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Bezeq The Israel Telecommunication Corp (BEZQ) Fair Value & Analysis

Communication Services · Il · Market cap 19.3B ILA

BT Bezeq The Israel Telecommunication Corp BEZQ · TA
Price7.21 ILA
Fair Value7.01 ILA
Upside-2.8%
Quality57/100
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Weak Growth
Solidly profitable · 15.3% net margin
High debt · generates free cash flow
0.06% dividend yield
Mixed vs. peers (8/14)
Wide moat 72/100
Evidence: High Range 4.41 ILA – 12.55 ILA Share as image

Fair value as of: Jul 15, 2026

From 24 valuation models · updated 25 days ago

Share price +7.1% over the past month.

A solid business, currently priced close to our fair value.

What matters now

  • The model range is unusually wide (4.41 ILA to 12.55 ILA). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
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Price vs Fair Value (5 years)

8.46 ILA 2.53 ILA Fair Value 7.01 ILA Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 15, 2026.

How to read this chart

60‑month range 2.53 ILA – 8.46 ILA · fair‑value band 4.41 ILA – 12.55 ILA · the 7.21 ILA price screens above the 7.01 ILA fair value. Dashed = 300-day average. As of Jul 15, 2026.

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Analysis

Bezeq The Israel Telecommunication Corp (BEZQ) currently trades at 7.21 ILA, while our model-based Fair Value estimate is 7.01 ILA, implying the stock looks roughly 2.8% fairly valued today. The Quality Score stands at 57/100 (solid quality), in the Communication Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Bezeq The Israel Telecommunication Corp generated revenue of 8.6B ILA at a net margin of 15.3%. Revenue declined 3.0% year over year. It earns a return on equity of 44.4%. Net debt stands at 9.1B ILA. Fundamentals as of Jul 15, 2026

Our scenario range runs from 4.41 ILA (bear case) to 12.55 ILA (bull case); at 7.21 ILA, the current price sits within 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 Communication Services peers we cover trades at 32% fair-value upside, at -3%, BEZQ screens richer 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
Growth DCF 3.60 ILA 5.73 ILA 9.36 ILA 80
Residual Income 3.19 ILA 3.99 ILA 23.26 ILA 76
Rev-Margin DCF 3.64 ILA 6.65 ILA 10.32 ILA 74
All 24 models by family
DCF Models
FCF DCF 3.34 ILA 5.53 ILA 9.59 ILA 38
Owner Earnings 2.78 ILA 4.76 ILA 8.41 ILA 31
5Y Revenue Exit 3.64 ILA 6.52 ILA 10.71 ILA 39
5Y EBITDA Exit 6.72 ILA 11.85 ILA 18.65 ILA 41
5Y P/E Exit 4.37 ILA 7.78 ILA 11.85 ILA 38
10Y Revenue Exit 3.31 ILA 5.44 ILA 7.75 ILA 36
10Y EBITDA Exit 5.35 ILA 8.74 ILA 12.41 ILA 37
10Y P/E Exit 3.92 ILA 6.22 ILA 8.42 ILA 35
Earnings-Based
Graham-Dodd 3.49 ILA 4.27 ILA 4.80 ILA 54
EPV 4.70 ILA 5.85 ILA 6.86 ILA 59
Dividend Discount
Gordon GGM 3.24 ILA 3.55 ILA 4.02 ILA 70
DDM Multi-Stage 3.24 ILA 4.07 ILA 5.23 ILA 61
Multiples
P/E Multiple 8.47 ILA 11.30 ILA 14.12 ILA 63
P/S Multiple 6.55 ILA 8.73 ILA 10.91 ILA 58
P/B Multiple 2.81 ILA 3.75 ILA 4.68 ILA 55
EV/EBIT 7.69 ILA 11.00 ILA 14.31 ILA 53
EV/EBITDA 10.71 ILA 15.03 ILA 19.34 ILA 54
EV/Revenue 4.38 ILA 7.22 ILA 10.06 ILA 43
Asset-Based
NCAV (Graham) 0.5400 ILA 0.7200 ILA 1.07 ILA 50
Growth DCF
Growth DCF 3.60 ILA 5.73 ILA 9.36 ILA 80
Rev-Margin DCF 3.64 ILA 6.65 ILA 10.32 ILA 74
Economic Profit
Residual Income 3.19 ILA 3.99 ILA 23.26 ILA 76
ROIC Compounder 4.70 ILA 6.15 ILA 7.63 ILA 72
Growth Earnings
Growth-Adj P/E 5.97 ILA 8.53 ILA 11.09 ILA 68

Widest divergence: Multiples (8.73 ILA) versus Asset-Based (0.7200 ILA). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 8.6B ILA
Revenue growth (YoY) -3.0%
Net margin 15.3%
Return on equity 44.4%
Free cash flow 1.6B ILA FY2025
P/E ratio 5.5
More key figures
Operating margin 19.5%
EPS (TTM) 1.28 ILA
Dividend yield 0.1%
EPS growth (YoY) -27.3%
Net debt 9.1B ILA FY2025

Figures from reported company fundamentals · as of Jul 15, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 57/100

Of which business quality 56 · Market factors (momentum, volatility) 60

Profitability 70
Margins and returns on capital today
Quality Growth 51
Are margins and returns improving?
Cashflow 74
Earnings quality: real cash, not paper profit
Fin. Strength 22
Balance sheet, leverage, solvency risk
Investment 25
Disciplined investing over empire-building
Low Volatility 86
Calm price path (market factor)
Momentum 44
Price trend over the last 3–12 months (market factor)
52W Momentum 58
Distance to the 52-week high (market factor)
Net Issuance 87
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

Bezeq The Israel Telecommunication Corp. Ltd provides communications services to business and private customers in Israel. The company operates through Domestic Fixed Communications; Cellular Communications; Internet Services, International Communication, and ICT Solutions for Businesses; and Television and communication segments.

Full company description

Bezeq The Israel Telecommunication Corp. Ltd provides communications services to business and private customers in Israel. The company operates through Domestic Fixed Communications; Cellular Communications; Internet Services, International Communication, and ICT Solutions for Businesses; and Television and communication segments. The company offers telephony services, including basic telephony services on the home telephone line; ancillary services, such as voice mail and caller ID; national numbering services; and internet access infrastructure services. It also provides data transmission and communication services; cloud and digital services; wholesale services; and other services, including broadcasting services, and contractor services, as well as sell end equipment and devices. In addition, the company offers fiber internet, business search B144, high-quality WiFi throughout the house, online bill payment, moving online, speed test, and technical support and troubleshooting services. The company was incorporated in 1980 and is based in Holon, Israel.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Bezeq The Israel Telecommunication Corp reported revenue of 8.7B ILA in FY2025 versus 8.8B ILA in FY2021, a compound −0.3%/yr. Reported net income was 1.4B ILA in FY2025, compounding +4.6%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
8.7B ILS
Latest YoY
−2.0%
Avg. growth/yr (3Y)
−1.2%
Avg. growth/yr (5Y)
+0.0%
Avg. growth/yr (25Y)
+0.1%
Revenue −0.3%/yr
FY21 8.8B ILA
FY22 9.0B ILA
FY23 9.1B ILA
FY24 8.9B ILA
FY25 8.7B ILA
Net income +4.6%/yr
FY21 1.2B ILA
FY22 1.0B ILA
FY23 1.2B ILA
FY24 1.1B ILA
FY25 1.4B ILA

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Cite: Fair Value Calculator (2026). "Bezeq The Israel Telecommunication Corp Fair Value". https://www.fairvalue-calculator.com/stock/BEZQ

Peer Group

Telecom Services · 252 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 57 · Above median
Fair Value upside −3% · Below median
Return on equity (TTM) 44% · Top 25%
Return on assets 8% · Top 25%
Net margin (TTM) 15% · Top 25%
Operating margin (TTM) 20% · Above median
Revenue growth -3% · Below median
Dividend yield (TTM) 0.1% · Bottom 25%
Debt / equity 2.31× · Higher than 75% of peers

Valuation Multiples vs Telecom Services median · lower = cheaper

P/E (TTM) 5.5× · Cheaper than 75% of peers
P/B 2.13× · Pricier than median
P/S (TTM) 0.73× · Cheaper than median
P/FCF 4.0× · Pricier than median
EV/EBITDA 3.9× · 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 30 · sector 30
FUTURE 0 · sector 15
PAST 100 · sector 28
HEALTH 0 · sector 89
DIVIDEND 1 · sector 72

Insider activity: 40/100

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 Telecom Services stocks, each showing price versus our Fair Value estimate (as of Jul 15, 2026).

Stock Price Fair Value vs Fair Value
China Mobile Limited 600941 ¥89.98 ¥109.88 +22%
T-Mobile US, Inc TMUS $187.61 $172.67 -8%
Bharti Airtel Limited BHARTIARTL ₹1,922 ₹941.55 -51%
China Telecom Corporation 601728 ¥6.01 ¥8.36 +39%
América Móvil, S.A. AMXB 23.07 MXN 30.35 MXN +32%
Vodafone Group VODN 259.50 MXN 507.27 MXN +95%
Advanced Info Service Public Company ADVANC 379.00 THB 286.77 THB -24%
Chunghwa Telecom Co 2412 133.50 TWD 100.00 TWD -25%
China Unicom (Hong Kong) Limited 0762 HK$6.50 HK$13.03 +100%
Telefónica, S.A TEFN 75.67 MXN 111.01 MXN +47%

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Frequently asked questions

Is Bezeq The Israel Telecommunication Corp (BEZQ) overvalued or undervalued?
As of Jul 15, 2026, our model estimates a fair value of 7.01 ILA versus a price of 7.21 ILA, about −3% (fairly valued).
What is the fair value of BEZQ?
Our model-based fair value for Bezeq The Israel Telecommunication Corp is 7.01 ILA (as of Jul 15, 2026), built from audited fundamentals. The current price is 7.21 ILA.
What is the quality score of BEZQ?
Bezeq The Israel Telecommunication Corp has a Quality Score of 57/100. 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 Bezeq The Israel Telecommunication Corp (BEZQ)?
Bezeq The Israel Telecommunication Corp reported trailing-twelve-month revenue of about 8.6B ILS (latest available figure, as of Jul 15, 2026).
What is the net profit margin of BEZQ?
The net profit margin of Bezeq The Israel Telecommunication Corp is about 15.3%, meaning it keeps roughly 15.3% of revenue as net income. Based on the latest reported figures.
Does Bezeq The Israel Telecommunication Corp pay a dividend?
Bezeq The Israel Telecommunication Corp currently shows a dividend yield of about 0.05% relative to its recent price (as of Jul 15, 2026).

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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