Is Kewaunee Scientific Corp. overvalued or undervalued?

As of 8 May 2025, Kewaunee Scientific Corp. has moved from a very attractive to an attractive valuation grade. The company is currently assessed as undervalued, given its P/E ratio of 6, which is significantly lower than the industry average, and an EV to EBITDA ratio of 7.61. Additionally, the company boasts a strong ROE of 29.30% and a ROCE of 16.14%, indicating efficient use of equity and capital.
In comparison to peers, Kewaunee Scientific Corp. has a P/E ratio of 5.90, while Pro-Dex, Inc., considered very attractive, has a P/E of 15.67, highlighting the relative undervaluation of Kewaunee. The PEG ratio of 0.06 further supports this view, suggesting that the stock may be undervalued relative to its growth potential. Despite recent underperformance against the S&P 500, particularly year-to-date with a return of -40.34%, the long-term performance over three and five years shows a substantial gain of 168.44% and 291.83%, respectively, reinforcing the potential for recovery and value realization.