Is Sono-Tek Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Sono-Tek Corp. has moved from fair to very expensive, indicating that the company is overvalued. Key valuation ratios highlight this assessment: the P/E ratio stands at 46, the EV to EBIT ratio is 45.34, and the Price to Book Value is 3.24. In comparison to peers, Graham Corp. has a P/E of 41.09 and an EV to EBITDA of 23.99, both of which suggest a more favorable valuation relative to Sono-Tek.
Additionally, Sono-Tek's recent stock performance shows a decline of 7.57% over the past year, while the S&P 500 has increased by 14.08% in the same period, reinforcing the notion that the stock may be overvalued. Overall, the high valuation ratios and poor relative performance suggest that investors should approach Sono-Tek with caution.