Is EVI Industries, Inc. overvalued or undervalued?

As of 31 January 2025, the valuation grade for EVI Industries, Inc. has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a P/E ratio of 22, an EV to EBITDA of 10.18, and a PEG ratio of 0.23, which suggests that while the growth potential is high, the current price does not reflect its intrinsic value.
In comparison to its peers, EVI Industries, Inc. has a higher P/E ratio than Distribution Solutions Group, Inc. at 42.30 and DXP Enterprises, Inc. at 16.05, which are both in a more favorable valuation position. Additionally, EVI's EV to EBITDA ratio is on par with its peers, but the overall valuation metrics indicate that it is trading at a premium. Notably, while EVI has shown a strong return of 91.06% over the past three years, its recent performance against the S&P 500 has been mixed, reinforcing the notion of overvaluation in the current market context.