Is ESCO Technologies, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for ESCO Technologies, Inc. moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company appears to be overvalued given 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. These figures suggest that the stock is trading at a premium compared to its earnings and book value.
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 supports the notion of overvaluation. Additionally, the company's PEG ratio of 2.38 indicates that its growth prospects may not justify its current price. Despite its strong recent performance, with a 1-year return of 69.20% compared to the S&P 500's 14.08%, the high valuation metrics suggest that the stock may not be a sustainable investment at this level.