Evaluating F.I.B.I. Holdings (TASE:FIBIH) After Dividend Declaration and FTSE All-World Index Inclusion

Dividend move and index inclusion draw fresh attention

F.I.B.I. Holdings (TASE:FIBIH) just paired a new cash dividend with entry into the FTSE All-World Index, a combination that quietly upgrades both its income profile and global visibility.

The dividend of ₪5.92 per share, backed by a payout ratio around 42%, suggests earnings still comfortably cover distributions. In addition, the FTSE inclusion can put the stock on the radar of index-tracking funds and international institutions.

See our latest analysis for F.I.B.I. Holdings.

Those developments are landing on top of robust share price momentum, with the stock now at ₪276.9 after a strong year to date share price return and an even stronger multi year total shareholder return that signals investors are steadily re rating its prospects.

If F.I.B.I. Holdings has piqued your interest, this could be a good moment to broaden your search and explore fast growing stocks with high insider ownership for other potential standouts.

Yet even after that rally and index upgrade, shares still trade at a discount to estimated fair value. This raises a key question: Is this a genuine mispricing, or is the market already baking in years of growth?

Price-to-Earnings of 8.8x: Is it justified?

F.I.B.I. Holdings trades on a price to earnings ratio of 8.8 times, which looks modest given its recent share price performance and quality profile.

The price to earnings multiple compares the company’s market value to its after tax profits, a core yardstick for banks where earnings power drives long term returns. For F.I.B.I. Holdings, this yardstick suggests investors are not paying an excessive premium for each shekel of profit, despite a strong five year earnings expansion.

What stands out is that the stock changes hands at 8.8 times earnings while peers on average sit around 10.3 times, and the broader Asian Banks industry is closer to 9.8 times. That discount hints the market is still pricing F.I.B.I. Holdings more conservatively than its regional banking peers, even though its earnings track record has been robust over the past half decade.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Earnings of 8.8x (UNDERVALUED)

However, risks remain, including potential margin pressure if funding costs rise, and softer credit demand if Israel’s economic backdrop deteriorates.

Find out about the key risks to this F.I.B.I. Holdings narrative.

Another View: Cash Flows Point the Same Way

Our DCF model also suggests upside, with F.I.B.I. Holdings trading roughly 20.6% below an estimated fair value of ₪348.67. Price and cash flows are telling a similar story. The question is whether this gap represents a lasting opportunity or compensation for harder to see risks.

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out F.I.B.I. Holdings for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 908 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own F.I.B.I. Holdings Narrative

If you see the story differently, or want to dig into the numbers yourself, you can build a custom view in just minutes: Do it your way.

A great starting point for your F.I.B.I. Holdings research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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