Ituran Location and Control (ITRN) has drawn fresh attention after reporting second quarter 2026 results that showed higher revenue and net income compared with a year earlier, alongside a new cash dividend and completed share buyback.
See our latest analysis for Ituran Location and Control.
At a share price of $50.89, Ituran Location and Control has seen short term share price pressure with a 30 day share price return down 7.08%, while its 5 year total shareholder return of 141.39% points to much stronger long term momentum.
If this earnings driven move has you thinking more broadly about opportunities, you might want to scan the market using the 20 top founder-led companies
Recent earnings growth, a fresh dividend and a completed buyback put Ituran Location and Control in a stronger spotlight. After the latest pullback, investors may be asking whether the current valuation still offers enough potential upside to justify the risk.
Most Popular Narrative: 30.8% Undervalued
At $50.89, the most followed narrative on Ituran Location and Control points to a higher fair value of $73.50, built on detailed long term earnings and margin assumptions.
The analysts have a consensus price target of $73.5 for Ituran Location and Control based on their expectations of its future earnings growth, profit margins and other risk factors. In order for you to agree with the analysts, you'd need to believe that by 2029, revenues will be $486.9 million, earnings will come to $95.7 million, and it would be trading on a PE ratio of 20.3x, assuming you use a discount rate of 10.6%.
Want to see what sits behind that higher fair value for Ituran Location and Control? The narrative leans on compounding revenue, rising profitability and a future earnings multiple that assumes steady execution rather than stretch targets.
Result: Fair Value of $73.50 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, investors still need to weigh risks for Ituran Location and Control, including currency swings that affect reported results and pressure on margins from lower margin OEM contracts.
Find out about the key risks to this Ituran Location and Control narrative.
Another View on Ituran Location and Control Using Cash Flows
The analyst narrative points to Ituran Location and Control trading about 30.8% below a fair value of $73.50. Our DCF model presents a different perspective. Using that approach, the current share price of $50.89 is above an estimated future cash flow value of $39.06, which screens as overvalued. This raises a question about which lens is more convincing for a business built on recurring telematics revenue.
For a closer look at how this cash flow view is built, take a moment to review the Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Ituran Location and Control for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 48 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
With sentiment in this article pulling in both directions, now is a good time to review the data on Ituran Location and Control for yourself, weigh up the potential risks against the possible rewards, and see how that lines up with the 4 key rewards and 1 important warning sign.
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- Hunt for potential bargains that pair quality with pricing support using the 48 high quality undervalued stocks.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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