Is EVI Industries, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for EVI Industries, Inc. has moved from fair to very expensive, indicating it is overvalued. The company exhibits a P/E ratio of 22, which is significantly lower than its peer average of approximately 33.93, and an EV/EBITDA ratio of 10.18 compared to the peer average of 15.15. Additionally, the PEG ratio stands at a notably low 0.23, suggesting that despite the high growth potential, the current valuation may not be justified.
In comparison to peers, BlueLinx Holdings, Inc. has a P/E of 25.45 and Hudson Technologies, Inc. has a P/E of 24.38, both indicating that EVI Industries is priced higher relative to its earnings potential. The stock has performed well recently, with a year-to-date return of 79.39% compared to the S&P 500's 12.22%, but this strong performance does not mitigate the concerns regarding its current valuation. Overall, EVI Industries, Inc. appears to be overvalued based on the provided metrics.