Is M-tron Industries, Inc. overvalued or undervalued?

As of 18 June 2025, M-tron Industries, Inc. has moved from an attractive to a very attractive valuation grade. The company is currently undervalued, with a P/E ratio of 17, which is lower than the industry average of 22.81, and a PEG ratio of 0.26, indicating strong growth potential relative to its price. Additionally, the company boasts a remarkable ROCE of 49.35% and an ROE of 23.47%, highlighting its efficient use of capital and strong profitability.
In comparison to its peers, Benchmark Electronics, Inc. has a P/E of 22.81 and a PEG of 0.00, while Kimball Electronics, Inc. is considered expensive with a P/E of 21.06. M-tron’s lower valuation metrics, combined with its strong financial performance, suggest that it is positioned favorably in the market. Despite recent stock performance lagging behind the S&P 500 over the past month, the company's long-term returns of 148.05% over three, five, and ten years indicate significant growth potential, reinforcing its undervalued status.