Is Powell Industries, Inc. overvalued or undervalued?
As of June 30, 2025, Powell Industries, Inc. is considered an attractive investment due to its undervalued status, highlighted by a P/E ratio of 14, a PEG ratio of 0.21, a strong ROCE of 136.13%, and significant outperformance against the S&P 500 with a year-to-date return of 37.29% and a 1-year return of 68.37%.
As of 30 June 2025, Powell Industries, Inc. has moved from fair to attractive in its valuation grade. The company appears to be undervalued, supported by a P/E ratio of 14, a PEG ratio of 0.21, and a robust ROCE of 136.13%. In comparison to its peers, Powell Industries has a lower P/E than Lumentum Holdings, Inc. at 172.90 and a competitive EV to EBITDA of 9.63 compared to Encore Wire Corp. at 9.60.The stock has significantly outperformed the S&P 500, with a year-to-date return of 37.29% versus the index's 12.22%, and an impressive 1-year return of 68.37% compared to 17.14% for the S&P 500. This strong performance reinforces the attractiveness of Powell Industries' current valuation.
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