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    Is Lahav LR Real Estate (TASE:LAHAV) Undervalued As Its P/E Trails The Sector?

    Simply Wall St·11/09/2026 21:21:53
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    Lahav LR Real Estate (TASE:LAHAV) is back in focus after strong multi year share performance collided with a P/E ratio that still trails the broader real estate sector.

    Recent trading has been choppy, with a 1 day share price return of 1.91% and a 7 day share price return that declined 5.66%. Even so, Lahav LR Real Estate still carries a year to date share price gain of 21.53% and a 1 year total shareholder return of 66.85%, pointing to momentum that has cooled in the very short term while remaining firmly positive over longer periods.

    Spot opportunities with a similar profile to Lahav LR Real Estate by scanning our curated list of 218 high quality undervalued stocks, which combine earnings power with comparatively modest P/E ratios.

    After a sharp multi year run and a sector lag on P/E, Lahav LR Real Estate now sits in that awkward middle ground. Do you pay up today, or wait and hope for a cheaper entry point?

    Price-to-Earnings of 10.1x: Is it justified?

    Lahav LR Real Estate trades on a P/E of 10.1x, which lines up with a share price of ₪10.67 and places the stock below both its Israeli real estate peers and the wider local market on this measure.

    The P/E ratio compares what you pay per share with the annual earnings per share. For a diversified operator like Lahav LR Real Estate, which spans Israeli and German income producing properties, renewable energy, fuel distribution and waste treatment, this metric gives a simple yardstick for how much the market is willing to pay for current profits.

    At 10.1x earnings, the market is applying a lower tag than both the Israeli real estate industry average of 12.8x and the peer group average of 11x. That lower multiple sits alongside a reported return on equity of 21.1%, earnings growth of 126.4% over the past year versus 5.2% per year over five years, and a net profit margin that moved from 30.5% to 63.2%, although recent results are affected by a large one off gain of ₪107.7m.

    The gap to the sector is clear. Lahav LR Real Estate trades at a discount to the 12.8x industry P/E and below the 13.9x Israeli market, which indicates the market is pricing its earnings more conservatively than those benchmarks.

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

    Result: Price-to-Earnings of 10.1x (UNDERVALUED).

    Still, Lahav LR Real Estate leans heavily on Israeli fuel distribution and complex equity accounted assets, so any hit to those earnings streams could quickly challenge the current P/E story.

    Find out about the key risks to this Lahav LR Real Estate narrative.

    Another View: Lahav LR Real Estate Through A Cash Flow Lens

    P/E points to Lahav LR Real Estate looking inexpensive, but the SWS DCF model tells a different story. On that cash flow based view, an estimated value of ₪5.80 per share sits well below the current ₪10.67 price, which frames the stock as overvalued on this method. Which lens do you trust more when they disagree?

    Look into how the SWS DCF model arrives at its fair value.

    LAHAV Discounted Cash Flow as at Nov 2026
    LAHAV Discounted Cash Flow as at Nov 2026

    Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Lahav LR Real Estate 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 218 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

    Mixed signals on Lahav LR Real Estate can feel confusing, so check the numbers yourself and form a clear view while sentiment is still divided. To weigh both sides of the story in one place, start with the 2 key rewards and 3 important warning signs.

    Looking for more investment ideas beyond Lahav LR Real Estate?

    If Lahav LR Real Estate has your attention, do not stop with a single ticker. Use this momentum to widen your watchlist and pressure test your convictions.