Is Ituran Location & Control Ltd. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Ituran Location & Control Ltd. moved from attractive to fair. The company appears to be fairly valued based on its current metrics. Key ratios include a P/E ratio of 15, an EV to EBITDA of 8.43, and a PEG ratio of 1.26. In comparison, its peer Cambium Networks Corp. has a P/E of 13.479 and an EV to EBITDA of 7.5042, indicating that Ituran is trading at a premium relative to this peer.
Despite the recent downgrade in valuation grade, Ituran has shown strong performance with a year-to-date return of 22.65%, significantly outperforming the S&P 500's 16.30%. However, over a three-year period, Ituran's return of 62.71% lags behind the S&P 500's 76.66%, suggesting some volatility in its longer-term performance.