Historical Valuation
Magic Software Enterprises Ltd (MGIC) is now in the Overvalued zone, suggesting that its current forward PE ratio of 23.74 is considered Overvalued compared with the five-year average of 15.24. The fair price of Magic Software Enterprises Ltd (MGIC) is between 14.10 to 20.81 according to relative valuation methord. Compared to the current price of 26.89 USD , Magic Software Enterprises Ltd is Overvalued By 29.16%.
Relative Value
Fair Zone
14.10-20.81
Current Price：26.89
29.16%
Overvalued
P/E
EV/EBITDA
EV/EBIT
P/S
P/OCF
P/FCF
1Y
3Y
5Y
Trailing
Forward
Magic Software Enterprises Ltd (MGIC) has a current Price-to-Book (P/B) ratio of 4.63. Compared to its 3-year average P/B ratio of 2.52 , the current P/B ratio is approximately 83.57% higher. Relative to its 5-year average P/B ratio of 2.87, the current P/B ratio is about 61.49% higher. Magic Software Enterprises Ltd (MGIC) has a Forward Free Cash Flow (FCF) yield of approximately 5.04%. Compared to its 3-year average FCF yield of 10.65%, the current FCF yield is approximately -52.64% lower. Relative to its 5-year average FCF yield of 8.27% , the current FCF yield is about -39.05% lower.
P/B
Median3y
2.52
Median5y
2.87
FCF Yield
Median3y
10.65
Median5y
8.27
Competitors Valuation Multiple
AI Analysis for MGIC
The average P/S ratio for MGIC competitors is 2.20, providing a benchmark for relative valuation. Magic Software Enterprises Ltd Corp (MGIC.O) exhibits a P/S ratio of 1.96, which is -10.7% above the industry average. Given its robust revenue growth of 13.07%, this premium appears unsustainable.
Performance Decomposition
AI Analysis for MGIC
1Y
3Y
5Y
Market capitalization of MGIC increased by 0.00% over the past 1 year. The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.
The secondary factor is the Unknown, contributed 0.00%to the performance.
Overall, the performance of MGIC in the past 1 year is driven by Unknown.
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Frequently Asked Questions
Is MGIC currently overvalued or undervalued?
Magic Software Enterprises Ltd (MGIC) is now in the Overvalued zone, suggesting that its current forward PE ratio of 23.74 is considered Overvalued compared with the five-year average of 15.24. The fair price of Magic Software Enterprises Ltd (MGIC) is between 14.10 to 20.81 according to relative valuation methord. Compared to the current price of 26.89 USD , Magic Software Enterprises Ltd is Overvalued By 29.16% .
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 14.10 to 20.81 according to relative valuation methord.
How does MGIC's valuation metrics compare to the industry average?
The average P/S ratio for MGIC's competitors is 2.20, providing a benchmark for relative valuation. Magic Software Enterprises Ltd Corp (MGIC) exhibits a P/S ratio of 1.96, which is -10.70% above the industry average. Given its robust revenue growth of 13.07%, this premium appears unsustainable.
What is the current P/B ratio for Magic Software Enterprises Ltd (MGIC) as of Jan 09 2026?
As of Jan 09 2026, Magic Software Enterprises Ltd (MGIC) has a P/B ratio of 4.63. This indicates that the market values MGIC at 4.63 times its book value.
What is the current FCF Yield for Magic Software Enterprises Ltd (MGIC) as of Jan 09 2026?
As of Jan 09 2026, Magic Software Enterprises Ltd (MGIC) has a FCF Yield of 5.04%. This means that for every dollar of Magic Software Enterprises Ltd’s market capitalization, the company generates 5.04 cents in free cash flow.
What is the current Forward P/E ratio for Magic Software Enterprises Ltd (MGIC) as of Jan 09 2026?
As of Jan 09 2026, Magic Software Enterprises Ltd (MGIC) has a Forward P/E ratio of 23.74. This means the market is willing to pay $23.74 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 Jan 09 2026?
As of Jan 09 2026, Magic Software Enterprises Ltd (MGIC) has a Forward P/S ratio of 1.96. This means the market is valuing MGIC at $1.96 for every dollar of expected revenue over the next 12 months.