Is OSI Systems, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for OSI Systems, Inc. moved from very attractive to attractive, indicating a shift in perception regarding its market value. The company appears to be fairly valued based on its current metrics. Key valuation ratios include a P/E ratio of 25, an EV to EBITDA of 16.35, and a PEG ratio of 1.60, which suggest that while the company is priced at a premium compared to some peers, it still maintains reasonable growth expectations.
In comparison to its peers, OSI Systems, Inc. has a lower P/E ratio than Leonardo DRS, Inc. at 43.14 and Crane Co. at 35.01, while being more favorable than AeroVironment, Inc., which has a significantly high P/E of 180.12. The company's strong return performance, with a 1Y return of 112.70% compared to the S&P 500's 19.89%, reinforces the notion that it is currently well-positioned in the market.