Is Kimball Electronics, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Kimball Electronics, Inc. has moved from attractive to very expensive, indicating a shift towards overvaluation. The company appears overvalued based on its P/E ratio of 20, which is significantly higher than the peer average of approximately 34.66, and its EV to EBITDA ratio of 6.83, which is lower than the peer average of 9.82. Additionally, the Price to Book Value stands at 0.97, suggesting that the stock is trading close to its book value, yet the overall valuation metrics indicate a premium.
In comparison with its peers, Kimball Electronics is positioned unfavorably, as evidenced by its lower ROE of 4.76% compared to the industry standards. The stock has demonstrated strong performance year-to-date with a return of 51.15% compared to the S&P 500's 13.30%, but over longer periods, it has underperformed against the index, particularly over three and ten years. This mixed performance reinforces the notion that while recent returns may seem appealing, the current valuation metrics suggest that the stock is indeed overvalued.