Gilat Satellite Networks (GILT) is back in focus after announcing that subsidiary RaySat will present its Viper Ka electronically steered antenna for tactical unmanned platforms at Eurosatory 2026, expanding Gilat Defense’s mission-critical SATCOM offering.

The latest product news comes after a mixed run in the stock, with the share price up 11.86% year to date despite being down 8.81% over 90 days. Over the longer term, the 1 year total shareholder return of 146.71% and 3 year total shareholder return of 152.10% point to strong gains.

If this kind of defense and communications story interests you, it could be worth looking at other companies in related areas through our 33 robotics and automation stocks

So with Gilat trading at US$15.00, sitting at a reported 28% discount to the average analyst price target and carrying a value score of 1, is there still mispricing here, or is the market already factoring in future growth?

Most Popular Narrative: 21.9% Undervalued

Gilat's most followed valuation story puts fair value at $19.20 a share, comfortably above the last close of $15.00, and hinges on very specific growth and margin assumptions.

Growing global investment in secure, mission-critical satellite connectivity, driven by increased geopolitical tensions, public infrastructure modernization, and digital inclusion initiatives, continues to expand Gilat's addressable market, as evidenced by record new defense contracts and major government programs in regions such as Latin America and Europe. This is likely to support outsized revenue growth and enhance long-term earnings visibility.

Read the complete narrative. Read the complete narrative.

Want to see what kind of revenue curve and profit margins need to line up with that story? The narrative leans on steady top line expansion, slightly tighter margins, and a richer future earnings multiple. If you are curious how those ingredients combine to reach $19.20, the full narrative lays out the math in detail.

Result: Fair Value of $19.20 (UNDERVALUED)

However, investors still need to weigh risks such as a slower than expected Stellar Blu ramp up and pressure on gross margins from lower margin contracts and customer bargaining power.

Another View: P/E Ratios Send a Different Signal

The consensus narrative leans on a fair value of $19.20, but the current P/E of 35.5x tells a more cautious story. It sits above the US Communications industry at 33.7x and above a fair ratio of 34.7x, while still below peers at 71.9x, which suggests less room for error if growth slips. How comfortable are you with paying a higher multiple on earnings for this kind of profile?

To see how this pricing compares with detailed earnings assumptions, have a look at the valuation breakdown, including how the ratio might move toward the fair ratio over time, in our See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

With mixed signals across valuation, risks, and recent returns, the key question is how it all stacks up for you personally. Take a closer look at both sides of the story and shape your own view by weighing the 2 key rewards and 2 important warning signs.

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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.