Meitav Investment House (TASE:MTAV): Is the Stock Still Undervalued After Surging Q3 2025 Earnings?

Meitav Investment House (TASE:MTAV) just posted its third quarter 2025 earnings, showing a sharp jump in both revenue and net income compared to last year. This has caught investors’ attention across the market.

See our latest analysis for Meitav Investment House.

This blockbuster earnings report follows a year of extraordinary momentum. Meitav’s share price has climbed to ₪114.9, with a 267% gain year-to-date and a notable 353% total shareholder return over twelve months. Investors are clearly responding to the company’s renewed growth story and shifting risk perceptions, with short-term price returns also reflecting fresh optimism.

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But after such a meteoric surge, is there still value left in Meitav Investment House or has the market already factored in the company’s future earnings growth? Is this a potential buying opportunity, or is everything already priced in?

Price-to-Earnings of 11.1x: Is it justified?

Meitav Investment House is currently trading at a price-to-earnings (P/E) ratio of 11.1x, lower than both the Israel market average (15.2x) and key industry peers (20.6x). This suggests that the stock is valued more cheaply relative to its earnings when compared to its competitors.

The price-to-earnings ratio measures how much investors are willing to pay for a company’s profit, relative to its earnings. For financial services firms, it is a commonly used barometer that helps indicate market sentiment about future growth, profitability, or risk.

With such a sizable gap below industry averages, the market might be underestimating Meitav’s earning power despite its dramatic growth. Investors could be pricing in concerns about sustainability or simply not yet rewarding the company for its turnaround. However, Meitav’s P/E ratio gives it room to be re-rated upward if current growth momentum persists and risks are kept in check.

Compared to both the Israeli market and the Asian Capital Markets industry, Meitav’s lower price-to-earnings multiple stands out. This could become a catalyst if investor confidence builds, especially if the company continues to outpace the sector in terms of earnings growth.

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

Result: Price-to-Earnings of 11.1x (UNDERVALUED)

However, investors should note potential risks from fluctuating market conditions or unexpected regulatory changes, as both could quickly shift the outlook for Meitav.

Find out about the key risks to this Meitav Investment House narrative.

Another View: Discounted Cash Flow Model Weighs In

Our SWS DCF model offers a different perspective. It estimates Meitav’s fair value at ₪15.85 a share, which is far below the current market price. This suggests Meitav might be overvalued by a wide margin according to DCF assumptions and raises questions about how sustainable its recent market optimism truly is.

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 Meitav Investment House 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 917 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 Meitav Investment House Narrative

If you see the story differently or want to dig deeper on your own terms, you can build a personalized view in just a few minutes. Do it your way

A great starting point for your Meitav Investment House research is our analysis highlighting 2 key rewards and 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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