Israel Corporation (TASE:ILCO): Evaluating Value After Q3 2025 Results Draw Investor Focus

Israel Corporation (TASE:ILCO) has released its financial results for the third quarter of 2025, with sales and net income both edging up compared to the same period last year. The update has caught investors’ attention.

See our latest analysis for Israel.

After the third quarter update, Israel’s share price has weathered choppy waters, down almost 24% over the past month and still negative year-to-date. However, the one-year total shareholder return remains modestly positive at nearly 6%. While momentum has cooled since earlier highs, long-term holders have seen a strong 73% total return over the past five years, reflecting both resilience and the company’s evolving story.

If the volatility around Israel Corporation has you thinking broadly, consider exploring fast growing stocks with high insider ownership as your next discovery step.

But with valuations under pressure despite stable quarterly growth, should investors view Israel Corporation’s current weakness as an attractive entry point? Or is the market already factoring in all the future upside?

Price-to-Earnings of 13.7x: Is it justified?

At a price-to-earnings (P/E) ratio of 13.7x, Israel Corporation trades at a noticeable discount to its peers. This suggests the market could be underestimating its longer-term earnings power. The last close price stands at ₪907.6, positioning the company as a potential value play compared to sector averages.

The price-to-earnings ratio compares a company’s current share price to its per-share earnings. It is a standard valuation yardstick for mature industries like chemicals. For investors, this multiple quickly illustrates how much they are paying for each unit of current profit.

Israel Corporation’s P/E of 13.7x is significantly below both the Asian Chemicals industry average of 21.8x and the peer group average of 41.1x. This places the company at a valuation level that the broader market typically reserves for businesses facing uncertainty. However, Israel Corporation has demonstrated steady profitability and a turnaround in earnings over the last 5 years. Any shift in market sentiment or earnings outlook could prompt the multiple to close the gap with industry peers.

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

Result: Price-to-Earnings of 13.7x (UNDERVALUED)

However, weaker multi-year returns and persistent valuation discounts could signal deeper challenges if business growth does not accelerate soon.

Find out about the key risks to this Israel narrative.

Another View: What About Fair Value?

While Israel Corporation’s current share price looks cheap compared to peers, our DCF model offers a different perspective. The SWS DCF model values the company at ₪788.1 per share, which is below the market price of ₪907.6. This approach suggests shares may actually be overvalued. Does the market know something the model doesn’t, or is risk being overlooked?

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 Israel 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 922 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 Israel Narrative

If you’d rather draw your own conclusions or want to dig deeper into the numbers, it only takes a few minutes to put together your own perspective. So why not Do it your way.

A good starting point is our analysis highlighting 1 key reward investors are optimistic about regarding Israel.

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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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