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 perceived value. The company is currently overvalued, with a PE ratio of 229.58, an EV to EBITDA of 78.92, and a PEG ratio of 9.35, all significantly higher than industry norms. In comparison, peers such as Garware Hi Tech and AGI Greenpac show much lower PE ratios of 22.03 and 16.07, respectively, highlighting the disparity in valuation.
The high valuation metrics suggest that Aeroflex Neu is not just expensive, but may be priced for perfection, especially given its low ROCE of 1.28% and ROE of 0.23%. Recent stock performance has also been underwhelming, with a 1-year return of -8.45% compared to the Sensex's -3.90%, further reinforcing the notion that the stock may not justify its current price level.