.95 | 100.41 | 102.88 | 109.18 | 104.96 | 110.08 | 111.61 | 108.84 | 108.31 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.6% | 1.1% | 1.4% | 1.0% | 2.0% | 1.2% | 1.1% | 1.2% | 0.9% | 2.0% | 1.6% |
| Payout Ratio | 101.7% | 101.7% | 23.6% | 15.5% | 26.8% | 40.5% | 31.9% | 14.0% | 15.6% | 108.0% | 44.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.6% | 1.1% | 5.7% | 6.3% | 7.3% | 2.8% | 3.5% | 8.9% | 5.8% | 1.8% | 3.8% |
| FCF Yield | 21.6% | 14.2% | 21.2% | 26.0% | 18.2% | 9.3% | 19.7% | 15.2% | 11.2% | 10.4% | 9.0% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 1.6% | 1.1% | 1.4% | 1.0% | 2.0% | 1.2% | 1.1% | 1.3% | 0.9% | 2.0% | 1.6% |
| Shares Outstanding | — | $16M | $16M | $15M | $16M | $15M | $15M | $15M | $16M | $15M | $16M |
Geopolitical and labor volatility
According to current market data, FORTY trades at a P/S of 0.55 and a P/FCF of 3.91, suggesting that investors are applying a significant conglomerate discount that may overlook the latent value of its specialized software subsidiaries compared to pure-play peers like NICE or Check Point.
The low valuation multiples appear to reflect market skepticism regarding the complexity of the federated business model rather than the underlying cash-generating potential of its core assets. Investors should monitor whether the current discount persists as the company continues to integrate its software IP, as the current pricing may not fully account for the resilience of its recurring revenue streams.
Based on reported figures, ROIC has remained in a narrow range between 1.7% and 3.5% over the last ten quarters, indicating that the company is struggling to compound returns on its invested capital despite its aggressive acquisition-led growth strategy within the IT services and software sectors.
The persistent gap between ROE and ROIC suggests that the company's capital allocation is heavily influenced by non-operating factors and minority interest accounting. This trend warrants further investigation into whether the current acquisition pace is diluting the overall return profile or if the integration of these assets is failing to drive meaningful margin expansion.
As reported in recent financial statements, the cash conversion cycle has fluctuated between 53 and 80 days over the past ten quarters, reflecting the inherent difficulty in managing working capital across a diverse portfolio of IT services and proprietary software licensing businesses.
The variability in DSO, which reached 126 days in 2025Q1, suggests that the company may be facing challenges in collecting receivables from its large-scale government and enterprise clients. This inefficiency appears to be a structural drag on cash flow, requiring management to tighten credit terms to improve overall operational liquidity.
According to the latest balance sheet data, the company maintains a D/E ratio of 0.33, which indicates a conservative approach to debt financing despite the significant capital requirements associated with its ongoing acquisition-led growth strategy across its various IT service and software subsidiaries.
The interest coverage ratio, which has remained above 6x in most recent periods, suggests that debt service remains comfortable even in a higher interest rate environment. However, investors should monitor the D/EBITDA ratio, which has shown volatility, as it may indicate that the company's ability to service debt is becoming more sensitive to fluctuations in operating performance.
The most commonly misapplied metric for FORTY is the consolidated net margin, which, at 1.07%, obscures the true earning power of the parent entity by failing to account for the significant net income attribution to non-controlling interests within its partially owned subsidiaries.
Analysts should instead focus on the net income attributable to Formula Systems shareholders to gain a clearer view of the parent's actual profitability. Relying on consolidated figures leads to an underestimation of the company's financial health and may result in an inaccurate assessment of its ability to fund future growth or return capital to shareholders.
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying FORTY stock.
Formula Systems (1985) Ltd.'s current P/E ratio is 62.8x. The historical average is 21.1x. This places it at the 92th percentile of its historical range.
Formula Systems (1985) Ltd.'s current EV/EBITDA is 3.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 5.1x.
Formula Systems (1985) Ltd.'s return on equity (ROE) is 1.8%. The historical average is 5.6%.
Based on historical data, Formula Systems (1985) Ltd. is trading at a P/E of 62.8x. This is at the 92th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Formula Systems (1985) Ltd.'s current dividend yield is 1.62% with a payout ratio of 101.7%.
Formula Systems (1985) Ltd. has 17.0% gross margin and 7.1% operating margin.
Formula Systems (1985) Ltd.'s Debt/EBITDA ratio is 1.7x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.