Azrieli Group (TASE:AZRG) holds a market value of ₪47.6b, with revenue of ₪4,271m and net income of ₪1,807m, putting its diversified real estate and data center operations squarely in focus for investors.
The share price of Azrieli Group has edged up in the short term, with a 1-day share price return of 1.21% and a year to date share price gain of 6.95%. Meanwhile, the 1-year total shareholder return of 30.69% and 3-year total shareholder return of 108.38% point to momentum that has been strong over a longer horizon, despite a 90-day share price decline of 3.47%.
Compare Azrieli Group's momentum with a curated 179 high quality undervalued stocks that combine resilient cash generation with balance sheets built to weather tougher conditions.
After a strong 1-year run but a softer 90-day patch, Azrieli Group sits at an awkward middle ground. Does it make sense to step in now or wait for more weakness before valuing the upside?
Price-to-Earnings of 26.3x: Is it justified?
Azrieli Group trades on a P/E of 26.3x, which is substantially richer than both peer and sector averages given the last close of ₪392.2.
The P/E ratio compares the share price to earnings per share and captures how much investors are willing to pay for each unit of profit. For a diversified real estate and data center group like Azrieli Group, that number often reflects expectations around earnings growth, perceived quality of assets, and balance sheet resilience.
AZRG's recent earnings growth of 10.6% over the past year and forecasts pointing to 26.3% annual profit growth indicate investors may be paying up for a stronger profit trajectory, even as revenue is expected to expand by 2.5% per year, slower than the wider IL market at 9.4% per year. That mix of faster expected earnings growth and slower top line expansion suggests the market is placing a premium on margin, portfolio mix, and possibly the contribution from one off items, rather than purely on sales growth.
The premium is clear when compared directly to benchmarks. The stock trades on a P/E of 26.3x versus a peer average of 12.2x and the IL Real Estate industry average of 13.3x. This is a far higher valuation multiple and signals investors are assigning a much richer earnings price tag than is typical for the sector.
See what the numbers say about this price — find out in our valuation breakdown.
Result: Price-to-Earnings of 26.3x (OVERVALUED)
Still, the rich 26.3x P/E could face pressure if profit delivery disappoints, or if real estate and data center valuations in Israel reset lower.
Find out about the key risks to this Azrieli Group narrative .
Another View on Azrieli Group's Value
The SWS DCF model presents a contrasting perspective to the P/E story. From this standpoint, Azrieli Group at ₪392.2 a share is trading well above an estimated future cash flow value of ₪89.39. This frames the stock as expensive and raises the question of how much optimism is already reflected in the price.
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 179 high quality undervalued stocks . If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
If the mixed signals around Azrieli Group leave you uncertain, move quickly to test the data against your own judgement and risk tolerance. To balance the concerns against the potential upsides, review the 2 key rewards and 2 important warning signs .
Looking for more investment ideas beyond Azrieli Group?
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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.
Companies discussed in this article include AZRG.TA .
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