Is Kimball Electronics, Inc. overvalued or undervalued?

As of 7 November 2025, the valuation grade for Kimball Electronics, Inc. has moved from very expensive to expensive. The company appears to be overvalued based on its current metrics. Key ratios include a P/E ratio of 20, a price to book value of 0.97, and an EV to EBITDA ratio of 6.83. In comparison, a peer such as Kimball Electronics itself has a significantly higher P/E ratio of approximately 34.66, indicating that the market may be pricing it too high relative to its earnings potential.
The company's ROCE stands at 8.79% and ROE at 4.76%, which are relatively low and suggest inefficiencies in generating returns for shareholders. While specific return data is not available, the absence of a strong return performance against the S&P 500 reinforces the notion that Kimball Electronics may not be a compelling investment at its current valuation.