Is OSI Systems, Inc. overvalued or undervalued?

As of 21 August 2025, the valuation grade for OSI Systems, Inc. has moved from fair to very attractive, indicating a favorable outlook for the stock. The company appears to be undervalued, particularly when considering its P/E ratio of 25, which is lower than the peer average, and an EV to EBITDA ratio of 16.35, also suggesting a competitive valuation compared to its industry. Additionally, the PEG ratio stands at 1.60, indicating that the stock is reasonably priced relative to its growth prospects.
In comparison to its peers, OSI Systems, Inc. has a P/E ratio of 24.50, which is significantly lower than AeroVironment, Inc. at 180.12 and Crane Co. at 35.01. This positions OSI favorably within the Aerospace & Defense sector. The company's recent performance has outpaced the S&P 500, with a year-to-date return of 44.81% compared to the index's 12.22%, further reinforcing the attractiveness of the stock.