Is Eltek Ltd. overvalued or undervalued?

As of 31 July 2025, Eltek Ltd. has moved from an attractive to a fair valuation grade. The company appears to be fairly valued based on its current metrics. Key ratios include a P/E ratio of 19, an EV to EBITDA ratio of 10.46, and a Price to Book Value of 1.63. In comparison, its peer Vishay Precision Group, Inc. has a P/E ratio of approximately -416.41, indicating significant risk, while Methode Electronics, Inc. has an EV to EBITDA of 13.05, which is higher than Eltek's.
Despite a strong 3-year return of 165.61%, Eltek's year-to-date performance shows a decline of 6.82%, contrasting with the S&P 500's gain of 12.22%, suggesting that while the company has performed well over a longer horizon, it has struggled recently compared to broader market trends.