Buffett Brain · Research note
Score updated 23 Oct 2026 · analysis from 30 Sept 2026
ESLT· Industrials
Elbit Systems
Elbit Systems' valuation multiples are too high, with a P/E of 64.4 and an EV/EBIT of 57.1, pricing in growth that may not be sustainable.
Buffett fit
Partial fit
Owner
15
Durability
85
Management
84
Price
0
Score updated 23 Oct 2026 · analysis from 30 Sept 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Industrials stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning Elbit Systems would mean navigating a complex business with a 10.74% revenue CAGR over five years.
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Elbit Systems has been profitable for the past five years, with an EPS CAGR of 16.03%.
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Elbit Systems has maintained a stable share count with a CAGR of 0.84% over five years, but hasn't engaged in significant .
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The current valuation is stretched, with an earnings yield of 1.55% and an yield of 1.54%, far below the 8-10% threshold for a no-brainer entry.
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- The full reasoning behind all four pillars
- The 5-year price target and the return it implies
- What would change the call
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1Revenue CAGR of 10.74% over five years indicates solid growth.
- 2EPS CAGR of 16.03% suggests effective earnings expansion.
- 3Low debt/equity ratio of 0.21 implies conservative .
- 4Interest coverage of 5.5 shows ability to meet debt obligations.
Concerns
5- 1 of 64.4 suggests high growth expectations that may not be met.
- 2EV/ of 57.1 is significantly above comfort levels.
- 3 of 24.7% is below sector top-quintile, indicating weak competitive positioning.
- 4 of 8.83% is below sector top-quintile.
Price history
$743+368.0%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Elbit Systems Ltd. develops and supplies defense and homeland security systems across air, land, and sea, primarily to government clients. It generates $7.94B in revenue, with a net income of $534.34M, indicating a net margin of 7.15%. The business benefits from government contracts, which provide some stability but also expose it to geopolitical risks. Unit economics are pressured by a of 24.7%, below industry leaders.
How this analysis has moved
The call has held across 4 reviews.
Oct 4, 2026 → Oct 23, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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