Phoenix Financial (TASE:PHOE) Valuation Check After Strong Net Income and EPS Growth Reports

Phoenix Financial (TASE:PHOE) just backed up its recent share price strength with hard numbers, delivering higher net income and fatter earnings per share for both the latest quarter and the nine month stretch.

See our latest analysis for Phoenix Financial.

The latest earnings beat slots neatly into a powerful run, with the share price at ₪139.1 and momentum clearly building as a triple digit year to date share price return feeds into an even stronger multi year total shareholder return profile.

If Phoenix Financial’s surge has you thinking about what else might be gaining traction, this could be a good moment to explore fast growing stocks with high insider ownership.

Yet with the shares now near analyst targets after a huge multi year run and fresh buybacks, the real debate is this: are investors still getting a bargain, or is the market already pricing in Phoenix Financial’s future growth?

Price to Earnings of 12.7x: Is it justified?

Phoenix Financial trades on a price to earnings ratio of 12.7 times, which positions the last close of ₪139.1 between value and optimism signals.

The price to earnings multiple compares the share price with per share earnings, making it a widely used yardstick for insurers where profits can swing with claims and investment income.

Relative to the Israeli market, Phoenix Financial’s 12.7 times earnings looks restrained. It sits below the broader 15.3 times level and suggests investors are not overpaying for every unit of current profit, even after a powerful share price run and sharply higher earnings over the last year.

Against peers, however, the story flips. The shares screen as expensive versus the Asian insurance industry average of 11.1 times earnings and even a touch rich compared with an estimated fair price to earnings ratio of 12.4 times, which implies the market could still compress the multiple if growth or profitability underwhelm.

Explore the SWS fair ratio for Phoenix Financial

Result: Price to Earnings of 12.7x (ABOUT RIGHT)

However, investors still face risks if earnings momentum fades or regulations tighten, which could compress Phoenix Financial’s premium valuation after such a powerful run.

Find out about the key risks to this Phoenix Financial narrative.

Another View: Our DCF Lens

Our DCF model paints a cooler picture, suggesting fair value closer to ₪100.01. This makes the current ₪139.1 price look overvalued and implies limited upside if growth normalises. Is the market rightly paying up for momentum, or overlooking downside if expectations slip?

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 Phoenix Financial 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 899 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 Phoenix Financial Narrative

If you see things differently or want to dig into the numbers yourself, you can build a personal view in just minutes: Do it your way.

A great starting point for your Phoenix Financial research is our analysis highlighting 3 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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