Assessing Inrom Construction Industries (TASE:INRM) Valuation After Strong Q3 and Nine-Month 2025 Earnings Growth

Inrom Construction Industries (TASE:INRM) just posted its third quarter and nine month 2025 results, with higher sales and net income that help explain why the stock has been catching investors attention lately.

See our latest analysis for Inrom Construction Industries.

Those stronger earnings land on top of a solid run, with the share price up 19.5% over the last three months and a 12 month total shareholder return of 46.6%, signaling momentum that investors are steadily rewarding.

If Inrom’s recent move has you reassessing your watchlist, it is worth exploring fast growing stocks with high insider ownership as a way to uncover other promising names riding improving sentiment.

But with earnings climbing alongside the share price and a modest intrinsic premium already implied, the key question now is whether Inrom still offers upside from here or if the market is fully pricing in future growth.

Price-to-Earnings of 25.4x: Is it justified?

Inrom Construction Industries trades on a price-to-earnings ratio of 25.4x at a last close of ₪23.8, which screens as expensive versus parts of its industry but cheaper than some peers.

The price-to-earnings multiple compares the company’s share price to its earnings per share, so a higher ratio typically reflects stronger growth expectations or perceived quality, especially in capital goods and building related names.

In Inrom’s case, the current 25.4x earnings multiple sits below the 33.9x average for its selected peer group, implying investors are not assigning it the richest growth premium available among comparable companies, even as its five year earnings track record shows moderate annual expansion.

However, that same 25.4x multiple looks demanding against the broader Asian Building industry average of 19.1x, underscoring that the market is still willing to pay a clear premium for Inrom’s earnings despite a weaker recent profit trend and lower net margins than a year ago.

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

Result: Price-to-Earnings of 25.4x (OVERVALUED)

However, downside risks remain, including any slowdown in Israeli construction activity or margin pressure if input costs rise faster than Inrom can pass through.

Find out about the key risks to this Inrom Construction Industries narrative.

Another Take on Value

Our DCF model suggests a sharper downside than the earnings multiple indicates, with Inrom trading around ₪23.8 versus an estimated fair value near ₪3.59, implying it may be meaningfully overvalued. Is the market overestimating long term cash flows, or is the model too cautious?

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 Inrom Construction Industries 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 915 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 Inrom Construction Industries Narrative

If you see things differently, or would rather dig into the numbers yourself, you can build a personalized view in just minutes using Do it your way.

A great starting point for your Inrom Construction Industries research is our analysis highlighting 3 important warning signs 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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