Formula Systems (1985) Ltd (FORTY) Fair Value & Analysis

Technology · US · Market cap $1.7B

A solid business, but screening 52% overvalued on our models.

What matters now

• The price sits above even our optimistic bull case ($52.02). The favourable scenario is already priced in.
• Solid but not exceptional quality (53/100) and above fair value, neither a clear bargain nor a standout compounder.
• A fairly wide model range ($27.77 to $52.02) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 24, 2026.

How to read this chart

60‑month range $27.06 – $177.15 · fair‑value band $27.77 – $52.02 · the $108.75 price screens above the $52.02 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 24, 2026.

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Analysis

Formula Systems (1985) Ltd (FORTY) currently trades at $108.75, while our model-based Fair Value estimate is $52.02, implying the stock looks roughly 52.2% overvalued today. The Quality Score stands at 53/100 (solid quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, Formula Systems (1985) Ltd generated revenue of $2.7B at a net margin of 22.7%. Revenue grew 19.2% year over year. It earns a return on equity of 8.7%. The balance sheet holds a net cash position of $688M. Fundamentals as of Jul 24, 2026

Our scenario range runs from $27.77 (bear case) to $52.02 (bull case); at $108.75, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 39% below its 52-week high and 9% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -25% fair-value upside, at -52%, FORTY screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: Growth DCF ($316.49) versus Earnings-Based ($18.73). Highest evidence: Growth DCF (80).

Key figures & financial health

Quality Score breakdown

About the company

Formula Systems (1985) Ltd., through its subsidiaries, provides proprietary and non-proprietary software solutions and information technologies (IT) professional services in Israel, the United States, Europe, Africa, Japan, and internationally.

Full company description

Formula Systems (1985) Ltd., through its subsidiaries, provides proprietary and non-proprietary software solutions and information technologies (IT) professional services in Israel, the United States, Europe, Africa, Japan, and internationally. The company also offers software product marketing and support, computer infrastructure and integration solutions, and learning and integration. In addition, it provides IT software solutions and services, and consulting and management services; computer and communication infrastructure solutions; and software solutions, web world content management, database and data warehouse mining, application integration, database and systems, data management, and software development tools. Further, the company offers Sapiens software solutions, such as Sapiens CoreSuite and Sapiens IDITSuite for property and Casualty insurance; Sapiens Platform, Sapiens CoreSuite, Sapiens UnderwritingPro, Sapiens ApplicationPro, Sapiens IllustrationPro, and Sapiens ConsolidationMaster for life, pension, and annuities; Sapiens Digital Suite; Data and Analytics platform; and Sapiens ReinsuranceMaster, Sapiens ReinsurancePro, and Sapiens Reinsurance GO for reinsurance. Additionally, it provides Sapiens workers' compensation platform; Sapiens Medical Professional Liability solution; Sapiens FinancialPro, Sapiens Financial GO, Sapiens StatementPro, Sapiens CheckPro and Sapiens Reporting Tools for financial and compliance; Sapiens Decision platform; and technology-based solutions. The company also application development and business process integration platforms; vertical software solutions; cloud-based services; strategic consulting and outsourcing, and professional services, as well as cloud computing solutions; and sells and markets computers and peripheral equipment. The company was incorporated in 1985 and is headquartered in Or Yehuda, Israel.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Formula Systems (1985) Ltd reported revenue of $2.6B in FY2025 versus $2.4B in FY2021, a compound +2.4%/yr. Reported net income was $28.4M in FY2025, compounding −15.1%/yr from FY2021.

FORTY screens 52% overvalued. Compare with International Business Machines Corporation →

Peer Group

Information Technology Services · 480 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Valuation Multiples vs Information Technology Services median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.