Is Kimball Electronics, Inc. overvalued or undervalued?

As of 28 November 2025, the valuation grade for Kimball Electronics, Inc. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is overvalued based on its current metrics, notably with a P/E ratio of 20, which is substantially higher than the peer average of approximately 34.66. Additionally, the EV to EBITDA ratio stands at 6.83, while the industry peers exhibit a lower average, further supporting the overvaluation stance.
In comparison to its peers, Kimball Electronics shows a Price to Book Value of 0.97 and an EV to Sales ratio of 0.43, which are relatively favorable, yet overshadowed by the high P/E ratio. The company’s return performance has been mixed; while it has outperformed the S&P 500 with a year-to-date return of 54.30% compared to the index's 16.45%, its longer-term returns, particularly over three and five years, lag behind the S&P 500, indicating potential concerns about sustained growth.