Is Kimball Electronics, Inc. overvalued or undervalued?

As of 21 November 2025, the valuation grade for Kimball Electronics, Inc. moved from very expensive to expensive. The company is currently considered overvalued based on its financial metrics. Key ratios include a P/E ratio of 20, an EV to EBITDA of 6.83, and a Price to Book Value of 0.97. In comparison, a peer such as Kimball Electronics has a significantly higher P/E ratio of 34.66, indicating that the market is pricing it at a premium relative to Kimball.
Despite a strong year-to-date return of 44.42%, which outperformed the S&P 500's 12.26%, the company's long-term performance shows a decline, with 3-year and 5-year returns lagging behind the benchmark. This suggests that while recent performance has been positive, the overall valuation appears stretched given the current financial metrics.