Is ESCO Technologies, Inc. overvalued or undervalued?

As of 10 October 2025, the valuation grade for ESCO Technologies, Inc. has moved from expensive to very expensive, indicating a significant concern regarding its current valuation. The company is overvalued based on its high valuation ratios, including a P/E ratio of 47, a Price to Book Value of 4.39, and an EV to EBITDA of 25.39.
In comparison to its peers, ESCO Technologies has a notably higher P/E ratio than Nova Ltd. at 34.30 and Cognex Corp. at 61.49, which further emphasizes its expensive valuation. Additionally, the PEG ratio of 2.38 suggests that the stock may not be justified by its growth prospects. Despite the overvaluation, ESCO Technologies has outperformed the S&P 500 with a year-to-date return of 55.40% compared to the index's 11.41%. However, the long-term returns indicate a decline, with a 10-year return of 141.19% versus the S&P 500's 225.20%, highlighting potential concerns about sustainability.