Meitav Investment House (TASE:MTAV) Earnings And Dividend Put Its Valuation Back In Focus

How the latest earnings and dividend shape the Meitav Investment House story

Meitav Investment House (TASE:MTAV) reported second quarter 2026 revenue of ₪614 million and net income of ₪143 million, alongside a regular cash dividend of ₪0.84 per share with an ex dividend date of 24 August 2026.

For the first half of 2026, revenue came in at ₪1,212 million and net income reached ₪274 million. Basic and diluted earnings per share from continuing operations were ₪3.26 for the six month period.

The latest earnings and dividend news comes after a choppy period for Meitav Investment House, with the 30 day share price return down 10.5% and the 90 day share price return down 26.53%, even though the 1 year total shareholder return is 29.3% and the 5 year total shareholder return is a very large gain. This suggests that long term momentum remains stronger than the recent pullback.

Scan how Meitav Investment House compares with other companies showing resilient returns and balance sheets by reviewing the hand picked 313 resilient stocks with low risk scores in this space.

Analyst targets point to a large upside from the current ₪118.5 share price, yet the recent 3 month slide raises questions about why the market is cautious on Meitav Investment House. Is that discount deserved?

Preferred P/E of 10.8x for Meitav Investment House: Is it justified?

On the latest data, Meitav Investment House trades on a P/E of 10.8x, which screens as cheaper than both the wider IL market and its capital markets peer group.

The P/E ratio compares the current share price with earnings per share and is a common way to gauge how much investors are paying for each unit of profit. For an investment manager like Meitav Investment House, which reports both fee based income and financing activity, the P/E gives a quick read on how the market is pricing its earnings profile today.

Several datapoints frame that 10.8x multiple. Earnings grew very strongly over the past year and have also grown quickly on a 5 year view. Return on equity is described as outstanding at 41.01%, although that figure is affected by a high level of debt. At the same time, the SWS DCF model value of ₪31.45 is far below the current ₪118.5 share price. There are also flags around non cash earnings and weaker cash flow cover for both debt and dividends. Taken together, the P/E discount to the IL market suggests investors are already applying a cautious lens to those quality and balance sheet questions.

Compared with the IL market P/E of 15.3x, Meitav Investment House trades at a clear discount. The company also sits below the peer average of 13.9x for the Asian capital markets group. That is a meaningful gap and implies the market is pricing Meitav Investment House as cheaper than many similar companies, despite its recent earnings and margin profile.

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

Result: Price-to-earnings of 10.8x (UNDERVALUED).

However, the recent 3 month share price slide and the large gap between the SWS DCF estimate and the current Meitav Investment House share price both challenge the bullish story.

Find out about the key risks to this Meitav Investment House narrative.

Another view on Meitav Investment House using our DCF model

The P/E discount paints Meitav Investment House as relatively cheap. The SWS DCF model tells a very different story. It estimates fair value at ₪31.45 per share compared with the current ₪118.5 price, which screens as significantly overvalued on that approach.

For investors, that gap raises a practical question. Is the market correctly pricing earnings resilience that the DCF model cannot fully capture, or is this a warning sign that expectations have run ahead of cash flow reality?

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 Meitav Investment House 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 267 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

With sentiment on Meitav Investment House pulling in different directions, now is the time to check the data yourself and form a clear view. To weigh up both the positives and the areas of concern in one place, start with these 3 key rewards and 3 important warning signs.

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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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