Discounted Cash Flow
Formula Systems (1985) Ltd. ADR
—
Sales growth has weakened: 7.0% (2022) → 1.9% (2023) → 5.2% (2024) → -4.7% (2025). Revenue growth has been decelerating or declining in recent years and is now -4.7% — a slowing company may not sustain the growth the DCF projects, so the valuation could be overstated.
Average annual growth rates
| Metric | 10-Year | 5-Year | 3-Year |
|---|---|---|---|
| Sales | — | — | — |
| Free Cash Flow | — | — | — |
| Average (FCF & NI) | — | — | — |
| Net Income | — | — | — |
| Dividends | — | — | — |
Endpoint CAGR (better for long term trend)
| Metric | 10-Year | 5-Year | 3-Year |
|---|---|---|---|
| Sales | — | — | — |
| Free Cash Flow | — | — | — |
| Average (FCF & NI) | — | — | — |
| Net Income | — | — | — |
Projected growth rate
—
Historical inputs (10 fiscal years)
| YEAR | Sales | Net Income | Free Cash Flow | Net Margin | EPS (diluted) |
|---|---|---|---|---|---|
| 2016 | $365.9m | $7.4m | $24.0m | 2.0% | $1.58 |
| 2017 | $447.2m (22.2%) | $3.4m (-53.9%) | $23.6m (-1.6%) | 0.8% (-62.3%) | $0.72 (-54.4%) |
| 2018 | $492.7m (10.2%) | $10.7m (212.6%) | $27.2m (15.4%) | 2.2% (183.8%) | $2.20 (205.6%) |
| 2019 | $561.4m (13.9%) | $12.8m (19.9%) | $64.6m (137.2%) | 2.3% (5.3%) | $2.56 (16.4%) |
| 2020 | $638.2m (13.7%) | $15.4m (20.5%) | $89.2m (38.1%) | 2.4% (6.0%) | $3.05 (19.1%) |
| 2021 | $793.5m (24.3%) | $18.0m (16.7%) | $68.3m (-23.5%) | 2.3% (-6.1%) | $3.57 (17.0%) |
| 2022 | $848.9m (7.0%) | $26.9m (49.1%) | $78.6m (15.2%) | 3.2% (39.4%) | $5.31 (48.7%) |
| 2023 | $865.0m (1.9%) | $21.1m (-21.4%) | $97.3m (23.8%) | 2.4% (-22.8%) | $4.19 (-21.1%) |
| 2024 | $910.0m (5.2%) | $26.3m (24.5%) | $107.0m (10.0%) | 2.9% (18.3%) | $5.22 (24.6%) |
| 2025 | $867.0m (-4.7%) | $200.2m (661.2%) | $126.0m (17.8%) | 23.1% (699.0%) | $36.09 (591.4%) |
Base FCF: — (latest fiscal year)
Discount rate: % —
Terminal growth: —
Projection period: — years
Alt A decline yrs:
Alt B total yrs:
SEC filings report in ILS. Values above are converted to USD for comparison with the US-listed share price.
Projected cash flows
| Year | Projected cash flow | Discount Factor | Present Value |
|---|
PV of projected FCF: —
Terminal FCF: —
Terminal value: —
PV of terminal value: —
Enterprise value (DCF): —
Net debt deduction: —
Current price: —
—Alternative DCF Models
| Model | Fair Value | Upside | PV(FCFs) | PV(Terminal) | Total Years |
|---|---|---|---|---|---|
| Standard (10yr→TV) | — | — | — | — | 10 + TV |
| Alt A (Gradual Decline) | — | — | — | — | — |
| Alt B (30yr Hard Stop) | — | — | — | N/A | — |
This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.