FORTY

Formula Systems (1985) Ltd.

Technology · $1.7B market cap

Verdict

Share price

$112.00

close of Oct 2, 2026

Fair value

$109.17

Sticker Price

Payback Price

$43.67

buy price

Fairly Valued

FORTY is Fairly Valued: at $112.00 it's within 3% of its fair value of $109.17. Its buy price (Payback Price) is $43.67, 61% below today's price. Business quality is mixed: 2 of 5 key numbers clear the 10% bar.

How we valued it

Free Cash Flow. Sales grew 1% a year over the last 3 years, below the 15% we look for in a fast grower, so we value it on its free cash flow instead of an earnings forecast.

Business quality

2 of 5 clear the 10% bar. What are the Big Five?

Earnings per share growth8.7% a year✗
Equity per share growth7.7% a year✗
Sales growth11.6% a year✓
Free cash flow growth13.9% a year✓
Return on invested capital8.0%✗

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About Formula Systems (1985) Ltd.

Formula Systems (1985) Ltd. is a global provider of diverse IT solutions and services, operating through its various subsidiaries. The company specializes in delivering both its own proprietary software and third-party solutions, alongside comprehensive IT professional services, software product marketing and support, and integrated computer infrastructure solutions. Its extensive range of offerings includes robust…

Information Technology Services

Fair value and Payback Price are estimates from the company's reported financials, not investment advice. Prices as of the close of Oct 2, 2026. How the Payback Price works