Is Frequency Electronics, Inc. overvalued or undervalued?

As of 12 September 2025, the valuation grade for Frequency Electronics, Inc. has moved from attractive to very attractive, indicating a strong positive shift in its perceived value. The company appears to be undervalued, especially when considering its P/E ratio of 8, which is significantly lower than the peer average of approximately 13.34, and a PEG ratio of just 0.01, suggesting that the stock is priced very favorably relative to its growth potential. Additionally, the EV to EBITDA ratio stands at 16.50, which is competitive compared to peers like Gilat Satellite Networks Ltd. with an EV to EBITDA of 16.43.
In terms of peer comparison, Frequency Electronics, Inc. is favorably positioned against PowerFleet, Inc., which has a P/E ratio of -29.42, and Aviat Networks, Inc., with a P/E of -164.67, both indicating financial struggles. The company has demonstrated impressive returns, with a 1-year return of 157.26% compared to the S&P 500's 17.14%, reinforcing the narrative of its strong performance and potential for further appreciation.