Equity Research Services-Computer Programming Services

Should You Buy Formula Systems (1985) Ltd. Stock in 2026?

By CirclFi Research Team · · 13/13 models active

According to the CirclFi Deep Alpha Valuation Engine, Formula Systems (1985) Ltd. (FORTY) registers a weak Quality of Company score of 2.0/10. At the current price of $109.75, our 13-model framework evaluates whether the stock's discount is sufficient to compensate for high fundamental risks.

The short answer: 5 of 13 CirclFi valuation models project upside for Formula Systems (1985) Ltd. (FORTY) at $109.75 — the model consensus leans bearish, with a Quality Score of 2.0/10 and Value-Trap risk of —/100. The full bull case, bear case, and risk factors are below. Educational analysis, not financial advice.

Key Takeaways

  • 8 of 13 models suggest overvaluation — majority bearish
  • Quality Score: 2.0/10 — Very Weak — significant concerns
  • Value Trap Risk: —/100 — Not scored
  • Fair Value Range: $21.16 – $146.76 (594% spread)

Bullish Models

5 / 13

Bearish Models

8 / 13

Quality Score

2.0 /10

Very Weak — significant concerns

Value Trap Risk

— /100
Not scored

Not scored

Model Consensus

13 /13
Active Models

Avg. confidence: 5%

Investment Thesis

The Bull Case

Target: $146.76 (+33.7% upside)

  • According to the CirclFi Deep Alpha Valuation Engine, the Earnings Power Value (EPV) model targets a fair value of $146.76 (+33.7%), anchoring the bull case with a methodology that strips out growth assumptions to value sustainable earnings alone.

The Bear Case

Target: $21.16 (-80.7%)

  • According to the CirclFi Quality of Company (QOC) framework, Formula Systems (1985) Ltd.'s score of 2.0/10 signals fundamental weaknesses that could undermine the investment thesis.
  • According to the CirclFi Deep Alpha Valuation Engine, the Markov DDM model sees the stock as overvalued with a fair value of $21.16 (-80.7%), suggesting that the market price embeds overly optimistic growth assumptions.
  • According to the CirclFi Deep Alpha Valuation Engine, the wide model spread of +114.4% reflects fundamental divergence on key assumptions (growth, cost of capital) depending on the methodology.

Peer Benchmarking

DOCS Doximity, Inc.
10.0
ISSC Innovative Solutions
9.3
CTSH Cognizant Technology
9.1
EPAM EPAM Systems, Inc.
9.0
WIT Wipro Limited
8.8

Valuation Divergence

Spread

594%

Fair Value Range

$21.16 – $146.76

A 594% spread signals high uncertainty. The investment outcome depends heavily on which scenario plays out.

Most Bullish

EPV

$146.76 (+33.7%)

Most Bearish

Markov DDM

$21.16 (-80.7%)

Key Risk Factors

Weak Fundamentals

QOC 2.0/10 signals below-average quality.

Model Disagreement

594% spread signals high variance in projections.

Bearish Consensus

8/13 models suggest overvaluation.

Macro/Sector Risk

Services-Computer Programming Services headwinds could affect earnings trajectory.

Want the full 13-model breakdown?

See every fair value, confidence score, and value trap analysis.

View FORTY Data Page →

The Bottom Line

Formula Systems (1985) Ltd. at $109.75 is a genuine coin-flip in our framework. The 5–7 bull-bear split across 13 models, +114.4% model spread, and composite fair value of $94.36 (-14.0% avg.) argue for a watchlist position rather than a high-conviction bet. Quality at 2.0/10 adds additional caution to the mix.

These are quantitative model outputs, not investment recommendations. Formula Systems (1985) Ltd.'s future depends on factors — management execution, competitive dynamics, regulatory changes — that no algorithm can fully capture. See all 13 model estimates →

Frequently Asked Questions

Should I buy FORTY stock right now?

Based on CirclFi's multi-model analysis, 5 of 13 models see upside for FORTY at $109.75. The models are divided, which means the investment case depends heavily on your assumptions about Formula Systems (1985) Ltd.'s future. This is not a buy recommendation — see our full disclaimer.

What are the biggest risks of investing in Formula Systems (1985) Ltd.?

Key risks include: a below-average Quality Score of 2.0/10, indicating fundamental weakness; wide model disagreement (594% spread), signaling high uncertainty; general market and sector-specific risks affecting Services-Computer Programming Services companies. Always diversify and consult a financial advisor.

How does FORTY compare to its competitors?

Among Services-Computer Programming Services peers, FORTY holds a Quality Score of 2.0/10. Comparable companies include DOCS (QOC 10.0), ISSC (QOC 9.3), CTSH (QOC 9.1). The relative ranking helps investors identify whether FORTY offers better fundamental quality than alternatives in the same sector.

Is FORTY a good long-term investment?

Long-term investment potential depends on fundamental quality and sustainable competitive advantages. FORTY's Quality Score of 2.0/10 raises concerns about long-term viability without significant operational improvements. Check our full data page for all 13 model estimates.

What price should I buy FORTY at?

CirclFi does not provide target buy prices or price alerts. However, our 13 active models produce fair value estimates ranging from $21.16 to $146.76. At $109.75, the stock trades within the range of model estimates. Many value investors look for a 20-30% margin of safety below intrinsic value before buying.

Want the complete picture?

See all 13 model estimates, confidence scores, and the full valuation table for FORTY.

View FORTY Data Page Full Terminal — $39/mo

Disclaimer: This article is produced by the CirclFi Valuation Engine using quantitative models and is for educational and informational purposes only. It is not financial advice, a buy/sell recommendation, or a solicitation to trade securities. Past performance is not indicative of future results. All data sourced from SEC EDGAR, FRED, and GDELT. Consult a licensed financial advisor before making investment decisions. Full disclaimer →