Is Immersion Corp. overvalued or undervalued?

As of 12 March 2025, the valuation grade for Immersion Corp. has moved from very attractive to attractive, indicating a shift in perception of its value. The company is currently considered undervalued, with a P/E ratio of 3, a Price to Book Value of 1.07, and an EV to EBITDA ratio of 2.58. These figures suggest that the stock is trading at a significant discount compared to its earnings potential.
In comparison to peers, Immersion Corp. has a much lower P/E ratio than Stratasys Ltd., which is at -7.97, and ADTRAN Holdings, Inc. at -8.62, both of which are categorized as risky investments. The PEG ratio for Immersion Corp. stands at an impressive 0.02, further supporting its undervalued status in the market. While the stock has underperformed against the S&P 500 over the past year, its strong ROCE of 34.10% and ROE of 34.80% highlight its operational efficiency and profitability, reinforcing the argument for its undervaluation.