Is Ituran Location & Control Ltd. overvalued or undervalued?

As of 1 May 2025, the valuation grade for Ituran Location & Control Ltd. has moved from very attractive to fair. The company appears to be fairly valued at this time. Key ratios include a P/E ratio of 15, an EV to EBITDA of 8.43, and a PEG ratio of 1.26, which indicate a balanced valuation relative to its earnings and growth prospects.
In comparison to its peers, Ituran's P/E ratio of 15 is lower than Digi International, Inc. at 34.21, but higher than Harmonic, Inc. at 12.68, suggesting a competitive position within its industry. Additionally, the company's ROCE stands at an impressive 63.22%, reflecting strong operational efficiency. While Ituran has outperformed the S&P 500 over the past year with a return of 43.97% compared to 10.26%, its current valuation suggests that it is neither significantly undervalued nor overvalued in the current market context.