Is Innovative Solutions & Support, Inc. overvalued or undervalued?

As of 14 May 2025, the valuation grade for Innovative Solutions & Support, Inc. has moved from fair to very attractive, indicating a significant improvement in its valuation outlook. The company is currently considered undervalued. Key ratios include a P/E ratio of 21, an EV to EBITDA of 14.31, and a PEG ratio of 0.32, which suggests strong growth potential relative to its price.
In comparison to peers, Innovative Solutions & Support, Inc. has a lower P/E ratio than Triumph Group, Inc. at 29.93 and a more favorable PEG ratio than National Presto Industries, Inc. at 0.52. This positions Innovative Solutions favorably within its industry, especially given its return on equity (ROE) of 20.19% and return on capital employed (ROCE) of 18.49%. Notably, the company's stock has outperformed the S&P 500 over the past year, with a return of 99.53% compared to the index's 10.26%, reinforcing its undervalued status.