ELALF (El AL Israel Airlines) Intrinsic Value: DCF (FCF Based): $16.86 (As of Sep. 04, 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

ELALF El AL Israel Airlines Ltd ELALF
56 GF Score
Price $5.79
GF Value $2.73
Valuation Significantly Overvalued
! 6 Warning Signs
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What is El AL Israel Airlines Intrinsic Value: DCF (FCF Based)?

El AL Israel Airlines ELALF +0.35% 56 Intrinsic Value: DCF (FCF Based) is $16.86 as of Sep. 04, 2026. GuruFocus rates ELALF with a GF Score™ of 56/100 and a GF Value™ of $2.73 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 132 Transportation companies, El AL Israel Airlines ranks worse than 757575% on this metric.

As of today (2026-09-04), El AL Israel Airlines's intrinsic value calculated from the Discounted Cash Flow model is $16.86.

Note: Discounted Cash Flow model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's predictability rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

El AL Israel Airlines's Predictability Rank is 1-Star. Thus, this page is only used for demonstration purposes and the DCF related results in the screener and portfolio will appear as zero.

Margin of Safety (FCF Based) using Discounted Cash Flow model for El AL Israel Airlines is 65.66%.

The industry rank for El AL Israel Airlines's Intrinsic Value: DCF (FCF Based) or its related term are showing as below:

ELALF's Price-to-DCF (FCF Based) is not ranked *
in the Transportation industry.
Industry Median: 0.88
* Ranked among companies with meaningful Price-to-DCF (FCF Based) only.

El AL Israel Airlines  (OTCPK:ELALF) Intrinsic Value: DCF (FCF Based) Explanation

Unlike valuation methods such as Net Current Asset Value, Tangible Book per Share, Graham Number, Median PS Value etc, discounted Cash Flow model evaluates the companies based on their future earnings power instead of their assets.


Be Aware

What you need to know about the DCF model:

1. The DCF model evaluates a company based on its future earnings power
2. Growth is taken into account; therefore a faster growth company is worth more if everything else is the same.
3. Since we are projecting future growth, it is assumed that the company will grow at the same rate as it did during the past 10 years. Therefore this model works better for the companies that have relatively consistent performance.
4. The DCF model works poorly for inconsistent performers such as cyclicals.
5. What discount rate should you use? Your expected return from the investment is a good discount rate assumption.
6. A larger margin of safety should be required for companies with less predictable businesses.

You can screen for stocks that trade below their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) with the GuruFocus All-in-One Screener. Companies with a high Predictability Rank that trade at a discount to their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) can be found in the screen of Undervalued Predictable Companies.


El AL Israel Airlines Intrinsic Value: DCF (FCF Based) Related Terms


El AL Israel Airlines Intrinsic Value: DCF (FCF Based) Historical Data

* Premium members only.

The historical data trend for El AL Israel Airlines's Intrinsic Value: DCF (FCF Based) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

El AL Israel Airlines Intrinsic Value: DCF (FCF Based) Chart

El AL Israel Airlines Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Intrinsic Value: DCF (FCF Based)
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El AL Israel Airlines Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Intrinsic Value: DCF (FCF Based) Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 0.00 0.00 0.00

ELALF vs DAL, UAL, LUV: Intrinsic Value: DCF (FCF Based) Comparison

For the Airlines subindustry, El AL Israel Airlines's Price-to-DCF (FCF Based), along with its competitors' market caps and Price-to-DCF (FCF Based) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


El AL Israel Airlines Price-to-DCF (FCF Based) vs Transportation Industry

For the Transportation industry and Industrials sector, El AL Israel Airlines's Price-to-DCF (FCF Based) distribution charts can be found below:

* The bar in red indicates where El AL Israel Airlines's Price-to-DCF (FCF Based) falls into.


ELALF
56GF Score
El AL Israel Airlines Ltd ELALF
Intrinsic Value: DCF (FCF Based) is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

El AL Israel Airlines Intrinsic Value: DCF (FCF Based) Calculation

This is the intrinsic value calculated from the Discounted Cash Flow model with default parameters. In a discounted cash flow model, the future cash flow is estimated based on a cash flow growth rate and a discount rate. The cash flow of the future is discounted to its current value at the discount rate. All of the discounted future cash flow is added together to get the current intrinsic value of the company.

Usually a two-stage model is used when calculating a stock's intrinsic value using a discounted cash flow model. The first stage is called the growth stage; the second is called the terminal stage. In the growth stage the company grows at a faster rate. Because it cannot grow at that rate forever, a lower rate is used for the terminal stage.

GuruFocus DCF calculator is a two-stage model. The default values are defined as:

1. Discount Rate: d = 10%
A reasonable discount rate assumption should be at least the long term average return of the stock market, which can be estimated from risk free rate plus risk premium of stock market. GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate and rounded up to the nearest integer. It is updated daily. The current risk-free rate is 3.81%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default. Then we added a risk premium of 6% to get the estimated discount rate. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 6% - 20%.

2. Growth Rate in the growth stage: g1 = 20%
The Growth Rate in the growth stage is initially set as the default 10-Year FCF Growth Rate (Per Share). In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year FCF Growth Rate (Per Share). If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year FCF Growth Rate (Per Share).
However, it's important to note that there is a growth rate range. If the calculated growth rate exceeds 20%, it will be capped at 20%. Conversely, if the calculated growth rate falls below 5%, it will be adjusted to 5% to maintain a reasonable range.
=> El AL Israel Airlines's average Free Cash Flow Growth Rate in the past 3 years was 23.00%, which is no less than 20%. GuruFocus defaults => Growth Rate: 20%

3. Years of Growth Stage: y1 = 10

4. Terminal Growth Rate: g2 = 4%

5. Years of Terminal Growth: y2 = 10

6. Free Cash Flow per Share: fcf = $0.490.
However, GuruFocus DCF calculator is actually a Discounted Earnings calculator, the EPS without NRI is used as the default. The reason we are doing this is we found that historically stock prices are more correlated with earnings than free cash flow.

All of the default settings can be changed and the results are calculated automatically.

El AL Israel Airlines's Intrinsic Value: DCF (FCF Based) for today is calculated as

Intrinsic Value: DCF (FCF Based)=Free Cash Flow per Share*{[(1+g1)/(1+d)+(1+g1)^2/(1+d)^2+...+(1+g1)^10/(1+d)^10]
+(1+g1)^10/(1+d)^10*[(1+g2)/(1+d)+(1+g2)^2/(1+d)^2+...+(1+g2)^10/(1+d)^10]}

set x = (1+g1)/(1+d) = (1+0.2)/(1+0.1) = 1.0909090909091
and y = (1+g2)/(1+d) = (1+0.04)/(1+0.1) = 0.94545454545455

Intrinsic Value: DCF (FCF Based)=Free Cash Flow per Share*{[x+x^2+...+x^10]+x^10*[y+y^2+...+y^10]}
=Free Cash Flow per Share*[x*(1-x^10)/(1-x)+x^10*y*(1-y^10)/(1-y)]
=0.490*34.4098
=16.86

Margin of Safety (FCF Based)=(Intrinsic Value: DCF (FCF Based)-Current Price)/Intrinsic Value: DCF (FCF Based)
=(16.86-5.79)/16.86
=65.66 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

What does a Intrinsic Value: DCF (FCF Based) of $16.86 mean?
El AL Israel Airlines (ELALF) has a Intrinsic Value: DCF (FCF Based) of $16.86 as of Sep. 04, 2026. Intrinsic Value: DCF (FCF Based) is the stock value based on a two-stage discounted free cash flow model. View historical data on El AL Israel Airlines and its competitors. According to the industry distribution chart, El AL Israel Airlines ranks #999999 out of 132 companies in the Transportation industry.
Is El AL Israel Airlines' Intrinsic Value: DCF (FCF Based) too high?
El AL Israel Airlines' current Intrinsic Value: DCF (FCF Based) is $16.86. The Transportation industry median Intrinsic Value: DCF (FCF Based) is 0.88. El AL Israel Airlines' value of $16.86 is 1815.9% above this industry median. Based on the distribution chart, El AL Israel Airlines ranks #999999 out of 132 companies in the Transportation industry, which is in the bottom quartile relative to peers. Overall, El AL Israel Airlines has a GF Score™ of 56/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does El AL Israel Airlines' Intrinsic Value: DCF (FCF Based) compare to DAL and UAL?
According to the Transportation industry distribution chart, El AL Israel Airlines ranks #999999 out of 132 companies for Intrinsic Value: DCF (FCF Based). This places El AL Israel Airlines in the lower half of its industry. The industry median Intrinsic Value: DCF (FCF Based) is 0.88. El AL Israel Airlines' value of $16.86 is 1815.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Intrinsic Value: DCF (FCF Based) for a Transportation company?
The median Intrinsic Value: DCF (FCF Based) among Transportation companies is 0.88, based on 132 companies in the industry. Companies in the top quartile (top 25%) have a Intrinsic Value: DCF (FCF Based) significantly above this median, while those in the bottom quartile fall well below. However, Intrinsic Value: DCF (FCF Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. El AL Israel Airlines's current Intrinsic Value: DCF (FCF Based) of $16.86 is 1815.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Intrinsic Value: DCF (FCF Based) mean?
A high Intrinsic Value: DCF (FCF Based) can signal that a stock is expensive relative to its fundamentals. Intrinsic Value: DCF (FCF Based) is the stock value based on a two-stage discounted free cash flow model. View historical data on El AL Israel Airlines and its competitors. For the Transportation industry, the median Intrinsic Value: DCF (FCF Based) is 0.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. El AL Israel Airlines's current Intrinsic Value: DCF (FCF Based) is $16.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is El AL Israel Airlines stock overvalued right now?
Based on GuruFocus' analysis, El AL Israel Airlines (ELALF) is currently considered Significantly Overvalued. The stock's GF Value™ is $2.73, compared to a current price of $5.79 — trading 112.1% above its estimated fair value. The current Intrinsic Value: DCF (FCF Based) is $16.86 and 1815.9% above the Transportation industry median of 0.88. El AL Israel Airlines' overall GF Score™ is 56/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Intrinsic Value: DCF (FCF Based) calculated?
Intrinsic Value: DCF (FCF Based) is calculated from a company's financial statements. For El AL Israel Airlines (ELALF), the current Intrinsic Value: DCF (FCF Based) is $16.86 as of Sep. 04, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is El AL Israel Airlines (ELALF) Overvalued in 2026?

Based on GuruFocus' analysis, El AL Israel Airlines stock appears to be overvalued. The current stock price of $5.79 is trading 112.1% above its estimated GF Value™ of $2.73. GuruFocus considers El AL Israel Airlines to be Significantly Overvalued.

Key valuation signals for ELALF:

  • Intrinsic Value: DCF (FCF Based): $16.86
  • GF Value™: $2.73 vs. price of $5.79 (112.1% above fair value)
  • GF Score™: 56/100 with 6 warning signs
  • Industry Position: 1815.9% above the Transportation median (#999999 of 132)

No single metric tells the full story. See the ELALF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


El AL Israel Airlines Business Description

Other Exchanges ELAL:Israel
Address PO Box 41, Ben Gurion Airport, Lod, ISR, 7015001
El AL Israel Airlines Ltd is an international airline company which provides air transportation of passengers and cargo in Israel and overseas, by means of passenger aircraft and cargo aircraft. The company's passenger aircraft mainly operate scheduled flights as well as charter flights. The group is engaged in activities related to the air transport operations, such as the sale of duty-free products, food production, and supply mainly to the company's aircraft, providing security services, ongoing maintenance services and overall maintenance services to aircraft of other airlines at Ben Gurion Airport, and managing travel agencies abroad. The reporting segments of the company are air transport on passenger aircraft, and air transport on cargo plane.
56GF Score

Get the complete analysis for ELALF

Intrinsic Value: DCF (FCF Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$5.79
Price
$2.73
GF Value