Is AstroNova, Inc. overvalued or undervalued?

As of 14 April 2025, the valuation grade for AstroNova, Inc. has moved from fair to risky, indicating a deterioration in its financial outlook. The company is currently considered overvalued given its weak financial metrics, including a Price to Book Value of 1.32, an EV to EBITDA of 15.12, and a ROCE of only 3.63%. In comparison, peers such as Immersion Corp. show a more attractive EV to EBITDA of 2.4151, while Xerox Holdings Corp. has a significantly lower EV to EBITDA of 8.8040, highlighting AstroNova's relative weakness.
The company's recent stock performance further underscores its challenges, with a year-to-date return of -15.15% compared to the S&P 500's gain of 12.22%. Over the past year, AstroNova has declined by 24.74%, while the S&P 500 has risen by 17.14%, reinforcing the notion that the stock is not only overvalued but also underperforming against broader market benchmarks.