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STOCK COMPARISON

Formula Systems 1985 Ltd vs International Business Machines: Fair Value & Quality

Both stocks run through our valuation models. Here is how Formula Systems 1985 Ltd (FORTY) and International Business Machines (IBM) compare, as of Aug 10, 2026.

As of Aug 10, 2026, Fair Value Calculator sees International Business Machines as the less overvalued of the two: Formula Systems 1985 Ltd trades at $109 versus a fair value of $52.02 (-52%), while International Business Machines trades at $237 versus $144 (-39%).
Formula Systems 1985 Ltd
FORTY · USD · Information Technology
-52%
upside to fair value
overvalued
Price$109
Fair Value$52.02
Quality53/100
International Business Machines
IBM · USD · Information Technology
-39%
upside to fair value
overvalued
Price$237
Fair Value$144
Quality67/100

Head-to-head numbers

Green value = the better side for that row (for valuation multiples: lower = cheaper).

Formula Systems 1985 LtdInternational Business Machines
Valuation
29.7×P/E (TTM)25.7×
—P/S (TTM)2.96×
—P/B6.25×
—EV/EBITDA14.8×
4.07×PEG2.71×
2.1%Dividend yield2.3%
—Dividend per share$6.72
Profitability
23%Net margin16%
11%Operating margin14%
9%Return on equity36%
4%Return on assets5%
Growth
19%Revenue growth (YoY)10%
1.0%Avg. growth/yr (3Y)3.7%
6.5%Avg. growth/yr (5Y)-1.7%
Balance & size
0.14×Debt / equity1.68×
$2BMarket cap$204B
mixedGrowth qualityweak

International Business Machines leads: 4 to 7 metric wins.

Dash = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

Formula Systems 1985 Ltdof which business quality 54 · market factors 44 International Business Machinesof which business quality 61 · market factors 41
ProfitabilityMargins and returns on capital today
27
59
Quality GrowthAre margins and returns improving?
15
68
CashflowEarnings quality: real cash, not paper profit
80
70
Fin. StrengthBalance sheet, leverage, solvency risk
67
39
InvestmentDisciplined investing over empire-building
52
66
Low VolatilityCalm price path (market factor)
50
54
MomentumPrice trend over the last 3–12 months (market factor)
40
42
52W MomentumDistance to the 52-week high (market factor)
43
26
Net IssuanceBuybacks instead of dilution
74
69

What the models say

The median fair value (base case) per model family, each in the currency of its trading venue. Green = above the current price, red = below.

Formula Systems 1985 Ltd

DCF Models$330
Earnings-Based$35.38
Dividend Discount$25.23
Multiples$134
Asset-Based$59.13
Growth DCF$383
Economic Profit$113
Growth Earnings$31.30

11 of 26 models see the stock below the current price.

International Business Machines

DCF Models$137
Earnings-Based$84.63
Dividend Discount$76.30
Multiples$161
Asset-Based$23.27
Growth DCF$125
Economic Profit$84.51
Growth Earnings$171

24 of 24 models see the stock below the current price.

Scenario ranges

From our cautious bear case to the optimistic bull case. The white tick is the current price: left of fair value means room to run.

Formula Systems 1985 Ltd
Bear $27.77Fair Value $52.02Bull $52.02
$109 = current price (white tick)
International Business Machines
Bear $89.31Fair Value $144Bull $208
$237 = current price (white tick)

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

Formula Systems 1985 Ltd · Information Technology

Quality score53 · below median
Fair value upside-52% · below median

International Business Machines · Information Technology

Quality score67 · Top 25%
Fair value upside-39% · below median

Bottom line

As of Aug 10, 2026, Fair Value Calculator sees International Business Machines as the less overvalued of the two: Formula Systems 1985 Ltd trades at $109 versus a fair value of $52.02 (-52%), while International Business Machines trades at $237 versus $144 (-39%).

International Business Machines has the higher quality score (67/100).

See the full analysis →
Formula Systems 1985 Ltd · International Business Machines

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A model-based valuation snapshot from 21 models. Values change with price and fundamentals; the date shown above applies.