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Clal Insurance Enterprises Holdings (TASE:CLIS) Posts Strong Q2 Earnings, Is It Still Undervalued?

Simply Wall St · 1d ago

Q2 2026 earnings spark fresh focus on Clal Insurance Enterprises Holdings

Clal Insurance Enterprises Holdings (TASE:CLIS) drew fresh attention on 19 August 2026 after reporting Q2 and first half 2026 results, including net income of ₪617 million for the quarter and ₪1.054b for the half year.

Basic earnings per share from continuing operations reached ₪7.63 in the second quarter and ₪13.08 for the first six months of 2026. Diluted earnings per share were ₪7.42 for Q2 and ₪12.67 for the half year.

See our latest analysis for Clal Insurance Enterprises Holdings.

The Q2 release has arrived after a mixed price stretch for Clal Insurance Enterprises Holdings, with the share price up 8.16% over the past week but down 14.33% over the past three months. Over a longer horizon, the 36.43% one-year total shareholder return and very large three-year total shareholder return of more than 7x suggest that longer term momentum has been stronger than recent trading implies.

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For Clal Insurance Enterprises Holdings, the recent bounce after a weaker three month stretch raises a simple challenge. Are investors now reacting to steadier earnings progress, or just resetting sentiment around the stock’s story and valuation?

Price-to-earnings of 8.2x for Clal Insurance Enterprises Holdings: Is it justified?

On the latest figures, Clal Insurance Enterprises Holdings trades on a P/E of 8.2x, which is described as good value both against its peers at 12x and the wider Asian insurance industry at 11.3x. That framing sits alongside the current share price of ₪242.7 and recent share price swings, which some investors may see as an opportunity to reassess what they are paying for each shekel of earnings.

The P/E ratio simply compares the current share price to earnings per share. For an insurer like Clal Insurance Enterprises Holdings, it gives a quick sense of how much investors are willing to pay today for the company’s reported profits. A lower P/E compared to peers can suggest the market is applying a discount to those earnings, whether due to perceived risks, uncertainty around future growth, or just slower recognition of recent performance.

In this case, the Statements data describe CLIS as good value versus both its peer average P/E of 12x and the Asian insurance industry average of 11.3x. That is a sizeable gap. It implies investors are currently paying less per unit of earnings than they are for many comparable insurers. CLIS has reported 29.4% earnings growth per year over the past 5 years and 52.5% earnings growth over the past year. With no fair ratio available, there is no regression based target level for the P/E multiple, so the comparison rests on how the current 8.2x stacks up against peers rather than a model based benchmark.

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

Result: Price-to-earnings of 8.2x (UNDERVALUED)

However, you should still watch for shifts in Israel’s insurance regulation and any change in credit conditions that could affect Clal Insurance Enterprises Holdings’ broader finance activities.

Find out about the key risks to this Clal Insurance Enterprises Holdings narrative.

Another view on Clal Insurance Enterprises Holdings' valuation

The P/E comparison presents Clal Insurance Enterprises Holdings as good value, and the SWS DCF model also points to the stock trading below its estimated future cash flow value of ₪272.85 per share, around 11% above the current ₪242.7 price. If both methods lean the same way, what risk is the market still pricing in?

Look into how the SWS DCF model arrives at its fair value.

CLIS Discounted Cash Flow as at Aug 2026
CLIS 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 Clal Insurance Enterprises Holdings 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 sentiment around Clal Insurance Enterprises Holdings pulled in different directions, it helps to move quickly and review the underlying data yourself. To see what investors are optimistic about, take a closer look at the 2 key rewards.

Looking for more investment ideas beyond Clal Insurance Enterprises Holdings?

If this latest earnings update has sharpened your focus on Clal Insurance Enterprises Holdings, use that momentum to widen your opportunity set with a few targeted 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.