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 increase in perceived overvaluation. The company is overvalued, as reflected by its 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 higher than industry peers. For instance, Nova Ltd. has a P/E of 34.30, while Onto Innovation, Inc. shows a much lower P/E of 20.49, highlighting the disparity in valuation.
In terms of performance, ESCO Technologies has outperformed the S&P 500 across multiple time frames, with a year-to-date return of 62.44% compared to the S&P 500's 13.30% and a one-year return of 69.20% versus 14.08%. However, the stark contrast in valuation ratios suggests that the stock may not be sustainable at these levels, reinforcing the conclusion that it is overvalued.