Magic Software Enterprises Ltd. - Ordinary Shares (MGIC) Company Bio
Magic Software Enterprises Ltd. provides proprietary application development, business process integration, and vertical software solutions and related professional services. The company was founded in 1983 and is based in Or Yehuda, Israel.
MGIC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Magic Software Enterprises Ltd. To summarize, we found that Magic Software Enterprises Ltd ranked in the 30th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Magic Software Enterprises Ltd, consider:
Interest coverage, a measure of earnings relative to interest payments, is -179.9 -- which is good for besting only 0.89% of its peer stocks (US stocks in the Technology sector with positive cash flow).
The business' balance sheet reveals debt to be 7% of the company's capital (with equity being the remaining amount). Approximately merely 15.81% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BKI, CRUS, SATS, CDNS, and VSH can be thought of as valuation peers to MGIC, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.