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Ayalon Insurance Company (AYAL) Fair Value & Analysis

Financial Services · Il · Market cap 3.8B ILA

AI Ayalon Insurance Company AYAL · TA
Price132.80 ILA
Fair Value195.22 ILA
Upside+47.0%
Quality48/100
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Mixed Growth
Thin margins · 7.0% net margin
Low debt · generates free cash flow
Mixed vs. peers (7/14)
Moderate moat 54/100
Evidence: High Range 146.42 ILA – 244.03 ILA Share as image

Fair value as of: Jul 18, 2026

From 6 valuation models · updated 22 days ago

Fair value updated Jul 18, 2026, revised from 202.30 ILA to 195.22 ILA (−3.5%) since Jun 26, 2026. Share price +10.0% over the past month.

Below-average quality, screening 47% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (146.42 ILA). The market is more pessimistic than our downside scenario.
  • Solid quality (48/100) at a price below fair value, the discount is the argument here, not the business quality.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

168.70 ILA 9.66 ILA Fair Value 195.22 ILA Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range 9.66 ILA – 168.70 ILA · fair‑value band 146.42 ILA – 244.03 ILA · the 132.80 ILA price screens below the 195.22 ILA fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

Ayalon Insurance Company (AYAL) currently trades at 132.80 ILA, while our model-based Fair Value estimate is 195.22 ILA, implying the stock looks roughly 47.0% undervalued today. The Quality Score stands at 48/100 (below-average quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Ayalon Insurance Company generated revenue of 6.4B ILA at a net margin of 7.0%. Revenue grew 5.7% year over year. It earns a return on equity of 33.1%. The balance sheet holds a net cash position of 156M ILA. Fundamentals as of Jul 18, 2026

Our scenario range runs from 146.42 ILA (bear case) to 244.03 ILA (bull case); at 132.80 ILA, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Financial Services peers we cover trades at -12% fair-value upside, at 47%, AYAL screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Residual Income 89.76 ILA 111.47 ILA 413.44 ILA 76
Gordon GGM 82.03 ILA 163.45 ILA 247.51 ILA 70
P/E Multiple 146.42 ILA 195.22 ILA 244.03 ILA 63
All 6 models by family
Dividend Discount
Gordon GGM 82.03 ILA 163.45 ILA 247.51 ILA 70
DDM Multi-Stage 82.03 ILA 141.26 ILA 172.54 ILA 61
Multiples
P/E Multiple 146.42 ILA 195.22 ILA 244.03 ILA 63
P/B Multiple 56.23 ILA 74.97 ILA 93.71 ILA 55
Asset-Based
NCAV (Graham) 26.77 ILA 35.88 ILA 53.55 ILA 50
Economic Profit
Residual Income 89.76 ILA 111.47 ILA 413.44 ILA 76

Widest divergence: Dividend Discount (141.26 ILA) versus Asset-Based (35.88 ILA). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 6.4B ILA
Revenue growth (YoY) +5.7%
Net margin 7.0%
Return on equity 33.1%
Free cash flow 188M ILA FY2025
P/E ratio 10.1
More key figures
Operating margin 11.0%
EPS (TTM) 16.64 ILA
EPS growth (YoY) +28.3%
Net cash 156M ILA FY2025

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 48/100

Of which business quality 40 · Market factors (momentum, volatility) 76

Profitability 45
Margins and returns on capital today
Quality Growth 87
Are margins and returns improving?
Cashflow 29
Earnings quality: real cash, not paper profit
Fin. Strength 14
Balance sheet, leverage, solvency risk
Investment 52
Disciplined investing over empire-building
Low Volatility 62
Calm price path (market factor)
Momentum 82
Price trend over the last 3–12 months (market factor)
52W Momentum 84
Distance to the 52-week high (market factor)
Net Issuance 35
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Ayalon Insurance Company Ltd, through its subsidiaries, provides various insurance products in Israel. It offers life insurance and long-term savings plans, such as pension savings insurance funds and savings policies; and general insurance cover products, including property, liability, marine, and third-party liability insurance, as well as medical …

Full company description

Ayalon Insurance Company Ltd, through its subsidiaries, provides various insurance products in Israel. It offers life insurance and long-term savings plans, such as pension savings insurance funds and savings policies; and general insurance cover products, including property, liability, marine, and third-party liability insurance, as well as medical expense, motor property insurance, property and third-party motor insurance, and property auto insurance. The company also provides health insurance products, including critical illness, nursing care, dental, personal accident, and medical insurance for foreign workers, and employer's, third-party, professional, directors and officers, and product liability insurance. In addition, it offers fire, engineering, and contractor works insurance; contractors' insurance; comprehensive insurance for businesses and offices; mechanical engineering equipment insurance; personal accident; mechanical breakdown, electronic equipment, and agricultural insurance; comprehensive insurance for apartments, including building insurance; cargo insurance in transportation, including marine, land, and water; vessel insurance; business; and cyber damage insurance. In addition, it is involved in transplants and special treatments; surgeries and alternative treatments; ambulatory coverage, including outpatient testing, consultation, and treatment; rapid diagnosis and advanced technology supplements; complementary medicine service letter; and child service letter. Ayalon Insurance Company Ltd was formerly known as Ayalon Holdings Ltd and changed its name to Ayalon Insurance Company Ltd in July 2022. The company was incorporated in 1976 and is based in Ramat Gan, Israel. Ayalon Insurance Company Ltd is a subsidiary of Wesure Global Tech Ltd.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Ayalon Insurance Company reported revenue of 5.5B ILA in FY2025 versus 3.1B ILA in FY2021, a compound +15.2%/yr. Reported net income was 426M ILA in FY2025.

Growth Quality 81/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
5.5B ILS
Latest YoY
+26.8%
Avg. growth/yr (3Y)
+33.1%
Avg. growth/yr (5Y)
+17.4%
Avg. growth/yr (22Y)
+6.2%
Revenue +15.2%/yr
FY21 3.1B ILA
FY22 2.4B ILA
FY23 3.7B ILA
FY24 4.4B ILA
FY25 5.5B ILA
Net income
FY21 −114M ILA
FY22 167M ILA
FY23 84.9M ILA
FY24 144M ILA
FY25 426M ILA

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Cite: Fair Value Calculator (2026). "Ayalon Insurance Company Fair Value". https://www.fairvalue-calculator.com/stock/AYAL

Peer Group

Insurance - Diversified · 84 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 44 · Bottom 25%
Fair Value upside +47% · Above median
Return on equity (TTM) 33% · Top 25%
Return on assets 2% · Above median
Net margin (TTM) 7% · Below median
Operating margin (TTM) 9% · Below median
Revenue growth 5% · Below median
Dividend yield (TTM) 0.0% · Below median
Debt / equity 0.44× · Higher than median

Valuation Multiples vs Insurance - Diversified median · lower = cheaper

P/E (TTM) 8.0× · Cheaper than 75% of peers
P/B 0.81× · Cheaper than median
P/S (TTM) 0.19× · Cheaper than 75% of peers
P/FCF 6.6× · Pricier than median
EV/EBITDA 1.4× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 96 · sector 44
FUTURE 23 · sector 31
PAST 100 · sector 49
HEALTH 78 · sector 89
DIVIDEND 0 · sector 45

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Insurance - Diversified stocks, each showing price versus our Fair Value estimate (as of Jul 18, 2026).

Stock Price Fair Value vs Fair Value
Berkshire Hathaway Inc BRKB 8,562 MXN 10,844 MXN +27%
Allianz SE ALV €421.00 €369.31 -12%
Zurich Insurance Group ZURN CHF 624.40 CHF 619.80 -1%
AXA SA AXAN 888.28 MXN 1,249 MXN +41%
Assicurazioni Generali S.p.A G €42.90 €12.18 -72%
Sun Life Financial Inc SLF C$114.20 C$87.83 -23%
BB Seguridade Participações S.A BBSE3 R$40.71 R$60.39 +48%
Tryg A/S TRYG kr 154.00 kr 116.45 -24%
PT Sinar Mas Multiartha Tbk SMMA 20,625 IDR 4,176 IDR -80%
Caixa Seguridade Participações S.A CXSE3 R$21.77 R$18.60 -15%

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Frequently asked questions

Is Ayalon Insurance Company (AYAL) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of 195.22 ILA versus a price of 132.80 ILA, about +47% (undervalued).
What is the fair value of AYAL?
Our model-based fair value for Ayalon Insurance Company is 195.22 ILA (as of Jul 18, 2026), built from audited fundamentals. The current price is 132.80 ILA.
What is the quality score of AYAL?
Ayalon Insurance Company has a Quality Score of 48/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Ayalon Insurance Company (AYAL)?
Ayalon Insurance Company reported trailing-twelve-month revenue of about 6.4B ILS (latest available figure, as of Jul 18, 2026).
What is the net profit margin of AYAL?
The net profit margin of Ayalon Insurance Company is about 7.0%, meaning it keeps roughly 7.0% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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