Azrieli Group (TASE:AZRG) Valuation After Another Quarter of Sales and Profit Growth

Azrieli Group (TASE:AZRG) just posted another quarter of growth, with third quarter and nine month sales and profits climbing versus last year. Investors now need to judge how durable this trend looks.

See our latest analysis for Azrieli Group.

Even with those stronger earnings, the recent 30 day share price return of minus 7.29 percent and softer 7 day move suggest momentum has cooled a bit, though the 5 year total shareholder return of 77.77 percent still points to a rewarding long term story.

If Azrieli’s performance has you thinking bigger picture, this could be a good moment to scan the market for fast growing stocks with high insider ownership and see what else is quietly compounding in the background.

With earnings still climbing and the share price pulling back despite a modest discount to analyst targets, investors now face a key question: Is Azrieli undervalued today, or is the market already pricing in its future growth?

Price-to-Earnings of 23.5x: Is it justified?

Azrieli’s last close of ₪319.3 comes with a rich 23.5 times earnings tag, putting it in the overvalued camp versus its peers.

The price to earnings ratio compares what investors pay for each unit of current profit, which is especially important for income producing real estate groups where earnings power underpins long term returns.

In Azrieli’s case, the market is assigning a meaningfully higher multiple than both specific peers at 13.5 times and the wider Israeli real estate industry at 14.8 times. This implies investors are already paying a premium for its growth story and asset mix.

This premium suggests the share price reflects expectations of stronger, more resilient earnings than the sector, which may leave less margin for disappointment if growth or cash flows fall short of expectations.

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

Result: Price-to-Earnings of 23.5x (OVERVALUED)

However, revenue is shrinking and expectations are high. Any slowdown in leasing demand or data center growth could quickly pressure that premium valuation.

Find out about the key risks to this Azrieli Group narrative.

Another View, Our DCF Check

While the earnings multiple points to a premium price, our DCF model is even more cautious, putting fair value at about ₪128.24 per share, well below the current ₪319.3. If both earnings and cash flow lenses flash “expensive,” it raises the question: what exactly is the market paying up for?

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 Azrieli Group 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 920 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 Azrieli Group Narrative

If you see the numbers differently or simply prefer your own deep dive, you can build a personalized view in just minutes: Do it your way.

A great starting point for your Azrieli Group research is our analysis highlighting 1 key reward and 4 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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