Is Servotronics, Inc. overvalued or undervalued?

As of 17 March 2025, the valuation grade for Servotronics, Inc. has moved from expensive to risky, indicating a shift in perception regarding its financial health and market position. The company is currently considered overvalued given its significant financial ratios, including a Price to Book Value of 5.29, an EV to EBIT of 129.01, and an EV to EBITDA of 111.50. The negative P/E ratio reflects its loss-making status, further supporting the overvaluation assessment.
In comparison to its peers, Servotronics, Inc. shows a stark contrast with SKYX Platforms Corp., which has an EV to EBITDA of -5.06, and CBAK Energy Technology, Inc. with an EV to EBITDA of 16.04. These figures highlight the relative riskiness of Servotronics, Inc. within its industry. Despite its recent stock performance, which has outpaced the S&P 500 significantly over various time frames, the underlying financial metrics suggest that the stock is not justified at its current price level.