Is Electromed, Inc. overvalued or undervalued?

As of 19 February 2025, Electromed, Inc. has moved from a fair to an attractive valuation grade, indicating a shift in its perceived value. The company is currently considered undervalued. Key ratios include a P/E ratio of 25, an EV to EBITDA of 16.14, and a PEG ratio of 0.38, which suggests strong growth potential relative to its price.
In comparison to its peers, Electromed's P/E ratio of 23.50 is significantly better than that of Clearpoint Neuro, Inc., which has a negative P/E, and Sight Sciences, Inc., also showing negative performance. Notably, Electromed's ROCE stands at an impressive 31.20%, highlighting its efficient use of capital. While the company's recent stock performance has been volatile, it has outperformed the S&P 500 over the past year with a return of 48.39% compared to the index's 10.26%.