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, indicating a shift in market perception. The company appears to be fairly valued, with a P/E ratio of 25, an EV to EBITDA of 16.35, and a PEG ratio of 1.60. In comparison to peers, Leonardo DRS, Inc. has a higher P/E of 43.14, while Crane Co. shows a P/E of 35.01, suggesting that OSI Systems is positioned competitively within its industry.
The company's recent stock performance has been impressive, with a year-to-date return of 66.31% compared to the S&P 500's 16.30%, and a one-year return of 110.62% against the S&P 500's 19.89%. This strong performance reinforces the notion that OSI Systems is currently fairly valued in the market.