Is Eltek Ltd. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Eltek Ltd. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued at this time. Key valuation ratios include a P/E ratio of 19, an EV to EBITDA of 10.46, and a Price to Book Value of 1.63. In comparison, Vishay Precision Group, Inc. has a P/E ratio of -416.41, while Methode Electronics, Inc. has an EV to EBITDA of 13.05, highlighting Eltek's relatively stable valuation metrics within a challenging peer landscape.
In terms of stock performance, Eltek has shown a 3-year return of 201.26%, significantly outperforming the S&P 500's 81.19% over the same period. However, its recent returns indicate a lag, with a 1-year return of 4.27% compared to the S&P 500's 14.08%. This suggests that while Eltek has strong historical performance, its current valuation reflects a more cautious outlook.