MGIC Relative Valuation
MGIC's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, MGIC is overvalued; if below, it's undervalued.
Historical Valuation
Magic Software Enterprises Ltd (MGIC) is now in the Overvalued zone, suggesting that its current forward PE ratio of 22.13 is considered Overvalued compared with the five-year average of 15.16. The fair price of Magic Software Enterprises Ltd (MGIC) is between 13.74 to 20.06 according to relative valuation methord. Compared to the current price of 24.58 USD , Magic Software Enterprises Ltd is Overvalued By 22.54%.
Relative Value
Fair Zone
13.74-20.06
Current Price：24.58
22.54%
Overvalued
22.72
PE
1Y
3Y
5Y
Trailing
Forward
0.00
EV/EBITDA
Magic Software Enterprises Ltd. (MGIC) has a current EV/EBITDA of 0.00. The 5-year average EV/EBITDA is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward EV/EBITDA of 0.00 falls within the Strongly Undervalued range.
16.50
EV/EBIT
Magic Software Enterprises Ltd. (MGIC) has a current EV/EBIT of 16.50. The 5-year average EV/EBIT is 12.03. The thresholds are as follows: Strongly Undervalued below 7.51, Undervalued between 7.51 and 9.77, Fairly Valued between 14.29 and 9.77, Overvalued between 14.29 and 16.55, and Strongly Overvalued above 16.55. The current Forward EV/EBIT of 16.50 falls within the Overvalued range.
1.85
PS
Magic Software Enterprises Ltd. (MGIC) has a current PS of 1.85. The 5-year average PS is 1.39. The thresholds are as follows: Strongly Undervalued below 0.69, Undervalued between 0.69 and 1.04, Fairly Valued between 1.74 and 1.04, Overvalued between 1.74 and 2.09, and Strongly Overvalued above 2.09. The current Forward PS of 1.85 falls within the Overvalued range.
0.00
P/OCF
Magic Software Enterprises Ltd. (MGIC) has a current P/OCF of 0.00. The 5-year average P/OCF is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward P/OCF of 0.00 falls within the Strongly Undervalued range.
0.00
P/FCF
Magic Software Enterprises Ltd. (MGIC) has a current P/FCF of 0.00. The 5-year average P/FCF is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward P/FCF of 0.00 falls within the Strongly Undervalued range.
Magic Software Enterprises Ltd (MGIC) has a current Price-to-Book (P/B) ratio of 4.37. Compared to its 3-year average P/B ratio of 2.49 , the current P/B ratio is approximately 75.88% higher. Relative to its 5-year average P/B ratio of 2.84, the current P/B ratio is about 53.82% higher. Magic Software Enterprises Ltd (MGIC) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 10.63%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 8.30% , the current FCF yield is about -100.00% lower.
4.49
P/B
Median3y
2.49
Median5y
2.84
5.34
FCF Yield
Median3y
10.63
Median5y
8.30
Competitors Valuation Multiple
The average P/S ratio for MGIC's competitors is , providing a benchmark for relative valuation. Magic Software Enterprises Ltd Corp (MGIC) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 13.07%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of MGIC increased by 119.39% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 15.15 to 31.06.
The secondary factor is the Revenue Growth, contributed 13.07%to the performance.
Overall, the performance of MGIC in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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