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 stronger assessment of its value. The company appears undervalued based on its key metrics, including a P/E ratio of 9, a Price to Book Value of 0.90, and an EV to EBITDA 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 very high P/E of 85.47, highlighting Hennessy's relative attractiveness in the market.
Despite recent underperformance with a year-to-date return of -23.14% compared to the S&P 500's 16.30%, Hennessy Advisors has shown resilience over longer periods, with a 3-year return of 8.11% versus the S&P 500's 76.66%. This suggests that while the short-term outlook may be challenging, the company's strong fundamentals could lead to better performance in the future.