RSL Electronics Ltd (RSEL) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of RSL Electronics Ltd stock ILS 11.38, price ILS 7.21, upside +57.9%, quality 73 out of 100. Rating: strongly undervalued. Calculated from audited financials with 25 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 3, 2026.
How to read this chart
60‑month range 2.01 ILS – 21.24 ILS · fair‑value band 8.54 ILS – 14.23 ILS · the 7.21 ILS price screens below the 11.38 ILS fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 2 fiscal years are left out: there the valuation rested on only a fraction of the usual models. As of Nov 3, 2026.
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RSL Electronics Ltd. develops, manufactures, and sells control solutions for defense, aerospace, maritime, and transportation sectors in Israel and internationally.
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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.
Stock analysis
RSL Electronics Ltd (RSEL) currently trades at 7.21 ILS, while our model-based Fair Value estimate is 11.38 ILS, implying the stock looks roughly 37% undervalued today.
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Valuation
Bull case: the Growth DCF group reads highest at a median of 20.99 ILS per share, and 20 of the 25 models we run sit above the 7.21 ILS price.
Bear case: the Asset-Based group reads lowest at 2.46 ILS, and 5 of the 25 models stay below the price. Data coverage for this calculation is medium.
Scenario range: 8.54 ILS (bear) to 14.23 ILS (bull), the price of 7.21 ILS sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 73/100 (solid quality), in the Industrials sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
RSL Electronics Ltd reported revenue of 41.3M ILS in FY2025 versus 23.8M ILS in FY2021, a compound +14.7%/yr. Reported net income was 5.5M ILS in FY2025, compounding +112.7%/yr from FY2021. FY2021 was a trough year, so the rate overstates the trend.
Key figures
Market cap 74.0M ILS Micro · P/E ratio 277.2 · P/S ratio 36.8 · EPS (TTM) 0.0260 ILS · Dividend yield 10.3% · Net margin 13.3% · Return on equity 17.4% · Return on assets (EBIT) 16.8% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 49 out of 100 (low confidence).
What moves the price
The share trades about 66% below its 52-week high and at its 52-week low, currently below its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −23% fair-value upside, at 58%, RSEL screens cheaper than that median.
Fair Value models
Bear8.54 ILSFair Value 11.38 ILSBull14.23 ILS
Price 7.21 ILS · Upside +57.9%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models.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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.89/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
−23.6%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+4.8%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+14.8%
Start year 2020 (pandemic). Over 10 years: +4.8% a year
Revenue growth 18 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
−1.4%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+18.4%
Earnings growth per share plus dividend.
Earnings per share, growth per year+8.1%
Dividend (yield on the price)10.3%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.8.1% vs 10.1%, steady
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.−8% → 17%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−23.6%
The company could shrink this much every year for the next five years and today's price would still be justified.
What forecasts expect
n/a
No analyst forecast available.
After inflation (Israel: IMF forecast 2.1% a year to 2030, 1.7% from 2016 to 2025) that is about −25.1% a year for the price.
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Aerospace & Defense · 238 stocks
Beats the industry median on 7/10 measures
Overall it ranks above its industry peers.
Valuation
Quality Score73 · Top 25%
Fair Value upside+57.9% · Top 25%
Profitability
Return on equity (12 months)17.4% · Above median
Return on assets12.3% · Top 25%
Net margin (12 months)9.8% · Above median
Operating margin (12 months)−21.7% · Bottom 25%
Growth and dividend
Revenue growth (quarter YoY)−7.9% · Bottom 25%
Dividend yield (12 months)10.3% · Top 25%
Balance sheet
Debt / equity0.00× · Lowest 25%
Valuation Multiplesvs Aerospace & Defense median · lower = cheaper
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Is RSL Electronics Ltd (RSEL) overvalued or undervalued?
As of Nov 3, 2026, our model estimates a fair value of 11.38 ILS versus a price of 7.21 ILS, about +58% upside (undervalued).
What is the fair value of RSEL?
Our model-based fair value for RSL Electronics Ltd is 11.38 ILS (as of Nov 3, 2026), built from audited fundamentals. The current price: 7.21 ILS.
What is the quality score of RSEL?
RSL Electronics Ltd has a Quality Score of 73/100. 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 price target for RSL Electronics Ltd (RSEL)?
Our model-based price target is the fair value of 11.38 ILS (as of Nov 3, 2026) from 25 valuation models. Cautious scenario 8.54 ILS, optimistic scenario 14.23 ILS. It is a calculation from audited fundamentals, not an analyst target.
What is the RSL Electronics Ltd stock forecast for 2026?
Our models put fair value at 11.38 ILS, about +58% upside versus a price of 7.21 ILS (undervalued). Cautious scenario 8.54 ILS, optimistic scenario 14.23 ILS. The calculation is refreshed regularly with new filings.
What is the revenue of RSL Electronics Ltd (RSEL)?
RSL Electronics Ltd reported trailing-twelve-month revenue of about 40.4M ILS (latest available figure, as of Nov 3, 2026).
Does RSL Electronics Ltd pay a dividend?
RSL Electronics Ltd currently shows a dividend yield of 10.28% relative to its recent price (as of Nov 3, 2026).
How much is the dividend of RSL Electronics Ltd (RSEL) and when is the ex-dividend date?
RSL Electronics Ltd pays a dividend of 0.741 ILS per share a year, a dividend yield of 10.3%. The last ex-dividend date was Apr 23, 2026. Free cash flow covers the dividend 3.10 times. Our assessment: Sustainable. Payout and cash coverage both look sustainable.
What growth is priced into RSL Electronics Ltd (RSEL)?
For today's price to be fair in a discounted-cash-flow model, RSL Electronics Ltd would have to grow free cash flow by -23.6 % per year for five years (discount rate 11.6 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +14.8 % per year. As of Nov 3, 2026.
What discount rate (WACC) does the fair value of RSEL use?
Our models discount RSL Electronics Ltd at 11.6 %: a base by market capitalisation (nano), country premium for Israel. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For RSL Electronics Ltd that is -23.6 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (11.6 %) and the same formula as our fair value.
How much growth has RSL Electronics Ltd (RSEL) delivered so far?
Over the past 5 years revenue at RSL Electronics Ltd grew +14.8 % a year. The price currently implies free-cash-flow growth of -23.6 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of RSL Electronics Ltd (RSEL) growing?
The median revenue growth in the sector is +7.8 % a year. That is the yardstick for the growth priced into RSL Electronics Ltd (-23.6 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of RSL Electronics Ltd (RSEL)?
The free-cash-flow yield on the price is 31.90 %: that much free cash flow RSL Electronics Ltd produces per unit of market value. When it exceeds the discount rate of our models (11.6 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of RSL Electronics Ltd (RSEL)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For RSL Electronics Ltd it is 11.38 ILS per share (as of Nov 3, 2026), against a price of 7.21 ILS. It is the blended result of 25 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is RSL Electronics Ltd stock overvalued or undervalued in 2026?
As of Nov 3, 2026, RSEL trades below its calculated fair value: price 7.21 ILS, fair value 11.38 ILS, a gap of about +58% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of RSEL?
No. The price is what the market pays today (7.21 ILS); the fair value is what the company's own numbers justify (11.38 ILS). For RSL Electronics Ltd the two are 4.17 ILS per share apart. That gap is exactly why we show both numbers side by side.
How much is RSL Electronics Ltd worth?
The market values RSL Electronics Ltd at about 74.0M ILS (market capitalisation, as of Nov 3, 2026). Per share that is 7.21 ILS; our models calculate a fair value of 11.38 ILS per share.
What do the bullish and bearish scenarios say about RSEL?
Our models span a range for RSL Electronics Ltd: cautious scenario 8.54 ILS, base 11.38 ILS, optimistic 14.23 ILS per share (as of Nov 3, 2026, price 7.21 ILS). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of RSEL?
RSL Electronics Ltd trades at a price-to-earnings ratio of 277.2 (as of Nov 3, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of 11.38 ILS is built from several models across several years.
How solid is the balance sheet of RSL Electronics Ltd (RSEL)?
Balance-sheet figures for RSL Electronics Ltd (as of Nov 3, 2026): return on equity 17.4%, debt of 0.00 per unit of equity. They feed the Quality Score of 73/100, which measures business quality independently of the share price.
How far is RSEL from its 52-week high?
RSL Electronics Ltd trades at 7.21 ILS, about 66% below its 52-week high of 21.24 ILS and at the low of 7.21 ILS (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of 11.38 ILS is for.
Which stocks are comparable to RSL Electronics Ltd?
From the same area (Industrials) we also value General Electric Company, RTX Corporation, Airbus SE, Lockheed Martin Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is RSL Electronics Ltd stock attractive at the current price?
The data as of Nov 3, 2026: price 7.21 ILS, calculated fair value 11.38 ILS (+58%), Quality Score 73/100, from 25 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of RSEL calculated?
We run RSL Electronics Ltd through 25 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of 11.38 ILS builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. RSL Electronics Ltd currently trades 37% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of RSL Electronics Ltd (RSEL)?
The closing price on Nov 6, 2026 was 7.21 ILS. Our model-based fair value is 11.38 ILS, about +58% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with RSL Electronics Ltd right now?
The price is below even our cautious bear case (8.54 ILS). The market is more pessimistic than our downside scenario. Solid quality (73/100) at a price below fair value, the discount is the argument here, not the business quality.
Where does the earnings growth of RSL Electronics Ltd (RSEL) come from?
Earnings per share at RSL Electronics Ltd grew +16.8 % a year from 2014 to 2025. Broken into its drivers: revenue per share +5.9 %, EBIT margin +8.8 %, tax rate −0.7 %, residual (interest, one-offs) +2.2 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of RSL Electronics Ltd
How large is the market capitalisation of RSL Electronics Ltd (RSEL)?
The market capitalisation of RSL Electronics Ltd is 74.0M ILS. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of RSL Electronics Ltd (RSEL)?
The price-to-sales ratio of RSL Electronics Ltd is 36.8 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of RSL Electronics Ltd (RSEL)?
Earnings per share at RSL Electronics Ltd are 0.0260 ILS (price ÷ EPS = P/E 277.2). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of RSL Electronics Ltd (RSEL)?
The dividend yield of RSL Electronics Ltd is 10.3%. Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of RSL Electronics Ltd (RSEL)?
The net margin of RSL Electronics Ltd is 13.3% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of RSL Electronics Ltd (RSEL)?
The return on equity (ROE) of RSL Electronics Ltd is 17.4% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of RSL Electronics Ltd (RSEL)?
On an EBIT basis the return on assets of RSL Electronics Ltd is 16.8% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of RSL Electronics Ltd (RSEL)?
The operating margin of RSL Electronics Ltd is −21.7% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at RSL Electronics Ltd (RSEL)?
Revenue at RSL Electronics Ltd is growing −7.9% versus a year earlier (3y avg +4.8%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at RSL Electronics Ltd (RSEL)?
Earnings per share at RSL Electronics Ltd are growing −63.1% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does RSL Electronics Ltd (RSEL) hold?
RSL Electronics Ltd holds more cash than debt, 7.8M ILS net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Some data
Nov 3, 2026