Is Electromed, Inc. overvalued or undervalued?

As of 26 August 2025, the valuation grade for Electromed, Inc. has moved from attractive to fair. The company appears to be fairly valued based on its current metrics. 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 that the stock may not be undervalued despite its previous attractive rating.
When compared to peers, Electromed's P/E ratio of 27.12 is higher than that of Clearpoint Neuro, Inc., which has a P/E of -13.98, indicating that Electromed is priced at a premium relative to some of its riskier counterparts. Additionally, the EV to EBITDA ratio for Electromed is more favorable than the average of its peers, which are generally in the risky category. Although specific return data is not available, Electromed's performance should be analyzed in the context of broader market trends, such as the S&P 500, to fully assess its valuation narrative.