Is Coda Octopus Group, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Coda Octopus Group, Inc. has moved from attractive to fair. The company appears to be fairly valued based on its current metrics. The P/E ratio stands at 19, which is significantly lower than the peer average of 26.29 for companies like TAT Technologies Ltd., while its EV to EBITDA ratio of 11.08 is also competitive compared to the industry average.
In comparison to its peers, Innovative Solutions & Support, Inc. has a more attractive P/E ratio of 19.21 and a lower EV to EBITDA of 12.56, indicating that Coda Octopus is positioned well within its industry. The company's recent stock performance has been strong, with a year-to-date return of 21.71%, outperforming the S&P 500's return of 13.30%. However, over longer periods, such as the 3-year and 5-year returns, Coda Octopus has lagged behind the S&P 500, suggesting potential challenges ahead.