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

As of 7 July 2025, the valuation grade for Innovative Solutions & Support, Inc. moved from expensive to very attractive, indicating a significant improvement in its valuation outlook. The company is currently considered undervalued, supported by 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 has a more favorable P/E ratio than Kaman Corp. at 120.26 and Park Aerospace Corp. at 55.45, both of which are classified as very expensive. Additionally, its PEG ratio of 0.32 is notably lower than Kaman Corp.'s 0.1973, reinforcing its attractive valuation. Despite a recent decline in the one-month return of -19.07% compared to the S&P 500's 2.33%, the year-to-date return of 34.66% significantly outperforms the S&P 500's 12.22%, highlighting the stock's potential for recovery and growth.