Is Napco Security Technologies, Inc. overvalued or undervalued?

As of 1 May 2025, the valuation grade for Napco Security Technologies, Inc. has moved from attractive to fair. The company is currently fairly valued based on its financial metrics. The P/E ratio stands at 25, while the EV to EBITDA ratio is 20.30, and the ROE is an impressive 27.98%.
In comparison to peers, Napco's P/E ratio of 24.43 is higher than Huron Consulting Group, Inc. at 22.18, but lower than the risky First Advantage Corp. with a P/E of -103.05. Notably, the company has a high dividend yield of 124.02%, which is significantly above industry norms. Recent stock performance shows that Napco has underperformed against the S&P 500, particularly over the past year, where it declined by 45.31% compared to the index's gain of 10.26%.