Is Eltek Ltd. overvalued or undervalued?

As of 20 May 2025, Eltek Ltd. has moved from an attractive to a fair valuation grade. The company appears to be fairly valued at this time. Key ratios include a P/E ratio of 19, an EV to EBITDA of 10.46, and a ROCE of 12.70%. In comparison, peers such as Bel Fuse, Inc. have a P/E ratio of 27.60 and an EV to EBITDA of 18.36, while Knowles Corp. shows a much higher P/E of 116.75, indicating that Eltek is more reasonably priced relative to some of its competitors.
Despite a recent decline in stock performance, with a year-to-date return of -8.41% compared to the S&P 500's 2.44%, the overall valuation metrics suggest that Eltek Ltd. is not overvalued, particularly when considering its competitive positioning within the industry.