WallStSmart

Formula Systems 1985 Ltd ADR (FORTY)vsInfosys Ltd ADR (INFY)

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Smart Verdict

WallStSmart Research — data-driven comparison

Infosys Ltd ADR generates 587% more annual revenue ($19.85B vs $2.89B). INFY leads profitability with a 16.2% profit margin vs 2.7%. INFY appears more attractively valued with a PEG of 2.22. INFY earns a higher WallStSmart Score of 48/100 (D+).

FORTY

Hold

44

out of 100

Grade: D

Growth: 4.0Profit: 5.5Value: 4.7Quality: 7.5
Piotroski: 4/9Altman Z: 2.11

INFY

Hold

48

out of 100

Grade: D+

Growth: 4.0Profit: 9.0Value: 7.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FORTYSignificantly Overvalued (-294.3%)

Margin of Safety

-294.3%

Fair Value

$33.86

Current Price

$122.06

$88.20 premium

UndervaluedFair: $33.86Overvalued
INFYSignificantly Overvalued (-200.8%)

Margin of Safety

-200.8%

Fair Value

$5.24

Current Price

$13.08

$7.84 premium

UndervaluedFair: $5.24Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FORTY1 strengths · Avg: 8.0/10
Price/BookValuation
2.6x8/10

Reasonable price relative to book value

INFY3 strengths · Avg: 9.0/10
Return on EquityProfitability
32.7%10/10

Every $100 of equity generates 33 in profit

Market CapQuality
$53.86B9/10

Large-cap with strong market position

P/E RatioValuation
17.0x8/10

Attractively priced relative to earnings

Areas to Watch

FORTY4 concerns · Avg: 2.8/10
P/E RatioValuation
31.8x4/10

Premium valuation, high expectations priced in

Profit MarginProfitability
2.7%3/10

2.7% margin — thin

PEG RatioValuation
4.072/10

Expensive relative to growth rate

EPS GrowthGrowth
-20.8%2/10

Earnings declined 20.8%

INFY3 concerns · Avg: 3.3/10
PEG RatioValuation
2.224/10

Expensive relative to growth rate

Revenue GrowthGrowth
3.2%4/10

3.2% revenue growth

EPS GrowthGrowth
-5.3%2/10

Earnings declined 5.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : FORTY

The strongest argument for FORTY centers on Price/Book. Revenue growth of 11.3% demonstrates continued momentum.

Bull Case : INFY

The strongest argument for INFY centers on Return on Equity, Market Cap, P/E Ratio. Profitability is solid with margins at 16.2% and operating margin at 18.0%.

Bear Case : FORTY

The primary concerns for FORTY are P/E Ratio, Profit Margin, PEG Ratio. Thin 2.7% margins leave little buffer for downturns.

Bear Case : INFY

The primary concerns for INFY are PEG Ratio, Revenue Growth, EPS Growth.

Key Dynamics to Monitor

FORTY carries more volatility with a beta of 0.43 — expect wider price swings.

FORTY is growing revenue faster at 11.3% — sustainability is the question.

Monitor INFORMATION TECHNOLOGY SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

INFY scores higher overall (48/100 vs 44/100), backed by strong 16.2% margins. Both earn "Hold" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Formula Systems 1985 Ltd ADR

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

Formula Systems (1985) Ltd., provides software, proprietary and non-proprietary software, and software product marketing and support services in Israel and internationally. The company is headquartered in Or Yehuda, Israel.

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Infosys Ltd ADR

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

Infosys Limited offers next generation digital consulting, technology, outsourcing and services in North America, Europe, India and internationally. The company is headquartered in Bengaluru, India.

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