Electra (TASE:ELTR) shares have shown steady movement lately, prompting some investors to take a closer look at what might be driving interest. The stock’s recent performance provides an opportunity for a fresh evaluation.
See our latest analysis for Electra.
Electra’s current share price of $110.0 marks a period of renewed momentum, with a notable 16.77% 90-day share price return and an impressive 28.67% total shareholder return over the past year. Investors appear increasingly optimistic as sentiment shifts in favor of the stock, which may suggest growth potential.
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This strong run naturally raises a key question: Is Electra trading below its true value, or are expectations of future growth already fully reflected in the current share price?
Electra’s shares are currently trading at a price-to-earnings (P/E) ratio of 38.7x, which reflects optimism built into the last close price of $110.0. This P/E is higher than that of similar companies in the construction sector, suggesting expectations of stronger earnings or future growth.
The P/E ratio represents how much investors are willing to pay today for a single unit of the company’s current earnings. For Electra, this means the market is pricing its profitability at a significant premium. This is often justified by anticipated earnings expansion, but it can also signal overvaluation if future prospects do not materialize.
Broadly speaking, Electra’s P/E of 38.7x is well below its peer average of 51x. While the stock trades at a high valuation, it remains more modestly valued relative to its immediate competitors. However, compared to the wider Asian Construction industry, which averages a P/E of just 15.1x, Electra is still considered expensive. This difference suggests investors may be focusing on company-specific strengths or an exceptional market position.
See what the numbers say about this price — find out in our valuation breakdown.
Result: Price-to-Earnings of 38.7x (ABOUT RIGHT)
However, risks remain, including limited visibility on future revenue growth and the possibility that current optimism is already reflected in Electra shares.
Find out about the key risks to this Electra narrative.
A different perspective comes from our DCF model, which estimates Electra’s fair value at ₪109.56, just below its current price of ₪110. This suggests the stock might be slightly overvalued according to this method and raises questions for investors about which outlook to trust.
Look into how the SWS DCF model arrives at its fair value.
ELTR Discounted Cash Flow as at Nov 2025
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A great starting point for your Electra research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.
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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.
Companies discussed in this article include ELTR.TA.
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