Is Omega Flex, Inc. overvalued or undervalued?

As of 16 June 2025, Omega Flex, Inc. has moved from a fair valuation to an expensive rating. The company appears overvalued based on its current financial metrics. The P/E ratio stands at 19, while the EV to EBITDA ratio is 12.55, and the Price to Book Value is 3.88, indicating a premium relative to its earnings and asset value.
In comparison to its peers, Omega Flex's P/E ratio of 19 is lower than TriMas Corp.'s 40.97, which is classified as very expensive, but higher than Daktronics, Inc.'s fair valuation at 23.31. Additionally, Omega Flex's ROCE of 59.17% and ROE of 20.70% are strong, yet the overall valuation suggests that the stock is not justified at its current price of 33.47, especially considering its poor performance against the S&P 500 over various time frames, including a year-to-date decline of 20.25%.