Is Ceragon Networks Ltd. overvalued or undervalued?

As of 6 August 2025, the valuation grade for Ceragon Networks Ltd. has moved from very attractive to attractive. The company appears to be undervalued, with a P/E ratio of 8, an EV to EBITDA of 4.30, and a PEG ratio of 0.03, indicating strong potential for growth relative to its price. In comparison, peers such as Gilat Satellite Networks Ltd. have a significantly higher P/E ratio of 26.91 and Clearfield, Inc. shows a much higher EV to EBITDA of 146.64, highlighting Ceragon's relative undervaluation in the telecom equipment sector.
Despite recent challenges reflected in its year-to-date return of -45.61% compared to the S&P 500's 12.22%, Ceragon's long-term performance over three years shows a return of 22.12%, suggesting a potential recovery ahead. Overall, the metrics indicate that Ceragon Networks Ltd. is positioned favorably compared to its peers, supporting the conclusion of being undervalued.