Tel Aviv Stock Exchange (TASE:TASE) Posts Strong Earnings And Buyback Plan, Is It Still Below Fair Value?

Tel-Aviv Stock Exchange earnings jump and new buyback plan

Tel-Aviv Stock Exchange (TASE:TASE) has reported its second quarter and first half 2026 results alongside a new share repurchase program, giving investors fresh data on profitability and capital allocation.

For the second quarter ended June 30, 2026, revenue was ILS 185.37 million compared with ILS 136.1 million a year earlier. Net income for the period was ILS 78.94 million compared with ILS 43.61 million a year earlier.

Basic earnings per share from continuing operations in the quarter were ILS 0.842 compared with ILS 0.478 a year earlier. Diluted earnings per share from continuing operations were ILS 0.833 compared with ILS 0.466 a year earlier.

Across the first six months of 2026, Tel-Aviv Stock Exchange reported revenue of ILS 368.66 million compared with ILS 267.13 million in the prior year period. Net income for the half year was ILS 156.36 million compared with ILS 79.4 million a year earlier.

Basic earnings per share from continuing operations for the first half of 2026 were ILS 1.678 compared with ILS 0.868 a year earlier. Diluted earnings per share from continuing operations were ILS 1.65 compared with ILS 0.847 in the same period last year.

Alongside these results, the Board of Directors of Tel-Aviv Stock Exchange authorized a share repurchase program. The company plans to buy back up to ILS 120 million of its own shares, funded from internal sources, with the program set to run until December 31, 2026.

See our latest analysis for Tel-Aviv Stock Exchange.

Despite the strong earnings release and new buyback plan on 4 August 2026, Tel-Aviv Stock Exchange's 1 day share price return declined 2.6%. Even so, the year to date share price return of 23.08% and very large 5 year total shareholder return indicate that long term momentum has been strong.

If you are looking beyond Tel-Aviv Stock Exchange for other opportunities in market infrastructure and related themes, it could be worth scanning 37 power grid technology and infrastructure stocks

After Tel-Aviv Stock Exchange's strong earnings update, new buyback plan and recent share price pullback, the next step is to weigh the current price against its fundamentals. Investors can then decide whether it makes more sense to buy now or wait for a better entry.

Most Popular Narrative: 20.5% Undervalued

Tel-Aviv Stock Exchange last closed at ₪120.0, while the most widely followed narrative points to a fair value of ₪151. The gap between those figures is built on detailed assumptions about growth, profitability and required returns.

The shift to a Monday through Friday trading week is increasing access for global participants, which is already linked with higher foreign investor activity and higher average daily volumes. This supports trading and clearing commission revenue and the scalability of earnings.

Read the complete narrative.

Want to see what is behind a fair value above the current Tel-Aviv Stock Exchange share price? The core of this narrative is faster revenue growth, rising profit margins and a richer future earnings multiple than the wider capital markets sector. Curious which specific earnings and revenue paths have been blended with that discount rate to reach ₪151?

Result: Fair Value of ₪151 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the Tel-Aviv Stock Exchange's recent revenue jump was supported by war-related volatility and elevated ETF flows, which could diminish if trading activity or risk appetite cools.

Find out about the key risks to this Tel-Aviv Stock Exchange narrative.

Another View on Tel-Aviv Stock Exchange's Valuation

The SWS DCF model presents a very different picture for Tel-Aviv Stock Exchange. At a share price of ₪120, it is trading well above an estimated future cash flow value of ₪14.94. This points to an overvalued result on this particular measure. How much weight do you put on cash-flow-based calculations compared with narrative-driven fair values?

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 Tel-Aviv Stock Exchange 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 263 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

Given the mix of optimism and caution around Tel-Aviv Stock Exchange, it helps to check the numbers yourself and move quickly while opinions are still forming. To see which strengths are standing out to investors right now, take a closer look at the 2 key rewards.

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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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