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Israel Discount Bank Limited (DSCT) Fair Value & Analysis

Financial Services · Il · Market cap 38.5B ILA

ID Israel Discount Bank Limited DSCT · TA
Price31.49 ILA
Fair Value43.99 ILA
Upside+39.7%
Quality55/100
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Mixed Growth
Highly profitable · 32.0% net margin
Low debt · generates free cash flow
Ranks above peers (8/13)
Wide moat 68/100
Evidence: High Range 32.99 ILA – 54.98 ILA Share as image

Fair value as of: Jul 17, 2026

From 26 valuation models · updated 21 days ago

Share price +3.0% over the past month.

A solid business, screening 40% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (32.99 ILA). The market is more pessimistic than our downside scenario.
  • Solid quality (55/100) 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)

39.37 ILA 11.02 ILA Fair Value 43.99 ILA Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 17, 2026.

How to read this chart

60‑month range 11.02 ILA – 39.37 ILA · fair‑value band 32.99 ILA – 54.98 ILA · the 31.49 ILA price screens below the 43.99 ILA fair value. Dashed = 300-day average. As of Jul 17, 2026.

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Analysis

Israel Discount Bank Limited (DSCT) currently trades at 31.49 ILA, while our model-based Fair Value estimate is 43.99 ILA, implying the stock looks roughly 39.7% undervalued today. We read business quality at 55/100 (solid 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, Israel Discount Bank Limited generated revenue of 12.6B ILA at a net margin of 32.0%. Revenue declined 8.0% year over year. It earns a return on equity of 11.2%. The balance sheet holds a net cash position of 14.2B ILA. Fundamentals as of Jul 17, 2026

Our scenario range runs from 32.99 ILA (bear case) to 54.98 ILA (bull case); at 31.49 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 42% fair-value upside, at 40%, DSCT 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 145.41 ILA 211.69 ILA 316.79 ILA 80
Residual Income 25.79 ILA 30.66 ILA 61.28 ILA 76
Rev-Margin DCF 96.75 ILA 124.27 ILA 157.59 ILA 74
All 26 models by family
DCF Models
FCF DCF 144.37 ILA 211.83 ILA 319.09 ILA 38
Owner Earnings 77.21 ILA 102.31 ILA 142.22 ILA 31
5Y Revenue Exit 96.75 ILA 123.19 ILA 155.96 ILA 39
5Y EBITDA Exit 107.06 ILA 143.07 ILA 184.88 ILA 41
5Y P/E Exit 103.89 ILA 136.95 ILA 171.76 ILA 38
10Y Revenue Exit 111.51 ILA 140.42 ILA 178.29 ILA 36
10Y EBITDA Exit 119.30 ILA 154.45 ILA 200.99 ILA 37
10Y P/E Exit 117.25 ILA 150.13 ILA 190.70 ILA 35
Earnings-Based
Graham-Dodd 23.01 ILA 82.38 ILA 110.99 ILA 54
Lynch FV 19.42 ILA 27.75 ILA 36.07 ILA 50
PEG = 1.0 19.42 ILA 27.75 ILA 36.07 ILA 46
EPV 68.74 ILA 73.96 ILA 78.53 ILA 59
Dividend Discount
Gordon GGM 12.29 ILA 25.56 ILA 40.55 ILA 70
DDM Multi-Stage 12.29 ILA 21.55 ILA 26.82 ILA 61
Multiples
P/E Multiple 50.75 ILA 67.67 ILA 84.59 ILA 63
P/S Multiple 38.74 ILA 51.66 ILA 64.57 ILA 58
P/B Multiple 43.14 ILA 57.52 ILA 71.90 ILA 55
EV/EBIT 107.51 ILA 130.88 ILA 154.24 ILA 53
EV/EBITDA 93.51 ILA 112.21 ILA 130.90 ILA 54
EV/Revenue 73.58 ILA 89.07 ILA 104.57 ILA 43
Asset-Based
NCAV (Graham) 13.82 ILA 18.51 ILA 27.63 ILA 50
Growth DCF
Growth DCF 145.41 ILA 211.69 ILA 316.79 ILA 80
Rev-Margin DCF 96.75 ILA 124.27 ILA 157.59 ILA 74
Economic Profit
Residual Income 25.79 ILA 30.66 ILA 61.28 ILA 76
ROIC Compounder 68.74 ILA 73.96 ILA 78.53 ILA 72
Growth Earnings
Growth-Adj P/E 36.04 ILA 51.49 ILA 66.93 ILA 68

Widest divergence: DCF Models (140.42 ILA) versus Asset-Based (18.51 ILA). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 12.6B ILA
Revenue growth (YoY) -8.0%
Net margin 32.0%
Return on equity 11.2%
Free cash flow 11.1B ILA FY2025
P/E ratio 9.4
More key figures
Operating margin 48.7%
EPS (TTM) 3.17 ILA
Dividend yield 0.1%
EPS growth (YoY) -9.7%
Net cash 14.2B ILA FY2025

Figures from reported company fundamentals · as of Jul 17, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 55/100

Of which business quality 58 · Market factors (momentum, volatility) 48

Profitability 30
Margins and returns on capital today
Quality Growth 25
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 41
Balance sheet, leverage, solvency risk
Investment 67
Disciplined investing over empire-building
Low Volatility 84
Calm price path (market factor)
Momentum 33
Price trend over the last 3–12 months (market factor)
52W Momentum 33
Distance to the 52-week high (market factor)
Net Issuance 90
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

Israel Discount Bank Limited, together with its subsidiaries, provides various banking and financial services in Israel, Europe, and North America. The company operates through Retail Banking, Middle Market Banking, Corporate Banking, Financial Operations, Discount Capital, Discount Bancorp, and Other segments.

Full company description

Israel Discount Bank Limited, together with its subsidiaries, provides various banking and financial services in Israel, Europe, and North America. The company operates through Retail Banking, Middle Market Banking, Corporate Banking, Financial Operations, Discount Capital, Discount Bancorp, and Other segments. Its personal banking services include checking accounts, deposits and savings products, loans, mortgages, credit cards, pension advice, capital market products, and tax exemption services. The company's business banking services comprise lending of securities, credit facilities, short- and long-term deposits, OTC trading, and brokerage and transaction room services; foreign securities; interest products; foreign exchange products; and consulting for investment, pension, and mortgage services. In addition, it provides Israeli private banking and international banking. Further, it manages securities investment portfolios for private customers, corporations, not-for-profit organizations, and institutional bodies; initiates and assists public offerings and private placements; and invests in companies, private equity funds, venture capital funds, and banking field, as well as provides underwriting and distribution services. Additionally, the company offers digital financial services; operates a payment platform; and engages in accepting deposits, as well as provides consumer credit and credit to small and medium businesses. Israel Discount Bank Limited was incorporated in 1935 and is based in Rishon LeZion, Israel.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Israel Discount Bank Limited reported revenue of 25.3B ILA in FY2025 versus 11.4B ILA in FY2021, a compound +22.1%/yr. Reported net income was 4.1B ILA in FY2025, compounding +10.5%/yr from FY2021.

Growth Quality 89/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
25.3B ILS
Latest YoY
−7.3%
Avg. growth/yr (3Y)
+17.7%
Avg. growth/yr (5Y)
+18.2%
Avg. growth/yr (25Y)
+4.2%
Revenue +22.1%/yr
FY21 11.4B ILA
FY22 15.5B ILA
FY23 25.4B ILA
FY24 27.3B ILA
FY25 25.3B ILA
Net income +10.5%/yr
FY21 2.8B ILA
FY22 3.5B ILA
FY23 4.2B ILA
FY24 4.3B ILA
FY25 4.1B ILA

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Cite: Fair Value Calculator (2026). "Israel Discount Bank Limited Fair Value". https://www.fairvalue-calculator.com/stock/DSCT

Peer Group

Banks - Regional · 1082 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 58 · Below median
Fair Value upside +40% · Above median
Return on equity (TTM) 11% · Above median
Return on assets 1% · Below median
Net margin (TTM) 32% · Above median
Operating margin (TTM) 49% · Above median
Revenue growth -8% · Bottom 25%
Dividend yield (TTM) 0.1% · Bottom 25%
Debt / equity 0.39× · Higher than median

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 9.9× · Cheaper than median
P/B 0.37× · Cheaper than 75% of peers
P/S (TTM) 1.00× · Cheaper than 75% of peers
P/FCF 1.1× · Cheaper than median

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 86 · sector 39
FUTURE 0 · sector 44
PAST 45 · sector 41
HEALTH 81 · sector 85
DIVIDEND 1 · sector 49

Insider activity: 45/100

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 Banks - Regional stocks, each showing price versus our Fair Value estimate (as of Jul 17, 2026).

Stock Price Fair Value vs Fair Value
PT Bank Central Asia Tbk BBCA 6,175 IDR 6,087 IDR -1%
KB Financial Group 105560 184,400 KRW 213,797 KRW +16%
PT Bank Rakyat Indonesia (Persero) Tbk BBRI 2,970 IDR 4,891 IDR +65%
PT Bank Mandiri (Persero) Tbk BMRI 4,310 IDR 7,841 IDR +82%
Banco Bradesco S.A BBD 5,120 ARS 10,240 ARS +100%
Shinhan Financial Group 055550 107,900 KRW 137,259 KRW +27%
Hana Financial Group 086790 136,800 KRW 193,969 KRW +42%
Lloyds Banking Group LYG 4,138 ARS 8,275 ARS +100%
Banco de Chile, CHILE 193.10 CLP 152.55 CLP -21%
Joint Stock Commercial Bank for Foreign Trade of Vietnam, VCB 59,400 VND 84,201 VND +42%

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Frequently asked questions

Is Israel Discount Bank Limited (DSCT) overvalued or undervalued?
As of Jul 17, 2026, our model estimates a fair value of 43.99 ILA versus a price of 31.49 ILA, about +40% (undervalued).
What is the fair value of DSCT?
Our model-based fair value for Israel Discount Bank Limited is 43.99 ILA (as of Jul 17, 2026), built from audited fundamentals. The current price is 31.49 ILA.
What is the quality score of DSCT?
Israel Discount Bank Limited has a Quality Score of 55/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Israel Discount Bank Limited (DSCT)?
Israel Discount Bank Limited reported trailing-twelve-month revenue of about 12.6B ILS (latest available figure, as of Jul 17, 2026).
What is the net profit margin of DSCT?
The net profit margin of Israel Discount Bank Limited is about 32.0%, meaning it keeps roughly 32.0% of revenue as net income. Based on the latest reported figures.
Does Israel Discount Bank Limited pay a dividend?
Israel Discount Bank Limited currently shows a dividend yield of about 0.05% relative to its recent price (as of Jul 17, 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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