Is Daktronics, Inc. overvalued or undervalued?

As of 17 October 2025, Daktronics, Inc. has moved from a fair to a very expensive valuation grade. The company appears overvalued based on its current metrics, including a P/E ratio of 23, an EV to EBITDA of 8.73, and a Price to Book Value of 2.62. In comparison, peers such as Advanced Drainage Systems, Inc. have a P/E of 27.44, while Brady Corp. shows a lower P/E of 21.28, indicating that Daktronics is trading at a premium relative to its industry counterparts.
Despite its strong recent performance, with a 1-year return of 42.60% compared to the S&P 500's 14.08%, the high valuation ratios suggest that the stock may not be justified at its current price. The significant disparity in P/E ratios with peers further reinforces the conclusion that Daktronics is overvalued.