Is Ituran Location & Control Ltd. overvalued or undervalued?

As of 28 August 2025, the valuation grade for Ituran Location & Control Ltd. moved from fair to attractive, indicating a positive shift in its valuation outlook. The company appears to be undervalued, supported by a P/E ratio of 15, which is favorable compared to its peer average of 13.48, and an EV to EBITDA ratio of 8.43, also lower than the peer average of 7.50. Additionally, the company boasts a strong ROCE of 63.22% and a ROE of 30.45%, highlighting its efficient use of capital and strong profitability.
In comparison to peers, Ituran's PEG ratio stands at 1.26, suggesting it is reasonably priced relative to its growth prospects, while its dividend yield of 0.10% remains modest. Although specific return data is not available, the overall valuation metrics indicate that Ituran is positioned well within its industry, reinforcing the attractiveness of its current stock price.