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Elad Software Systems Ltd (ELAD) Fair Value & Analysis

Technology · Il · Market cap 560M ILA

ES Elad Software Systems Ltd ELAD · TA
Price10.85 ILA
Fair Value12.84 ILA
Upside+18.4%
Quality48/100
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Healthy Growth
Thin margins · 5.2% net margin
generates free cash flow
Ranks above peers (11/12)
Moderate moat 55/100
Evidence: High Range 9.63 ILA – 16.06 ILA Share as image

Fair value as of: Jul 19, 2026

From 24 valuation models · updated 22 days ago

Share price −9.2% over the past month.

Below-average quality, screening 18% undervalued on our models.

What matters now

  • Our model range runs from 9.63 ILA (bear) to 16.06 ILA (bull), base 12.84 ILA. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 48/100 (below-average quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (18 months)

15.07 ILA 7.35 ILA Fair Value 12.84 ILA Feb 2025 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.

How to read this chart

18‑month range 7.35 ILA – 15.07 ILA · fair‑value band 9.63 ILA – 16.06 ILA · the 10.85 ILA price screens below the 12.84 ILA fair value. Dashed = 300-day average. As of Jul 19, 2026.

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Analysis

Elad Software Systems Ltd (ELAD) currently trades at 10.85 ILA, while our model-based Fair Value estimate is 12.84 ILA, implying the stock looks roughly 18.4% undervalued today. The Quality Score stands at 48/100 (below-average quality), in the Technology 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, Elad Software Systems Ltd generated revenue of 516M ILA at a net margin of 5.2%. Revenue grew 11.8% year over year. It earns a return on equity of 27.4%. The balance sheet holds a net cash position of 25.4M ILA. Fundamentals as of Jul 19, 2026

Our scenario range runs from 9.63 ILA (bear case) to 16.06 ILA (bull case); at 10.85 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 Technology peers we cover trades at -27% fair-value upside, at 18%, ELAD 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 Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF 17.46 ILA 28.62 ILA 46.17 ILA 72
Growth-Adj P/E 19.10 ILA 27.28 ILA 35.46 ILA 68
Rev-Margin DCF 13.21 ILA 20.44 ILA 35.69 ILA 67
All 24 models by family
DCF Models
FCF DCF 18.49 ILA 26.02 ILA 48.50 ILA 38
Owner Earnings 8.86 ILA 16.09 ILA 29.49 ILA 31
5Y Revenue Exit 12.25 ILA 18.13 ILA 30.31 ILA 39
5Y EBITDA Exit 16.15 ILA 26.01 ILA 45.31 ILA 41
5Y P/E Exit 15.21 ILA 29.37 ILA 48.32 ILA 38
10Y Revenue Exit 14.16 ILA 24.90 ILA 30.66 ILA 36
10Y EBITDA Exit 17.01 ILA 32.57 ILA 58.87 ILA 37
10Y P/E Exit 16.38 ILA 30.71 ILA 53.48 ILA 35
Earnings-Based
Graham-Dodd 3.67 ILA 25.60 ILA 35.92 ILA 54
Lynch FV 13.22 ILA 18.89 ILA 24.56 ILA 50
PEG = 1.0 13.22 ILA 18.89 ILA 24.56 ILA 46
EPV 7.33 ILA 8.04 ILA 8.63 ILA 59
Multiples
P/E Multiple 11.33 ILA 15.11 ILA 18.89 ILA 63
P/S Multiple 6.88 ILA 9.18 ILA 11.47 ILA 58
P/B Multiple 6.88 ILA 9.18 ILA 11.47 ILA 55
EV/EBIT 15.13 ILA 19.47 ILA 23.81 ILA 53
EV/EBITDA 14.83 ILA 19.06 ILA 23.30 ILA 54
EV/Revenue 8.70 ILA 11.52 ILA 14.34 ILA 43
Asset-Based
NCAV (Graham) 1.64 ILA 2.20 ILA 3.28 ILA 50
Growth DCF
Growth DCF 17.46 ILA 28.62 ILA 46.17 ILA 72
Rev-Margin DCF 13.21 ILA 20.44 ILA 35.69 ILA 67
Economic Profit
Residual Income 3.20 ILA 4.11 ILA 10.36 ILA 61
ROIC Compounder 8.39 ILA 10.70 ILA 13.38 ILA 67
Growth Earnings
Growth-Adj P/E 19.10 ILA 27.28 ILA 35.46 ILA 68

Widest divergence: Growth Earnings (27.28 ILA) versus Asset-Based (2.20 ILA). Highest evidence: Growth DCF (72).

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Key figures & financial health

Revenue (TTM) 516M ILA
Revenue growth (YoY) +7.5%
Net margin 5.2%
Return on equity 27.4%
Free cash flow 62.1M ILA FY2025
P/E ratio 18.7
More key figures
Operating margin 6.0%
EPS (TTM) 0.5800 ILA
EPS growth (YoY) +40.4%
Net cash 25.4M ILA FY2025

Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 48/100

Of which business quality 54 · Market factors (momentum, volatility) 45

Profitability 61
Margins and returns on capital today
Quality Growth 39
Are margins and returns improving?
Cashflow 73
Earnings quality: real cash, not paper profit
Fin. Strength 83
Balance sheet, leverage, solvency risk
Investment 33
Disciplined investing over empire-building
Low Volatility 76
Calm price path (market factor)
Momentum 37
Price trend over the last 3–12 months (market factor)
52W Momentum 25
Distance to the 52-week high (market factor)
Net Issuance 0
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

Elad Software Systems Ltd. provides information technology solutions and services, and consulting and management activities in Israel.

Full company description

Elad Software Systems Ltd. provides information technology solutions and services, and consulting and management activities in Israel. It offers Chameleon, a software for electronic medical record system for hospitals and medical institutions; customer relationship management, digital, and web systems; business intelligence tools; and data-based management solutions. The company also provides training courses under the Netcraft Academy name; and maintenance and support, outsourcing, and professional services. It serves banking, transport, health, retail, insurance, technology, industry, media, public, and real estate sectors, as well as government offices. The company was incorporated in 1982 and is headquartered in Tel Aviv-Yafo, Israel.

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

Revenue & earnings trend

FY2022 – FY2025 · reported fiscal years

Elad Software Systems Ltd reported revenue of 535M ILA in FY2025 versus 113M ILA in FY2022, a compound +67.7%/yr. Reported net income was 27.9M ILA in FY2025, compounding +124.5%/yr from FY2022.

Growth Quality 95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
535M ILS
Latest YoY
+299.5%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+67.7%
Revenue +67.7%/yr
FY22 113M ILA
FY23 127M ILA
FY24 134M ILA
FY25 535M ILA
Net income +124.5%/yr
FY22 2.5M ILA
FY23 4.0M ILA
FY24 6.2M ILA
FY25 27.9M ILA

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Cite: Fair Value Calculator (2026). "Elad Software Systems Ltd Fair Value". https://www.fairvalue-calculator.com/stock/ELAD

Peer Group

Software - Application · 708 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 48 · Below median
Fair Value upside +18% · Top 25%
Return on equity (TTM) 27% · Top 25%
Return on assets 8% · Top 25%
Net margin (TTM) 5% · Above median
Operating margin (TTM) 6% · Above median
Revenue growth 8% · Above median

Valuation Multiples vs Software - Application median · lower = cheaper

P/E (TTM) 18.7× · Cheaper than median
P/B 1.08× · Cheaper than median
P/S (TTM) 0.36× · Cheaper than 75% of peers
P/FCF 2.9× · Cheaper than median
EV/EBITDA 1.7× · 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 58 · sector 0
FUTURE 38 · sector 38
PAST 100 · sector 13
HEALTH 0 · sector 98
DIVIDEND 0 · sector 28

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 Software - Application stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).

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Uber Technologies, Inc UBER $72.67 $51.11 -30%
Salesforce, Inc CRM $170.77 $182.10 +7%
ServiceNow, Inc NOW $107.71 $33.12 -69%
Cadence Design Systems, Inc CDNS $384.17 $80.41 -79%
Snowflake Inc SNOW $271.87 $34.04 -87%
Adobe Inc ADBE $230.61 $379.48 +65%
Automatic Data Processing, Inc ADP $241.92 $177.51 -27%
Intuit Inc INTU $291.09 $258.69 -11%

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Frequently asked questions

Is Elad Software Systems Ltd (ELAD) overvalued or undervalued?
As of Jul 19, 2026, our model estimates a fair value of 12.84 ILA versus a price of 10.85 ILA, about +18% (undervalued).
What is the fair value of ELAD?
Our model-based fair value for Elad Software Systems Ltd is 12.84 ILA (as of Jul 19, 2026), built from audited fundamentals. The current price is 10.85 ILA.
What is the quality score of ELAD?
Elad Software Systems Ltd 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 Elad Software Systems Ltd (ELAD)?
Elad Software Systems Ltd reported trailing-twelve-month revenue of about 516M ILS (latest available figure, as of Jul 19, 2026).
What is the net profit margin of ELAD?
The net profit margin of Elad Software Systems Ltd is about 5.2%, meaning it keeps roughly 5.2% 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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