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 currently overvalued, with a P/E ratio of 20, compared to a peer average of approximately 34.66, and an EV to EBITDA ratio of 6.83, which is lower than its peer's 9.82. Additionally, the Price to Book Value stands at 0.97, suggesting that the stock is trading close to its book value but still reflects an expensive valuation relative to its earnings potential.
In comparison to its peers, Kimball Electronics shows a lower return on equity (ROE) of 4.76% and a return on capital employed (ROCE) of 8.79%, which are both less favorable than the industry standards. While the company has outperformed the S&P 500 with a year-to-date return of 54.30% versus 16.45%, its longer-term performance over three and five years lags behind the index, indicating potential concerns about sustainability in its high valuation.