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First International Bank of Israel (TASE:FIBI) Could Be 18% Below Fair Value On Q2 Earnings

Simply Wall St · 1d ago

First International Bank of Israel (TASE:FIBI) caught investor attention after reporting second quarter 2026 results, alongside Board approval of an ILS 558 million dividend that equates to a 6.1% yield as of June 30.

See our latest analysis for First International Bank of Israel.

At a share price of ₪232.8, First International Bank of Israel has seen its 1 day share price return of 1.88% follow a weaker recent patch, with the 90 day share price return down 6.99% but the 5 year total shareholder return at 179.34% suggesting longer term momentum remains intact.

If the recent dividend news has you thinking about income and growth elsewhere in the market, it could be a good time to broaden your search with the 423 dividend fortresses

First International Bank of Israel now offers a high payout alongside share price gains over the past few years, yet recent returns have softened. Does the current valuation still leave meaningful upside on the table, or has most of it already played out?

Price-to-Earnings of 10.8x: Is it justified?

On Simply Wall St's numbers, First International Bank of Israel trades on a P/E of 10.8x, which screens as slightly expensive relative to both its peer group and the wider Asian Banks industry.

The P/E ratio compares the current share price with earnings per share and is a common way investors think about what they are paying for each unit of profit. For a bank like First International Bank of Israel, this often reflects what the market is willing to pay for its profitability, balance sheet strength and perceived stability of earnings.

In this case, the 10.8x P/E is marginally higher than the Asian Banks industry average of 10.4x and just above the peer average of 10.7x. That suggests the stock carries a small valuation premium, even with high quality earnings and a recent year of earnings that declined 8.6% alongside lower net profit margins of 31.6% compared with 33.7% last year.

Investors weighing this valuation against the SWS DCF model may also note that the shares trade at ₪232.8 compared with an SWS fair value estimate of ₪283.05. On these figures, FIBI is trading at roughly 17.8% below that modelled fair value.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Earnings of 10.8x (OVERVALUED)

However, First International Bank of Israel still faces risks if earnings pressure persists alongside a 10.8x P/E, or if sector sentiment toward Asian banks weakens further.

Find out about the key risks to this First International Bank of Israel narrative.

Another view on First International Bank of Israel’s valuation

The P/E of 10.8x paints First International Bank of Israel as slightly expensive relative to peers, yet the SWS DCF model points the other way. At a share price of ₪232.8 versus a modelled fair value of ₪283.05, the stock screens as undervalued by about 17.8%. Which signal do you trust more?

For a closer look at how this cash flow based view is built and what might change it over time, Look into how the SWS DCF model arrives at its fair value.

FIBI Discounted Cash Flow as at Aug 2026
FIBI Discounted Cash Flow as at Aug 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out First International Bank of Israel for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 267 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

With First International Bank of Israel showing both potential upside and clear pressure points, this is a moment to act quickly and review the numbers yourself. To consider both sides of the story in one place, start with the 1 key reward and 1 important warning sign.

Looking for more investment ideas beyond First International Bank of Israel?

If First International Bank of Israel has sharpened your focus on valuation and income, do not stop here. The broader market still holds plenty of compelling stock ideas.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.