Is Gilat Satellite Networks Ltd. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Gilat Satellite Networks Ltd. has moved from attractive to expensive, indicating a shift towards overvaluation. The company is currently considered overvalued, with a P/E ratio of 25, an EV to EBITDA of 10.25, and a Price to Book Value of 1.14. In comparison, peers such as Infinera Corp. show a negative P/E of -12.83, while Clearfield, Inc. has a significantly higher P/E ratio of 464.44, highlighting the disparity in valuation metrics within the sector.
Despite the overvaluation, Gilat has demonstrated strong recent performance, with a year-to-date return of 122.93% compared to the S&P 500's 13.30%, and a one-year return of 173.11% against the S&P 500's 14.08%. This performance underscores the market's positive sentiment towards the stock, even as its valuation metrics suggest it may be priced too high relative to its fundamentals.