Is Aeroflex Neu overvalued or undervalued?

As of 1 October 2025, Aeroflex Neu's valuation grade has moved from fair to expensive, indicating a shift in its market perception. The company is currently overvalued, with a PE ratio of 229.58, an EV to EBITDA ratio of 78.92, and a PEG ratio of 9.35, all of which are significantly higher than its peers. For comparison, Garware Hi Tech has a PE ratio of 22.03 and AGI Greenpac boasts a much lower PE of 16.07, highlighting the stark contrast in valuation metrics.
The high valuation ratios suggest that Aeroflex Neu is trading at a premium compared to its industry peers, which raises concerns about its sustainability and growth prospects. Recent stock performance has also been underwhelming, with a 1-year return of -8.45% compared to a -3.90% return for the Sensex, further reinforcing the notion that the stock may not justify its current price.