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RSL Electronics Ltd (RSEL) Fair Value & Analysis

Industrials · Il · Market cap 108M ILA

RE RSL Electronics Ltd RSEL · TA
Price10.67 ILA
Fair Value10.60 ILA
Upside-0.7%
Quality74/100
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Mixed Growth
Solidly profitable · 13.3% net margin
Low debt · generates free cash flow
0.07% dividend yield
Ranks above peers (8/11)
Wide moat 66/100
Evidence: High Range 8.14 ILA – 13.05 ILA Share as image

Fair value as of: Jul 16, 2026

From 25 valuation models · updated 25 days ago

Fair value updated Jul 16, 2026, revised from 11.38 ILA to 10.60 ILA (−6.9%) since Jun 24, 2026. Share price +18.4% over the past month.

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

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • Our model range runs from 8.14 ILA (bear) to 13.05 ILA (bull), base 10.60 ILA. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 74/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

18.67 ILA 1.77 ILA Fair Value 10.60 ILA Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range 1.77 ILA – 18.67 ILA · fair‑value band 8.14 ILA – 13.05 ILA · the 10.67 ILA price screens above the 10.60 ILA fair value. Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

RSL Electronics Ltd (RSEL) currently trades at 10.67 ILA, while our model-based Fair Value estimate is 10.60 ILA, implying the stock looks roughly 0.7% fairly valued today. The Quality Score stands at 74/100 (solid quality), in the Industrials 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, RSL Electronics Ltd generated revenue of 41.3M ILA at a net margin of 13.3%. Revenue declined 35.9% year over year. It earns a return on equity of 15.3%. The balance sheet holds a net cash position of 7.8M ILA. Fundamentals as of Jul 16, 2026

Our scenario range runs from 8.14 ILA (bear case) to 13.05 ILA (bull case); at 10.67 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 Industrials peers we cover trades at -59% fair-value upside, at -1%, RSEL 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 19.27 ILA 24.11 ILA 29.45 ILA 80
Residual Income 3.00 ILA 3.56 ILA 5.69 ILA 76
Rev-Margin DCF 11.82 ILA 14.75 ILA 17.42 ILA 74
All 25 models by family
DCF Models
FCF DCF 19.06 ILA 24.42 ILA 30.59 ILA 38
Owner Earnings 5.65 ILA 7.02 ILA 8.60 ILA 31
5Y Revenue Exit 11.82 ILA 14.52 ILA 17.59 ILA 39
5Y EBITDA Exit 12.71 ILA 16.09 ILA 19.67 ILA 41
5Y P/E Exit 13.27 ILA 17.08 ILA 20.75 ILA 38
10Y Revenue Exit 14.90 ILA 17.71 ILA 20.81 ILA 36
10Y EBITDA Exit 15.49 ILA 18.62 ILA 22.11 ILA 37
10Y P/E Exit 15.78 ILA 19.19 ILA 22.77 ILA 35
Earnings-Based
Graham-Dodd 3.69 ILA 8.58 ILA 11.02 ILA 54
PEG = 1.0 1.46 ILA 2.08 ILA 2.71 ILA 46
EPV 5.53 ILA 6.07 ILA 6.50 ILA 59
Dividend Discount
Gordon GGM 12.94 ILA 18.98 ILA 24.35 ILA 70
DDM Multi-Stage 12.94 ILA 17.46 ILA 21.50 ILA 61
Multiples
P/E Multiple 8.54 ILA 11.38 ILA 14.23 ILA 63
P/S Multiple 6.12 ILA 8.16 ILA 10.20 ILA 58
P/B Multiple 6.91 ILA 9.21 ILA 11.52 ILA 55
EV/EBIT 9.93 ILA 12.89 ILA 15.84 ILA 53
EV/EBITDA 8.42 ILA 10.88 ILA 13.33 ILA 54
EV/Revenue 6.19 ILA 8.40 ILA 10.60 ILA 43
Asset-Based
NCAV (Graham) 1.57 ILA 2.10 ILA 3.14 ILA 50
Growth DCF
Growth DCF 19.27 ILA 24.11 ILA 29.45 ILA 80
Rev-Margin DCF 11.82 ILA 14.75 ILA 17.42 ILA 74
Economic Profit
Residual Income 3.00 ILA 3.56 ILA 5.69 ILA 76
ROIC Compounder 5.66 ILA 6.37 ILA 7.05 ILA 72
Growth Earnings
Growth-Adj P/E 6.44 ILA 9.20 ILA 11.97 ILA 68

Widest divergence: Dividend Discount (17.46 ILA) versus Asset-Based (2.10 ILA). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 41.3M ILA
Revenue growth (YoY) -35.9%
Net margin 13.3%
Return on equity 15.3%
Free cash flow 23.3M ILA FY2025
P/E ratio 405.8
More key figures
Operating margin 26.1%
EPS (TTM) 0.0260 ILA
Dividend yield 0.1%
EPS growth (YoY) -63.1%
Net cash 7.8M ILA FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 74/100

Of which business quality 76 · Market factors (momentum, volatility) 28

Profitability 66
Margins and returns on capital today
Quality Growth 12
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 95
Balance sheet, leverage, solvency risk
Investment 84
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 17
Price trend over the last 3–12 months (market factor)
52W Momentum 23
Distance to the 52-week high (market factor)
Net Issuance 82
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

RSL Electronics Ltd. develops, manufactures, and sells control solutions for defense, aerospace, maritime, and transportation sectors in Israel and internationally. The company provides RSL smart sensors with edge AI intelligence for predictive maintenance; and health and usage management system for real-time predictive maintenance.

Full company description

RSL Electronics Ltd. develops, manufactures, and sells control solutions for defense, aerospace, maritime, and transportation sectors in Israel and internationally. The company provides RSL smart sensors with edge AI intelligence for predictive maintenance; and health and usage management system for real-time predictive maintenance. It also offers muzzle velocity radar systems to measure the velocity of a range of artillery, mortars, and high-rate anti-aircraft guns; and control systems, including brake controller, fuel management, and diagnostic engine starting system controller. In addition, the company provides Smart Ship, Smart Wagon, Smart Production, Smart Helo, and Smart UAV solutions. The company was incorporated in 1986 and is based in Migdal HaEmek, Israel.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

RSL Electronics Ltd reported revenue of 41.3M ILA in FY2025 versus 23.8M ILA in FY2021, a compound +14.7%/yr. Reported net income was 5.5M ILA in FY2025, compounding +112.7%/yr from FY2021.

Growth Quality 94/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
41.3M ILS
Latest YoY
−23.6%
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.
+4.8%
Avg. growth/yr (5Y) 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.
+14.8%
Avg. growth/yr (18Y) 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.
−1.4%
Revenue +14.7%/yr
FY21 23.8M ILA
FY22 35.9M ILA
FY23 31.1M ILA
FY24 54.0M ILA
FY25 41.3M ILA
Net income +112.7%/yr
FY21 268K ILA
FY22 7.4M ILA
FY23 5.9M ILA
FY24 16.2M ILA
FY25 5.5M ILA
Character of growth · EPS growth decomposed (2014-2025) +16.8 % p.a.
Revenue per share +5.9 pp

of which total revenue +5.9 pp · buybacks/dilution +0.0 pp

EBIT margin +8.8 pp
Tax rate −0.7 pp
Residual (interest, one-offs) +2.9 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "RSL Electronics Ltd Fair Value". https://www.fairvalue-calculator.com/stock/RSEL

Peer Group

Aerospace & Defense · 226 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 74 · Top 25%
Fair Value upside −1% · Top 25%
Return on equity (TTM) 15% · Above median
Return on assets 8% · Top 25%
Net margin (TTM) 13% · Top 25%
Operating margin (TTM) 26% · Top 25%
Revenue growth -36% · Bottom 25%
Dividend yield (TTM) 0.1% · Bottom 25%
Debt / equity 0.00× · Lower than 75% of peers

Valuation Multiples vs Aerospace & Defense median · lower = cheaper

P/E (TTM) 410.8× · Pricier than 75% of peers
P/FCF 1.5× · 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 32 · sector 0
FUTURE 0 · sector 46
PAST 61 · sector 38
HEALTH 100 · sector 94
DIVIDEND 1 · sector 15

Insider activity: 45/100

Values & ESG

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

Weapons Defense

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

Similar stocks

10 more Aerospace & Defense stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
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RTX Corporation RTX $195.93 $88.37 -55%
Airbus SE 1AIR €213.25 €86.20 -60%
The Boeing Company BA $217.11 $48.20 -78%
China CSSC Holdings 600150 ¥34.31 ¥21.90 -36%
HD Hyundai Heavy Industries Co 329180 466,000 KRW 272,966 KRW -41%
Hanwha Aerospace Co 012450 967,000 KRW 573,468 KRW -41%
ASELSAN Elektronik Sanayi ve Ticaret Anonim Sirketi ASELS 337.50 TRY 130.70 TRY -61%
Saab AB SAABB kr 520.40 kr 212.84 -59%
Kongsberg Gruppen ASA KOG kr 277.50 kr 106.93 -61%

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Frequently asked questions

Is RSL Electronics Ltd (RSEL) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of 10.60 ILA versus a price of 10.67 ILA, about −1% (fairly valued).
What is the fair value of RSEL?
Our model-based fair value for RSL Electronics Ltd is 10.60 ILA (as of Jul 16, 2026), built from audited fundamentals. The current price is 10.67 ILA.
What is the quality score of RSEL?
RSL Electronics Ltd has a Quality Score of 74/100. 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 RSL Electronics Ltd (RSEL)?
RSL Electronics Ltd reported trailing-twelve-month revenue of about 41.3M ILS (latest available figure, as of Jul 16, 2026).
What is the net profit margin of RSEL?
The net profit margin of RSL Electronics Ltd is about 13.3%, meaning it keeps roughly 13.3% of revenue as net income. Based on the latest reported figures.
Does RSL Electronics Ltd pay a dividend?
RSL Electronics Ltd currently shows a dividend yield of about 0.07% relative to its recent price (as of Jul 16, 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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