Is Clal Insurance Enterprises Holdings (TASE:CLIS) Cheap After Higher Earnings?

What the latest earnings mean for Clal Insurance Enterprises Holdings stock

Clal Insurance Enterprises Holdings (TASE:CLIS) just released second quarter and first half 2026 results, with net income and earnings per share above the prior year periods. This has put fresh attention on the stock.

The company reported ILS 617 million in second quarter net income, up from ILS 539 million a year earlier. Basic earnings per share from continuing operations reached ILS 7.63 versus ILS 6.77.

At a share price of ₪264.0, Clal Insurance Enterprises Holdings has seen a 7.54% 7 day share price return and a 13.89% 30 day share price return. The 63.64% 1 year total shareholder return and very large 3 year total shareholder return suggest momentum has been building over time as investors react to earnings and other recent updates.

Compare Clal Insurance Enterprises Holdings' recent earnings strength with other insurers that are showing resilient performance in a curated set of 302 resilient stocks with low risk scores.

After a sharp run and stronger recent earnings, Clal Insurance Enterprises Holdings now asks a simple question: Does the current price still leave enough upside to justify the risks you take from here?

Price-to-earnings of 8.9x for Clal Insurance Enterprises Holdings: Is it justified?

On a P/E of 8.9x, Clal Insurance Enterprises Holdings trades at a level that suggests the market assigns a lower earnings multiple than both its peers and the broader Asian insurance industry, despite the current share price of ₪264.0.

The P/E multiple compares the company’s share price with its earnings per share. For an insurer like Clal Insurance Enterprises Holdings, it helps you gauge how much investors are currently willing to pay for each unit of reported profit, which can be useful when earnings quality and growth are in focus.

Here, the picture is interesting. The company is regarded as having high quality earnings, net profit margins of 13.7% compared with 11% last year, and earnings growth over the past year of 52.5%, which also exceeds its 5 year average of 29.4% per year. Yet the current P/E of 8.9x sits below both the Asian insurance industry average of 11.2x and the peer average of 12.7x, which suggests the market values each unit of Clal Insurance Enterprises Holdings earnings more conservatively than comparable insurers.

Relative to those benchmarks, the discount is clear. The stock is also described as trading at 5.4% below an internal estimate of fair value based on future cash flow value of ₪279.05, and as good value both versus the industry and versus peers on P/E alone. For investors comparing insurers on earnings based metrics, this spread to industry and peer averages is a key detail to weigh alongside the company’s profit growth and profitability profile.

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

Result: Price-to-earnings of 8.9x (UNDERVALUED)

However, Clal Insurance Enterprises Holdings still faces risks from its exposure to long term savings and health insurance, along with its reliance on the Israeli market.

Find out about the key risks to this Clal Insurance Enterprises Holdings narrative.

Another view on Clal Insurance Enterprises Holdings valuation

The earlier discussion focused on the 8.9x P/E for Clal Insurance Enterprises Holdings. A different angle comes from the SWS DCF model, which puts future cash flow value at ₪279.05 per share versus the current ₪264.0. That points to a modest undervaluation. How much weight do you want to place on long term cash flow assumptions?

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 Clal Insurance Enterprises Holdings 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

If the tone of this Clal Insurance Enterprises Holdings update feels constructive, use that as a prompt to check the details yourself and decide where you stand. To see what is driving optimism around the company, review the 2 key rewards.

Looking for more investment ideas beyond Clal Insurance Enterprises Holdings?

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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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