Is Climb Global Solutions, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Climb Global Solutions, Inc. moved from fair to attractive, indicating a positive shift in its valuation outlook. The company appears to be undervalued, supported by a P/E ratio of 24, a PEG ratio of 0.25, and an impressive ROCE of 49.04%. In comparison to its peers, Climb Global Solutions has a higher P/E ratio than Alliance Entertainment Holding Corp. at 23.93 and a significantly lower PEG ratio than Taitron Components, Inc. which is at 0.00.
Despite recent challenges, including a 19.11% decline over the past month compared to a 1.92% gain in the S&P 500, Climb Global Solutions has demonstrated strong long-term performance with a remarkable 410.37% return over the past five years, significantly outperforming the S&P 500's 109.18% return in the same period. This long-term performance, combined with its attractive valuation ratios, reinforces the view that the company is currently undervalued.