Israeli Stock Valuations Soar as Investors Bet on Post-War Gains

Israeli stocks are breaking out of a valuation range they were stuck in for almost two decades, with investors paying record multiples to own them on bets the country is poised for a post-war technology-led economic boom.

The Tel Aviv Stock Exchange 35 Index has rallied 22% this year, trading around all-time highs and posting one of the world’s best performances even during the Iran war. That has pushed valuations to 17.9 times forward earnings, up from 11.3 just eight months ago. Israeli equities are now the most expensive in data starting in 2008, both in absolute terms and relative to global stocks.