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, indicating a strong improvement in its valuation outlook. The company is currently 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 its peers, Medallion Financial Corp. has a P/E of 6.39, while Monroe Capital Corp. shows a significantly higher P/E of 85.47, highlighting Hennessy Advisors' relative attractiveness in the market.
Despite the lack of return data for a direct comparison with the S&P 500, the strong valuation metrics suggest that Hennessy Advisors, Inc. is positioned favorably within its industry, particularly given its high ROCE of 46.34% and low PEG ratio of 0.10. This combination of factors reinforces the conclusion that the stock is undervalued compared to its peers.