Is Frequency Electronics, Inc. overvalued or undervalued?

As of 16 June 2025, Frequency Electronics, Inc. has moved from a very attractive to an attractive valuation grade. The company is currently considered undervalued, with a P/E ratio of 8, a Price to Book Value of 3.57, and an impressive ROE of 44.59%. In comparison to its peers, Frequency Electronics has a lower P/E ratio than AudioCodes Ltd. at 15.92 and a significantly lower EV to EBITDA ratio than Gilat Satellite Networks Ltd. at 10.76, indicating a more favorable valuation position.
The company's PEG ratio stands at an exceptionally low 0.01, suggesting strong growth potential relative to its price. Additionally, Frequency Electronics has outperformed the S&P 500 with a remarkable 154.55% return over the past year, further reinforcing its undervaluation narrative amidst a competitive landscape.