Is Kimball Electronics, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Kimball Electronics, Inc. has moved from fair to very expensive, indicating a significant shift in its perceived value. The company appears overvalued based on its current metrics, particularly with a P/E ratio of 20, which is substantially lower than its peer Aehr Test Systems, which has a P/E of 34.66. Additionally, the EV to EBITDA ratio stands at 6.83, further supporting the notion of overvaluation when compared to the industry context.
In terms of performance, Kimball's return over the past year is 58.62%, significantly outpacing the S&P 500's return of 19.89%. However, over three years, Kimball's return of 38.61% lags behind the S&P 500's 76.66%, suggesting that while the company has performed well recently, its long-term prospects may not be as strong. Overall, with a Price to Book Value of 0.97 and an EV to Sales ratio of 0.43, the valuation metrics reinforce the conclusion that Kimball Electronics is currently overvalued.