Is TAT Technologies Ltd. overvalued or undervalued?

As of 19 August 2025, TAT Technologies Ltd. has moved from a fair to attractive valuation grade, indicating a positive shift in its market position. The company is currently considered undervalued, supported by a P/E ratio of 27, a PEG ratio of 0.27, and an EV to EBITDA ratio of 18.17. In comparison to peers, TAT Technologies Ltd. has a more favorable valuation with Park Aerospace Corp. at a P/E of 55.45 and Innovative Solutions & Support, Inc. at a P/E of 19.21, highlighting its relative attractiveness in the aerospace and defense sector.
The company's strong performance is further evidenced by its impressive returns, with a 1-year stock return of 142.06% compared to the S&P 500's 17.14%, and a staggering 5-year return of 931.64% against the S&P 500's 96.61%. This robust performance reinforces the notion that TAT Technologies Ltd. is undervalued in the current market landscape.