Is ESCO Technologies, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for ESCO Technologies, Inc. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company appears to be overvalued based on its high P/E ratio of 47, a Price to Book Value of 4.39, and an EV to EBITDA of 25.39, all of which are considerably above industry norms.
In comparison to peers, ESCO Technologies has a P/E ratio that is higher than Nova Ltd. at 34.30 and Cognex Corp. at 61.49, suggesting a premium valuation despite its lower PEG ratio of 2.38 compared to Nova's 0.67. Additionally, while the company has performed well with a year-to-date return of 62.44% compared to the S&P 500's 13.30%, its long-term performance over 10 years shows a decline relative to the index, with a return of 146.32% versus 227.77%. This combination of high valuation ratios and mixed performance relative to peers and the broader market suggests that ESCO Technologies, Inc. is overvalued.