Is OSI Systems, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for OSI Systems, Inc. has moved from very attractive to attractive. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 25, significantly higher than the peer average of approximately 24.50, while the EV to EBITDA ratio of 16.35 also exceeds the peer average of 16.16. Additionally, the PEG ratio of 1.60 suggests that the stock may not be growing fast enough to justify its current price.
In comparison to its peers, Leonardo DRS, Inc. has a much higher P/E ratio of 43.14, indicating that OSI Systems is relatively more attractive in terms of valuation despite being overvalued. Crane Co. has a P/E ratio of 35.01, further emphasizing the competitive landscape. Over the past year, OSI Systems has outperformed the S&P 500, returning 110.62% compared to the index's 19.89%, which highlights the stock's strong performance but also raises questions about sustainability at its current valuation.