---
title: "A Look At Azrieli Group’s (TASE:AZRG) Valuation As It Joins Cohen And Steers Realty Majors Indexes"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/285920391.md"
description: "Azrieli Group (TASE:AZRG) is set to be included in Cohen & Steers' Global Realty Majors and International Realty Majors Portfolio Indexes, enhancing its visibility. The stock is currently priced at ₪512.9, reflecting a 9.6% increase over the past month and a 39.9% rise year-to-date. Despite a high P/E ratio of 32.9x, significantly above industry averages, earnings are expected to grow at 22.1% annually. However, concerns arise from a DCF value of ₪172.4, indicating potential overvaluation and risks if financial conditions tighten. Investors are advised to weigh risks against rewards."
datetime: "2026-05-11T10:06:35.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/285920391.md)
  - [en](https://longbridge.com/en/news/285920391.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/285920391.md)
---

# A Look At Azrieli Group’s (TASE:AZRG) Valuation As It Joins Cohen And Steers Realty Majors Indexes

## Why Azrieli Group is back on investors’ radar

Cohen & Steers is set to add Azrieli Group (TASE:AZRG) to its Global Realty Majors and International Realty Majors Portfolio Indexes, a move that can influence passive flows and global visibility.

See our latest analysis for Azrieli Group.

Azrieli Group’s recent index inclusion news arrives during a strong run. The share price is at ₪512.9 after a 1-month share price return of 9.6% and a year-to-date share price return of 39.9%, supported by a very large 1-year total shareholder return of about 94%, which points to firm positive momentum rather than a short-lived bounce.

If this kind of real estate driven interest has you thinking about where else capital is moving, it could be worth scanning 102 top founder-led companies

With Azrieli Group already delivering strong recent returns and trading above the latest analyst price target of ₪451.5, the key question now is whether markets have run ahead of fundamentals or if there is still a mispriced growth story here.

## Price-to-Earnings of 32.9x: Is it justified?

Azrieli Group trades on a P/E of 32.9x compared with 15.7x for the IL Real Estate industry and a 16.4x peer average, so the market is assigning a clear premium at the current ₪512.9 share price.

The P/E ratio compares the share price with earnings per share and is often used for companies that already generate consistent profits, such as real estate groups with income producing assets.

For Azrieli Group, a 32.9x P/E suggests investors are willing to pay roughly double the sector and peer averages, even though revenue is forecast to grow 3.1% per year, slower than both the IL market and the 20% threshold often associated with high growth stories. At the same time, earnings are forecast to grow 22.1% per year and are expected to outpace the IL market, which can help explain why some investors accept a higher earnings multiple despite a low current and forecast Return on Equity.

That premium is also set against other quality flags and pressure points, such as interest payments that are not well covered by earnings, a reported DCF value of ₪172.4 that sits well below the current price, and a value score of 0. All of these points underline how far sentiment has already moved compared with more traditional valuation checks.

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

**Result: Price-to-Earnings of 32.9x (OVERVALUED)**

However, that premium sits alongside a value score of 0 and interest costs that are not well covered, which could quickly challenge sentiment if financial conditions tighten.

Find out about the key risks to this Azrieli Group narrative.

## Another view on valuation

Azrieli Group already looks expensive on its 32.9x P/E, but the SWS DCF model presents an even starker picture, with an estimated future cash flow value of ₪172.4 per share compared with the current ₪512.9. This suggests a meaningful gap between price and value and raises the question of how comfortable investors are with the potential downside risk.

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

AZRG Discounted Cash Flow as at May 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Azrieli Group 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 225 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

Given the mix of enthusiasm and concern running through this story, it makes sense to look at the key numbers yourself and decide how comfortable you are with the trade off between risk and reward, then weigh those factors against the 2 key rewards and 2 important warning signs

## Looking for more investment ideas?

If you are serious about building a stronger portfolio, do not stop at a single stock. Use focused stock lists to quickly spot ideas that fit your style.

-   Target quality at a discount by scanning companies that pass strict value and fundamentals checks through the 225 high quality undervalued stocks
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-   Spot potential future standouts early by searching through the screener containing 540 high quality undiscovered gems before they appear on everyone else's radar.

_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._

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