Airport City (TASE:ARPT) released its second quarter and half year 2026 results, reporting higher quarterly sales and net income compared with a year earlier. However, revenue and net income for the six-month period were slightly lower.
Airport City’s recent earnings release comes after a weak stretch for the stock, with the share price down 8.85% over the past 30 days and 19.80% year to date. The 1 year total shareholder return declined 16%, signalling pressure on longer term holders despite a modest 0.79% gain in the latest session.
Compare how Airport City stacks up against other real estate stocks under pressure this year by scanning our hand picked 292 resilient stocks with low risk scores that pair resilience with more muted share price moves.
Given Airport City’s recent share price slide alongside a single stronger quarter, the real question is whether to step in after this pullback or wait for an even cheaper entry. To weigh that up, the valuation now needs a closer look.
Preferred P/E of 7.8x for Airport City: Is it justified?
Airport City is currently valued on a P/E of 7.8x, which looks modest when set against its recent share price weakness and the discount to an internal fair value estimate of ₪64.63 from the SWS DCF model, compared with the last close of ₪51.09.
The P/E ratio compares the share price with earnings per share. For a real estate company such as Airport City, it gives a snapshot of how much investors are paying for each unit of profit, which can be useful when earnings are positive and relatively stable.
Airport City’s P/E of 7.8x sits below both the peer average of 12.9x and the IL Real Estate industry average of 13.1x. That gap suggests the market is currently assigning a lower price tag to each shekel of Airport City’s earnings than to peers, even though earnings grew 27.2% over the past year and net profit margins are currently 64.5%. For investors comparing real estate stocks, this combination of a lower P/E and recent earnings improvement may point to a more conservative market view on the durability of those profits.
Relative to the wider IL Real Estate industry, the discount is clear. A P/E of 7.8x compared with about 13x for the sector means the stock is trading on a materially lower earnings multiple than many direct competitors, which could reflect concerns about factors such as board independence, interest coverage and higher risk funding, or it could indicate a potential valuation gap if earnings remain resilient.
See what the numbers say about this price — find out in our valuation breakdown..
Result: Price-to-earnings of 7.8x (UNDERVALUED)
However, investors in Airport City still face risks from its multi country property exposure and the recent share price decline over one year and longer periods.
Find out about the key risks to this Airport City narrative.
Another view on Airport City’s value
The SWS DCF model also points to Airport City trading below an internal fair value estimate. The current price of ₪51.09 compares with a modelled value of ₪64.63, which implies a discount. That lines up with the low P/E. The key question is how comfortable you are with the assumptions behind those cash flows.
For a closer look at how this valuation is built, including the detailed cash flow assumptions, check the SWS DCF workup for Airport City using the following resource, Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Airport City 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 273 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
If the mix of pressure and potential around Airport City feels unclear, you may wish to take a closer look now and shape your own view with 2 key rewards and 3 important warning signs.
Looking for more investment ideas beyond Airport City?
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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.
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