Is Mercury Systems, Inc. overvalued or undervalued?

Jun 25 2025 08:37 AM IST
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As of January 31, 2023, Mercury Systems, Inc. is considered overvalued with a valuation grade of risky, reflected in its key ratios and negative returns, despite a year-to-date stock performance of 23.40%.
As of 31 January 2023, the valuation grade for Mercury Systems, Inc. moved from very expensive to risky. The company is currently considered overvalued. Key ratios include a Price to Book Value of 2.19, an EV to EBITDA of 73.95, and a ROCE of -2.04%. In comparison, peer AeroVironment, Inc. has a significantly higher P/E ratio of 259.58, while Joby Aviation, Inc. is not qualifying due to negative earnings.

Despite the recent stock performance showing a 23.40% year-to-date return compared to the S&P 500's 2.44%, the underlying financial metrics suggest that Mercury Systems, Inc. is not positioned favorably in its industry. The negative returns over longer periods further reinforce the notion that the stock is overvalued at its current price of 51.83.
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