Is Electro-Sensors, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Electro-Sensors, Inc. has moved from very attractive to expensive, indicating a shift towards overvaluation. The company appears to be overvalued based on its current metrics, with a P/E ratio of 15, an EV to EBITDA of 4.70, and a PEG ratio of 1.21. In comparison, peer companies such as Profire Energy, Inc. have a more favorable P/E ratio of 14.05, while Babcock & Wilcox Enterprises, Inc. shows a negative P/E of -2.60, highlighting a significant disparity in valuation among peers.
Despite a strong one-year return of 21.56% compared to the S&P 500's 14.08%, the company's year-to-date performance of -9.44% against the S&P's 13.30% suggests that it may be struggling in the current market environment. Overall, the combination of valuation metrics and peer comparisons supports the conclusion that Electro-Sensors, Inc. is overvalued at its current price.