Formula Systems Valuation
| FORTY Stock | USD 74.60 2.66 3.44% |
At this time, the firm appears to be fairly valued. Formula Systems 1985 shows a prevailing Real Value of $73.01 per share. The current price of the firm is $74.6. Our model computes the value of Formula Systems 1985 from reviewing the firm fundamentals such as Profit Margin of 0.02 %, current valuation of 2.01 B, and Shares Outstanding of 15.33 M as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors advise acquiring undervalued instruments and dropping overvalued instruments since, at some point, asset prices and their ongoing real values will submerge. Key fundamental drivers impacting Formula Systems' valuation include:
Price Book 2.0845 | Enterprise Value 2 B | Enterprise Value Ebitda 5.9711 | Price Sales 0.4639 | Trailing PE 18.9828 |
Fairly Valued
Today
Please note that Formula Systems' price fluctuation is very steady at this time. Calculation of the real value of Formula Systems 1985 is based on 3 months time horizon. Increasing Formula Systems' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Formula Systems 1985 is useful when determining the fair value of the Formula stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Formula Systems. Since Formula Systems is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Formula Stock. However, Formula Systems' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 74.6 | Real 73.01 | Hype 74.43 | Naive 72.71 |
The real value of Formula Stock, also known as its intrinsic value, is the underlying worth of Formula Systems 1985 Company, which is reflected in its stock price. It is based on Formula Systems' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Formula Systems' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Formula Systems' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Formula Systems 1985 helps investors to forecast how Formula stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Formula Systems more accurately as focusing exclusively on Formula Systems' fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Formula Systems' intrinsic value based on its ongoing forecasts of Formula Systems' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Formula Systems' closest peers. When choosing an evaluation method for Formula Systems 1985, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Formula Systems Investments |
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Formula Valuation Trend
Knowing Formula Systems' actual value is paramount for traders to make sound investment determinations. Formula Systems' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Formula Systems' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Formula Systems' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Formula Market Cap
Formula Systems 1985 is rated # 5 in market capitalization category among related companies. Market capitalization of Information Technology industry is currently estimated at about 47.83 Billion. Formula Systems holds roughly 1.18 Billion in market capitalization claiming about 2.48% of equities under Information Technology industry.Formula Systems Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Formula Systems's current stock value. Our valuation model uses many indicators to compare Formula Systems value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Formula Systems competition to find correlations between indicators driving Formula Systems's intrinsic value. More Info.Formula Systems 1985 is rated # 2 in price to earning category among related companies. It is rated # 4 in price to book category among related companies fabricating about 0.08 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Formula Systems 1985 is roughly 13.14 . Price To Book Ratio is likely to drop to 1.07 in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value Formula Systems by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Formula Systems' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Formula Systems' earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Formula Systems' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Formula Systems and how it compares across the competition.
About Formula Systems Valuation
The stock valuation mechanism determines the current worth of Formula Systems 1985 on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Formula Systems 1985. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Formula Systems 1985 based exclusively on its fundamental and basic technical indicators. By analyzing Formula Systems's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Formula Systems's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Formula Systems. We calculate exposure to Formula Systems's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Formula Systems's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 643.7 M | 675.9 M | |
| Pretax Profit Margin | 0.08 | 0.05 | |
| Operating Profit Margin | 0.09 | 0.1 | |
| Net Profit Margin | 0.02 | 0.03 | |
| Gross Profit Margin | 0.25 | 0.31 |
Formula Systems Quarterly Retained Earnings |
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8 Steps to conduct Formula Systems' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Formula Systems' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Formula Systems' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Formula Systems' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Formula Systems' revenue streams: Identify Formula Systems' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Formula Systems' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Formula Systems' growth potential: Evaluate Formula Systems' management, business model, and growth potential.
- Determine Formula Systems' financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Formula Systems' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Formula Systems represents a small ownership stake in the entity. As a stockholder of Formula, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Formula Systems Dividends Analysis For Valuation
Please note that Formula Systems has scaled down on payment of dividends at this time. At this time, Formula Systems' Retained Earnings are fairly stable compared to the past year. Earnings Yield is likely to rise to 0.07 in 2024, whereas Price Earnings Ratio is likely to drop 14.83 in 2024.
There are various types of dividends Formula Systems can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Formula shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Formula Systems 1985 directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Formula pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Formula Systems by the value of the dividends paid out.
Formula Systems Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Formula Systems does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 15.5 M | |
| Quarterly Earnings Growth Y O Y | 0.04 |
Formula Systems Current Valuation Indicators
Valuation refers to the process of determining the present value of Formula Systems 1985 and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Formula we look at many different elements of the entity such as Formula's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Formula Systems' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Formula Systems' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Formula Systems, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Formula Systems' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Formula Systems' worth.When determining whether Formula Systems 1985 offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Formula Systems' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Formula Systems 1985 Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Formula Systems 1985 Stock: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Formula Systems 1985. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in estimate. You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Complementary Tools for Formula Stock analysis
When running Formula Systems' price analysis, check to measure Formula Systems' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Formula Systems is operating at the current time. Most of Formula Systems' value examination focuses on studying past and present price action to predict the probability of Formula Systems' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Formula Systems' price. Additionally, you may evaluate how the addition of Formula Systems to your portfolios can decrease your overall portfolio volatility.
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Is Formula Systems' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Formula Systems. If investors know Formula will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Formula Systems listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.04 | Dividend Share 1.277 | Earnings Share 4.07 | Revenue Per Share 171.285 | Quarterly Revenue Growth 0.01 |
The market value of Formula Systems 1985 is measured differently than its book value, which is the value of Formula that is recorded on the company's balance sheet. Investors also form their own opinion of Formula Systems' value that differs from its market value or its book value, called intrinsic value, which is Formula Systems' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Formula Systems' market value can be influenced by many factors that don't directly affect Formula Systems' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Formula Systems' value and its price as these two are different measures arrived at by different means. Investors typically determine if Formula Systems is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Formula Systems' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.