Israel Stock Market PE Ratio

The Israel Stock Market currently trades at a current P/E ratio of 14.58 as of October 24, 2025.

Over the past five years, the median P/E has been 12.14, putting today's valuation in the 96.7th percentile of that range. Looking at the longer 10-year period, where the median sits at 10.93, the current reading ranks in the 98.3th percentile - a level historically associated with Expensive pricing. The 20-year median of 10.82 provides additional context, with the current ratio in the 94.2th percentile of that extended timeframe.

This analysis is based on the iShares MSCI Israel ETF (EIS) which serves as the benchmark for the Israel market.

Since December 1996, the iShares MSCI Israel ETF has recorded a median P/E ratio of 11.66 over 29 years. Against this full historical backdrop, the current valuation sits in the 76.9th percentile of all recorded readings, indicating that the market is trading well above its long-term median.

Historical P/E Comparison

The table below compares the current P/E Ratio (14.58) with its historical median and percentile rankings.

Time Period	Median PE Ratio	Percentile Rank	Valuation
1 Year	13.72	83.3	Expensive
5 Year	12.14	96.7	Expensive
10 Year	10.93	98.3	Expensive
20 Year	10.82	94.2	Expensive
Since Dec 1996	11.66	76.9	Overvalued

Returns vs P/E Ratio

Over the past decade, the PE rose from 10.6 (29.5th percentile) to 14.58 (98.3th percentile). Annualized total return over this period was 7.1%. Percentile rank indicates position within the historical distribution. Elevated valuations do not necessarily imply immediate low returns; markets can remain richly valued for extended periods, but this warrants caution for longer-horizon return assumptions.

Time Period	Starting PE Ratio	Starting Percentile	Total Return	Annualized Return
1 Year	13.19	68.1	+48.8%	+48.8%
3 Year	8.49	12.2	+68.9%	+19.1%
5 Year	11.85	57.1	+83.6%	+12.9%
10 Year	10.57	29.5	+98%	+7.1%

Historical Data (1996-2025)

Date	Current PE Ratio
Oct 2025	14.58
Sep 2025	14.63
Aug 2025	15.10
Jul 2025	13.94
Jun 2025	14.40
May 2025	12.75
Apr 2025	13.15
Mar 2025	12.71
Feb 2025	13.67
Jan 2025	13.75
Dec 2024	13.23
Nov 2024	13.70
Oct 2024	13.19
Sep 2024	12.75
Aug 2024	13.13
Jul 2024	11.79
Jun 2024	12.02
May 2024	12.02
Apr 2024	11.99
Mar 2024	12.20
Feb 2024	12.15
Jan 2024	10.42
Dec 2023	10.84
Nov 2023	8.28
Oct 2023	8.01
Sep 2023	9.52
Aug 2023	8.52
Jul 2023	8.89
Jun 2023	7.99
May 2023	7.25
Apr 2023	7.07
Mar 2023	6.63
Feb 2023	8.98
Jan 2023	8.66
Dec 2022	9.21
Nov 2022	8.94
Oct 2022	8.49
Sep 2022	8.48
Aug 2022	8.81
Jul 2022	8.09
Jun 2022	8.27
May 2022	11.79
Apr 2022	12.14
Mar 2022	11.69
Feb 2022	12.97
Jan 2022	14
Dec 2021	12.04
Nov 2021	12.07
Oct 2021	12.65
Sep 2021	12.37
Aug 2021	13.28
Jul 2021	13.24
Jun 2021	13.24
May 2021	13.57
Apr 2021	13.18
Mar 2021	13.67
Feb 2021	13.67
Jan 2021	13.37
Dec 2020	13
Nov 2020	12.13
Oct 2020	11.85
Sep 2020	11.58
Aug 2020	11.75
Jul 2020	11.90
Jun 2020	11.90
May 2020	10.63
Apr 2020	10.61
Mar 2020	7.60
Feb 2020	11.28
Jan 2020	10.67
Dec 2019	10.61
Nov 2019	10.61
Oct 2019	9.91
Sep 2019	9.91
Aug 2019	10.19
Jul 2019	10.77
Jun 2019	10.48
May 2019	11.01
Apr 2019	11.31
Mar 2019	11.31
Feb 2019	10.68
Jan 2019	10.49
Dec 2018	9.74
Nov 2018	10.33
Oct 2018	10.88
Sep 2018	11.66
Aug 2018	11.51
Jul 2018	11.34
Jun 2018	11.34
May 2018	10.68
Apr 2018	10.43
Mar 2018	10.95
Feb 2018	10.93
Jan 2018	10.93
Dec 2017	10.93
Nov 2017	10.93
Oct 2017	10.93
Sep 2017	10.93
Aug 2017	10.93
Jul 2017	10.93
Jun 2017	10.61
May 2017	10.31
Apr 2017	10.62
Mar 2017	10.62
Feb 2017	10.03
Jan 2017	9.80
Dec 2016	9.37
Nov 2016	9.32
Oct 2016	9.16
Sep 2016	10.04
Aug 2016	10.66
Jul 2016	9.99
Jun 2016	10.19
May 2016	10.40
Apr 2016	10.72
Mar 2016	10.56
Feb 2016	10.56
Jan 2016	11.11
Dec 2015	10.95
Nov 2015	10.68
Oct 2015	10.57
Sep 2015	11.09
Aug 2015	12.41
Jul 2015	11
Jun 2015	11
May 2015	11.64
Apr 2015	11.64
Mar 2015	10.49
Feb 2015	10.56
Jan 2015	10.38
Dec 2014	10.64
Nov 2014	10.64
Oct 2014	9.98
Sep 2014	10.29
Aug 2014	10.63
Jul 2014	10.63
Jun 2014	10.40
May 2014	10.45
Apr 2014	10.45
Mar 2014	9.84
Feb 2014	9.42
Jan 2014	8.28
Dec 2013	8.68
Nov 2013	8.20
Oct 2013	7.97
Sep 2013	7.97
Aug 2013	7.96
Jul 2013	8.14
Jun 2013	8.07
May 2013	8.07
Apr 2013	8.37
Mar 2013	8.20
Feb 2013	8.20
Jan 2013	8.12
Dec 2012	8.12
Nov 2012	7.90
Oct 2012	7.90
Sep 2012	7.65
Aug 2012	7.26
Jul 2012	7.01
Jun 2012	7.01
May 2012	7.47
Apr 2012	7.99
Mar 2012	7.99
Feb 2012	7.91
Jan 2012	7.71
Dec 2011	7.53
Nov 2011	7
Oct 2011	6.99
Sep 2011	7.39
Aug 2011	7.95
Jul 2011	9.27
Jun 2011	9.23
May 2011	9.23
Apr 2011	9.69
Mar 2011	9.69
Feb 2011	10.38
Jan 2011	10.62
Dec 2010	10.26
Nov 2010	10.27
Oct 2010	10.27
Sep 2010	9.80
Aug 2010	10.45
Jul 2010	9.88
Jun 2010	10.18
May 2010	11.01
Apr 2010	12.10
Mar 2010	11.93
Feb 2010	11.93
Jan 2010	12.22
Dec 2009	11.86
Nov 2009	11.10
Oct 2009	11.67
Sep 2009	11.75
Aug 2009	12.18
Jul 2009	11.46
Jun 2009	11.76
May 2009	11.60
Apr 2009	11.24
Mar 2009	10.80
Feb 2009	6.97
Jan 2009	5.70
Dec 2008	8.72
Nov 2008	8.53
Oct 2008	7.93
Sep 2008	9.29
Aug 2008	10.98
Jul 2008	11.46
Jun 2008	12.01
May 2008	11.97
Apr 2008	11.16
Mar 2008	11.82
Feb 2008	11.82
Jan 2008	14.40
Dec 2007	14.03
Nov 2007	14.59
Oct 2007	14.88
Sep 2007	14.03
Aug 2007	13.77
Jul 2007	15.19
Jun 2007	14.75
May 2007	14.75
Apr 2007	14.46
Mar 2007	14.69
Feb 2007	14.69
Jan 2007	13.14
Dec 2006	13.33
Nov 2006	13.33
Oct 2006	13.68
Sep 2006	13.29
Aug 2006	12.33
Jul 2006	12.33
Jun 2006	13.57
May 2006	14.64
Apr 2006	15.91
Mar 2006	15.61
Feb 2006	15.76
Jan 2006	16.39
Dec 2005	13.70
Nov 2005	12.99
Oct 2005	12.92
Sep 2005	13.27
Aug 2005	14.43
Jul 2005	14.71
Jun 2005	14.95
May 2005	15.57
Apr 2005	15.65
Mar 2005	15.65
Feb 2005	15.44
Jan 2005	16.03
Dec 2004	14.98
Nov 2004	13.83
Oct 2004	13.09
Sep 2004	13.94
Aug 2004	14.34
Jul 2004	16.57
Jun 2004	16.71
May 2004	17
Apr 2004	15.67
Mar 2004	15.51
Feb 2004	19.90
Jan 2004	16.12
Dec 2003	18.12
Nov 2003	18.74
Oct 2003	19.67
Sep 2003	17.92
Aug 2003	18.20
Jul 2003	21.65
Jun 2003	18.05
May 2003	15.51
Apr 2003	15.39
Mar 2003	15.39
Feb 2003	15.43
Jan 2003	15.64
Dec 2002	15.21
Nov 2002	12.39
Oct 2002	16.59
Sep 2002	16.81
Aug 2002	19.29
Jul 2002	19.29
Jun 2002	18.72
May 2002	15.40
Apr 2002	16.85
Mar 2002	17.67
Feb 2002	18.34
Jan 2002	19.84
Dec 2001	19.23
Nov 2001	18.33
Oct 2001	18.02
Sep 2001	16.33
Aug 2001	17
Jul 2001	16.91
Jun 2001	16.91
May 2001	17.43
Apr 2001	18.48
Mar 2001	20.72
Feb 2001	20.71
Jan 2001	22.21
Dec 2000	23.14
Nov 2000	23.69
Oct 2000	25.84
Sep 2000	24.85
Aug 2000	23.64
Jul 2000	23.66
Jun 2000	21.02
May 2000	18.12
Apr 2000	17.82
Mar 2000	21.24
Feb 2000	19.72
Jan 2000	18.77
Dec 1999	16.55
Nov 1999	14.02
Oct 1999	11.60
Sep 1999	11.39
Aug 1999	12.95
Jul 1999	14.65
Jun 1999	15.05
May 1999	15.33
Apr 1999	14.47
Mar 1999	13.30
Feb 1999	11.83
Jan 1999	11.96
Dec 1998	11.24
Nov 1998	10.86
Oct 1998	10.46
Sep 1998	11.61
Aug 1998	12.31
Jul 1998	13.63
Jun 1998	13.63
May 1998	12.71
Apr 1998	12.33
Mar 1998	10.59
Feb 1998	10.14
Jan 1998	10.39
Dec 1997	10.94
Nov 1997	11.54
Oct 1997	10.92
Sep 1997	11.59
Aug 1997	11.81
Jul 1997	12.32
Jun 1997	11.72
May 1997	9.94
Apr 1997	9.67
Mar 1997	10.40
Feb 1997	8.25
Jan 1997	11.12
Dec 1996	11.12

Regional Peer Comparison

The table below shows a comparison of the current P/E Ratio (14.58) with regional peer markets.

Country	PE Ratio	Percentile Rank	Rating
China	14.52	92.50	Expensive
Japan	17.24	94.20	Expensive
India	22.67	39.20	Undervalued
South Korea	12.83	95	Expensive
Indonesia	13.01	28.30	Undervalued

Definition: Trailing P/E Ratio

The trailing P/E ratio for Israel Stock Market shows how much investors are paying for one unit of the index's past earnings.
It is calculated as : P/E = Index level / Aggregated EPS
Aggregated EPS means the index's total earnings per share after weighting each stock in the index (usually by its market capitalization): Aggregated EPS = sum(weight_i * EPS_i). For trailing P/E, the EPS_i values are the actual earnings from the past 12 months.