Is Aeroflex Neu overvalued or undervalued?

As of 29 October 2025, Aeroflex Neu's valuation grade has moved from fair to expensive, indicating a significant shift in its market perception. The company is currently overvalued, with a PE ratio of 305.19, an EV to EBITDA of 74.90, and a PEG ratio of 12.43, all of which are substantially higher than its peers. For instance, Garware Hi Tech, also classified as expensive, has a PE ratio of 25.49, while AGI Greenpac, rated very attractive, boasts a much lower PE of 15.48.
In comparison to its industry peers, Aeroflex Neu's financial metrics suggest it is not just overvalued but significantly so, with its ROE at a mere 0.23% and ROCE at 1.28%, which are considerably lower than the industry averages. This stark contrast highlights the company's premium valuation despite its underwhelming returns. Additionally, while Aeroflex Neu has seen a recent stock return of 10.8% over the past week, this is not enough to offset its poor performance over the longer term, where it has declined by 21.1% over the past year compared to a 5.76% gain in the Sensex.