Is Electro-Sensors, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Electro-Sensors, Inc. has moved from very attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued based on its current metrics. Key ratios include a P/E ratio of 15, an EV to EBITDA of 4.70, and a PEG ratio of 1.21, which suggest that the stock is reasonably priced relative to its earnings growth potential.
In comparison to peers, Electro-Sensors has a P/E ratio of 16.69, which is higher than Profire Energy, Inc. at 14.05, but lower than the risky Babcock & Wilcox Enterprises, Inc. at -2.60. The company's recent stock performance shows a 1-year return of 18.99%, slightly trailing the S&P 500's return of 19.89%, while over the last 5 years, it has returned 32.02%, significantly lower than the S&P 500's 109.18%. This performance reinforces the notion that the stock is fairly valued in the current market environment.