It’s been a sweet week for Bank of Jerusalem Ltd. (TLV:JBNK), which are down 10%. But that should not overshadow the satisfactory returns obtained by shareholders over the past three years. Namely, the stock price has done better than an index fund, climbing 85% over this period.

Although the stock has fallen 10% this week, it is worth focusing on the long term and seeing if historical stock returns have been driven by underlying fundamentals.

Check out our latest analysis for Bank of Jerusalem

To quote Buffett, “Ships will circumnavigate the globe, but the Flat Earth Society will prosper. There will continue to be wide gaps between price and value in the market…’ An imperfect but simple way to examine how a company’s market perception has changed is to compare the evolution of earnings by action (EPS) with action price movement.

Bank of Jerusalem was able to increase its EPS by 14% per year over three years, driving up the share price. This EPS growth is less than the average annual share price increase of 23%. It is therefore fair to assume that the market has a better opinion of the company than three years ago. That’s not necessarily surprising given three years of earnings growth.

The graph below illustrates the evolution of EPS over time (reveal the exact values ​​by clicking on the image).

It might be interesting to take a look at our free Bank of Jerusalem earnings, revenue and cash flow report.

What about the Total Shareholder Return (TSR)?

We’ve already covered the performance of Bank of Jerusalem’s share price, but we must also mention its total shareholder return (TSR). TSR is a calculation of return that takes into account the value of cash dividends (assuming any dividends received have been reinvested) and the calculated value of all discounted capital raisings and spinoffs. Bank of Jerusalem’s 100% TSR for 3 years exceeded its share price return as it paid dividends.

A different perspective

It’s nice to see that Bank of Jerusalem shareholders received a total shareholder return of 63% over the past year. This gain is better than the five-year annual TSR, which is 14%. Therefore, it seems that the sentiment around the company has been positive lately. Given that the stock price momentum remains strong, it might be worth taking a closer look at the stock lest you miss an opportunity. Is Bank of Jerusalem cheap compared to other companies? These 3 assessment metrics might help you decide.

If you like buying stocks alongside management then you might love this free list of companies. (Hint: insiders bought them).

Please note that the market returns quoted in this article reflect the average market-weighted returns of stocks currently trading on IL exchanges.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.