MGIC PE Ratio & Valuation,Is MGIC Overvalued

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 24.82 is considered Overvalued compared with the five-year average of 15.19. The fair price of Magic Software Enterprises Ltd (MGIC) is between 13.81 to 20.17 according to relative valuation methord. Compared to the current price of 27.24 USD , Magic Software Enterprises Ltd is Overvalued By 35.05%.

Relative Value

Fair Zone

13.81-20.17

Current Price：27.24

35.05%

Overvalued

24.82

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.

17.92

EV/EBIT

Magic Software Enterprises Ltd. (MGIC) has a current EV/EBIT of 17.92. The 5-year average EV/EBIT is 12.06. The thresholds are as follows: Strongly Undervalued below 7.46, Undervalued between 7.46 and 9.76, Fairly Valued between 14.36 and 9.76, Overvalued between 14.36 and 16.66, and Strongly Overvalued above 16.66. The current Forward EV/EBIT of 17.92 falls within the Strongly Overvalued range.

2.01

Magic Software Enterprises Ltd. (MGIC) has a current PS of 2.01. 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 1.75 and 1.04, Overvalued between 1.75 and 2.10, and Strongly Overvalued above 2.10. The current Forward PS of 2.01 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 4.85. Compared to its 3-year average P/B ratio of 2.50 , the current P/B ratio is approximately 93.65% higher. Relative to its 5-year average P/B ratio of 2.85, the current P/B ratio is about 69.77% 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 10.64%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 8.29% , the current FCF yield is about -100.00% lower.

4.85

P/B

Median3y

2.50

Median5y

2.85

4.91

FCF Yield

Median3y

10.64

Median5y

8.29

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

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of MGIC increased by 136.86% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 15.07 to 33.54.

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.

13.07%

142.97M → 161.66M

Revenue Growth

1.23%

7.30 → 7.39

Margin Expansion

122.56%

15.07 → 33.54

P/E Change

136.86%

11.50 → 27.24

Mkt Cap Growth

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Frequently Asked Questions

Is Magic Software Enterprises Ltd (MGIC) currently overvalued or undervalued?

What is Magic Software Enterprises Ltd (MGIC) fair value?

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. The fair price of Magic Software Enterprises Ltd (MGIC) is between 13.81 to 20.17 according to relative valuation methord.

How does MGIC's valuation metrics compare to the industry average?

What is the current P/B ratio for Magic Software Enterprises Ltd (MGIC) as of Dec 17 2025?

As of Dec 17 2025, Magic Software Enterprises Ltd (MGIC) has a P/B ratio of 4.85. This indicates that the market values MGIC at 4.85 times its book value.

What is the current FCF Yield for Magic Software Enterprises Ltd (MGIC) as of Dec 17 2025?

As of Dec 17 2025, Magic Software Enterprises Ltd (MGIC) has a FCF Yield of 0.00%. This means that for every dollar of Magic Software Enterprises Ltd’s market capitalization, the company generates 0.00 cents in free cash flow.

What is the current Forward P/E ratio for Magic Software Enterprises Ltd (MGIC) as of Dec 17 2025?

As of Dec 17 2025, Magic Software Enterprises Ltd (MGIC) has a Forward P/E ratio of 24.82. This means the market is willing to pay $24.82 for every dollar of Magic Software Enterprises Ltd’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Magic Software Enterprises Ltd (MGIC) as of Dec 17 2025?

As of Dec 17 2025, Magic Software Enterprises Ltd (MGIC) has a Forward P/S ratio of 0.00. This means the market is valuing MGIC at $0.00 for every dollar of expected revenue over the next 12 months.

MGIC Valuation

MGIC Valuation

MGIC Relative Valuation

Historical Valuation

Competitors Valuation Multiple

Performance Decomposition

People Also Watch

Frequently Asked Questions

Is Magic Software Enterprises Ltd (MGIC) currently overvalued or undervalued?

What is Magic Software Enterprises Ltd (MGIC) fair value?

How does MGIC's valuation metrics compare to the industry average?

What is the current P/B ratio for Magic Software Enterprises Ltd (MGIC) as of Dec 17 2025?

What is the current FCF Yield for Magic Software Enterprises Ltd (MGIC) as of Dec 17 2025?

What is the current Forward P/E ratio for Magic Software Enterprises Ltd (MGIC) as of Dec 17 2025?

What is the current Forward P/S ratio for Magic Software Enterprises Ltd (MGIC) as of Dec 17 2025?