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Bezeq Israeli Telecommunication Corp Ltd (BEZQ) Fair Value & Analysis

Communication Services · Il · Market cap 19.3B ILA · ISIN IL0002300114

What is Bezeq Israeli Telecommunication Corp Ltd really worth?

BI Bezeq Israeli Telecommunication Corp Ltd BEZQ · TA
Price7.89 ILA
Fair Value6.28 ILA
Upside−20.4%
Quality57/100

A solid business, but trading 26% above our fair value of 6.28 ILA.

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Strengths

✓Solidly profitable · 15.3% net margin
✓Ranks above peers (9/14)
✓Wide moat 72/100

Risks

!Weak Growth (revenue 5y +0.0 %/yr)
!High debt · generates free cash flow
!Weak on valuation: 6 out of 100

For context

·5.17% dividend yield
Evidence: High Range 3.66 ILA – 11.09 ILA

Fair value as of: Aug 13, 2026

From 24 valuation models · updated 22 days ago

Fair value updated Aug 13, 2026, revised from 7.01 ILA to 6.28 ILA (−10.4%) since Jul 15, 2026. Share price +9.1% over the past month.

What runs behind every stock

26 valuation models 8 families, DCF to NCAV 37 quality factors margins, balance sheet, cashflow, debt 6 AI factors moat, what no ratio measures 2,000+ data points verified, per stock, median

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The model range is unusually wide (3.66 ILA to 11.09 ILA). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (57/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

8.78 ILA 2.63 ILA Fair Value 6.28 ILA Apr 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range 2.63 ILA – 8.78 ILA · fair‑value band 3.66 ILA – 11.09 ILA · the 7.89 ILA price screens above the 6.28 ILA fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Bezeq Israeli Telecommunication Corp Ltd (BEZQ) currently trades at 7.89 ILA, while our model-based Fair Value estimate is 6.28 ILA, implying the stock looks roughly 25.6% overvalued today. The Quality Score stands at 57/100 (solid quality), in the Communication Services sector. Bull case: the Multiples group reads highest at a median of 8.73 ILA per share, and 7 of the 24 models we run sit above the 7.89 ILA price. Bear case: the Asset-Based group reads lowest at 0.7200 ILA, and 17 of the 24 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Bezeq Israeli Telecommunication Corp Ltd generated revenue of 8.6B ILA at a net margin of 15.3%. Revenue declined 3.0% year over year. It earns a return on equity of 44.4%. Net debt stands at 9.1B ILA. Fundamentals as of Aug 13, 2026

Our scenario range runs from 3.66 ILA (bear case) to 11.09 ILA (bull case); at 7.89 ILA, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Communication Services peers we cover trades at 30% fair-value upside, at −20%, BEZQ screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly 0.5925 ILS per share, which is 9.4 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model 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. Evidence
Highest evidence
FCF DCF 3.34 ILA 5.53 ILA 9.59 ILA 78
Growth DCF 3.60 ILA 5.73 ILA 9.36 ILA 77
Owner Earnings 2.78 ILA 4.76 ILA 8.41 ILA 74
All 24 models by family
DCF Models
FCF DCF 3.34 ILA 5.53 ILA 9.59 ILA 78
Owner Earnings 2.78 ILA 4.76 ILA 8.41 ILA 74
5Y Revenue Exit 3.64 ILA 6.52 ILA 10.71 ILA 70
5Y EBITDA Exit 6.72 ILA 11.85 ILA 18.65 ILA 73
5Y P/E Exit 4.37 ILA 7.78 ILA 11.85 ILA 69
10Y Revenue Exit 3.31 ILA 5.44 ILA 7.75 ILA 66
10Y EBITDA Exit 5.35 ILA 8.74 ILA 12.41 ILA 68
10Y P/E Exit 3.92 ILA 6.22 ILA 8.42 ILA 64
Earnings-Based
Graham-Dodd 3.49 ILA 4.27 ILA 4.80 ILA 67
EPV 4.70 ILA 5.85 ILA 6.86 ILA 74
Dividend Discount
Gordon GGM 3.24 ILA 3.55 ILA 4.02 ILA 69
DDM Multi-Stage 3.24 ILA 4.07 ILA 5.23 ILA 67
Multiples
P/E Multiple 8.47 ILA 11.30 ILA 14.12 ILA 63
P/S Multiple 6.55 ILA 8.73 ILA 10.91 ILA 58
P/B Multiple 2.81 ILA 3.75 ILA 4.68 ILA 55
EV/EBIT 7.69 ILA 11.00 ILA 14.31 ILA 65
EV/EBITDA 10.71 ILA 15.03 ILA 19.34 ILA 67
EV/Revenue 4.38 ILA 7.22 ILA 10.06 ILA 52
Asset-Based
NCAV (Graham) 0.5400 ILA 0.7200 ILA 1.07 ILA 54
Growth DCF
Growth DCF 3.60 ILA 5.73 ILA 9.36 ILA 77
Rev-Margin DCF 3.64 ILA 6.65 ILA 10.32 ILA 71
Economic Profit
Residual Income 3.19 ILA 3.99 ILA 23.26 ILA 64
ROIC Compounder 4.70 ILA 6.15 ILA 7.63 ILA 72
Growth Earnings
Growth-Adj P/E 5.97 ILA 8.53 ILA 11.09 ILA 67

Widest divergence: Multiples (8.73 ILA) versus Asset-Based (0.7200 ILA). Highest evidence: FCF DCF (78).

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Key figures & financial health

P/E ratio 6.2
P/S ratio 1.00 P/E × margin
EPS (TTM) 1.28 ILA price ÷ EPS = P/E 6.2
Dividend yield 5.2% payout 31.9%
Net margin 16.3% FY2025
Return on equity 44.4% TTM
More key figures
Profitability
Return on assets (EBIT) 12.7% avg 5y
Operating margin 19.5% TTM
Growth
Revenue (TTM) 8.6B ILA TTM
Revenue growth (YoY) −3.0% 3y avg −1.2%
EPS growth (YoY) −27.3%
Balance sheet & cash flow
Free cash flow 1.6B ILA FY2025
Net debt 9.1B ILA FY2025 · ≈ 5.8 yrs of FCF

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 57/100

Of which business quality 56 · Market factors (momentum, volatility) 66

Profitability 70
Margins and returns on capital today
Quality Growth 51
Are margins and returns improving?
Cashflow 74
Earnings quality: real cash, not paper profit
Fin. Strength 22
Balance sheet, leverage, solvency risk
Investment 25
Disciplined investing over empire-building
Low Volatility 87
Calm price path (market factor)
Momentum 49
Price trend over the last 3–12 months (market factor)
52W Momentum 71
Distance to the 52-week high (market factor)
Net Issuance 87
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Bezeq The Israel Telecommunication Corp. Ltd provides communications services to business and private customers in Israel. The company operates through Domestic Fixed Communications; Cellular Communications; Internet Services, International Communication, and ICT Solutions for Businesses; and Television and communication segments.

Full company description

Bezeq The Israel Telecommunication Corp. Ltd provides communications services to business and private customers in Israel. The company operates through Domestic Fixed Communications; Cellular Communications; Internet Services, International Communication, and ICT Solutions for Businesses; and Television and communication segments. The company offers telephony services, including basic telephony services on the home telephone line; ancillary services, such as voice mail and caller ID; national numbering services; and internet access infrastructure services. It also provides data transmission and communication services; cloud and digital services; wholesale services; and other services, including broadcasting services, and contractor services, as well as sell end equipment and devices. In addition, the company offers fiber internet, business search B144, high-quality WiFi throughout the house, online bill payment, moving online, speed test, and technical support and troubleshooting services. The company was incorporated in 1980 and is based in Holon, Israel.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Bezeq Israeli Telecommunication Corp Ltd reported revenue of 8.7B ILS in FY2025 versus 8.8B ILS in FY2021, a compound −0.3%/yr. Reported net income was 1.4B ILS in FY2025, compounding +4.6%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
8.7B ILS
Latest YoY
−2.0%
Avg. revenue growth/yr (3Y) ⓘ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.
−1.2%
Avg. revenue growth/yr (5Y) ⓘ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.
+0.0%
Avg. revenue growth/yr (25Y) ⓘ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.
+0.1%
Value creation/yr (5Y) ⓘEarnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+12.6% (7.4 + 5.2)
Revenue −0.3%/yr
FY21 8.8B ILS
FY22 9.0B ILS
FY23 9.1B ILS
FY24 8.9B ILS
FY25 8.7B ILS
Net income +4.6%/yr
FY21 1.2B ILS
FY22 1.0B ILS
FY23 1.2B ILS
FY24 1.1B ILS
FY25 1.4B ILS
Character of growth · EPS growth decomposed (2014-2025) −3.6 % p.a.
Revenue per share −1.1 %

of which total revenue −1.0 % · buybacks/dilution −0.1 %

EBIT margin −2.9 %
Tax rate +1.2 %
Residual (interest, one-offs) −0.9 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

BEZQ screens 26% overvalued. Compare with China Mobile Limited →

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Bezeq Israeli Telecommunication Corp Ltd · Fair Value
6.28 ILA −26%Fair Value
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Cite: Fair Value Calculator (2026). "Bezeq Israeli Telecommunication Corp Ltd Fair Value". https://www.fairvalue-calculator.com/stock/BEZQ

Peer Group

Telecom Services · 248 stocks

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.

Quality Score 57 · Above median
Fair Value upside −20% · Below median
Return on equity (TTM) 44% · Top 25%
Return on assets 8% · Top 25%
Net margin (TTM) 15% · Top 25%
Operating margin (TTM) 20% · Above median
Revenue growth −3% · Bottom 25%
Dividend yield (TTM) 5.2% · Above median
Debt / equity 2.31× · Higher than 75% of peers

Valuation Multiples vs Telecom Services median · lower = cheaper

P/E (TTM) 6.2× · Cheaper than 75% of peers
P/B 2.17× · Pricier than median
P/S (TTM) 0.74× · Cheaper than median
P/FCF 4.1× · Pricier than median
EV/EBITDA 3.9× · Cheaper than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE6 · sector 28
FUTURE0 · sector 16
PAST100 · sector 28
HEALTH0 · sector 89
DIVIDEND100 · sector 76

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Telecom Services stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
China Mobile Limited 600941 ¥96.11 ¥109.88 +14%
T-Mobile US, Inc TMUS $177.75 $172.67 −3%
Verizon Communications Inc VZ $49.43 $64.43 +30%
AT&T Inc T $26.01 $43.97 +69%
Bharti Airtel Limited BHARTIARTL ₹1,935 ₹941.48 −51%
Comcast Corporation CMCSA $26.41 $95.42 +261%
China Telecom Corporation 601728 ¥6.43 ¥8.36 +30%
América Móvil, S.A. AMX $23.50 $39.45 +68%
Singapore Telecommunications Limited Z77 4.29 SGD 3.03 SGD −29%
Swisscom AG SCMN CHF 627.50 CHF 463.92 −26%

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Frequently asked questions

Is Bezeq Israeli Telecommunication Corp Ltd (BEZQ) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of 6.28 ILA versus a price of 7.89 ILA, about −20% upside (overvalued).
What is the fair value of BEZQ?
Our model-based fair value for Bezeq Israeli Telecommunication Corp Ltd is 6.28 ILA (as of Aug 13, 2026), built from audited fundamentals. The current price: 7.89 ILA.
What is the quality score of BEZQ?
Bezeq Israeli Telecommunication Corp Ltd has a Quality Score of 57/100. 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 revenue of Bezeq Israeli Telecommunication Corp Ltd (BEZQ)?
Bezeq Israeli Telecommunication Corp Ltd reported trailing-twelve-month revenue of about 8.6B ILS (latest available figure, as of Aug 13, 2026).
What is the net profit margin of BEZQ?
The net profit margin of Bezeq Israeli Telecommunication Corp Ltd is about 15.3%, meaning it keeps roughly 15.3% of revenue as net income. Based on the latest reported figures.
Does Bezeq Israeli Telecommunication Corp Ltd pay a dividend?
Bezeq Israeli Telecommunication Corp Ltd currently shows a dividend yield of about 5.17% relative to its recent price (as of Aug 13, 2026).
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