Is Hennessy Advisors, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Hennessy Advisors, Inc. moved from attractive to very attractive. The company appears undervalued, supported by a P/E ratio of 9, a price-to-book value of 0.90, and an EV to EBITDA ratio of 1.38. In comparison to peers, Medallion Financial Corp. has a P/E of 6.39, while Monroe Capital Corp. stands out with a much higher P/E of 85.47, indicating that Hennessy Advisors is positioned favorably within its industry.
Despite recent challenges, including a year-to-date return of -23.06% compared to the S&P 500's 16.30%, the long-term performance shows promise with a 5-year return of 21.56% against the S&P 500's 109.18%. This suggests that while the stock may be currently undervalued, it has the potential for recovery and growth in the future.