Is Taitron Components, Inc. overvalued or undervalued?

As of 14 August 2025, the valuation grade for Taitron Components, Inc. has moved from very attractive to risky, indicating a shift in perception regarding its investment potential. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 13, which is significantly lower than the peer average of 23.93 for Alliance Entertainment Holding Corp. and 26.60 for Climb Global Solutions, Inc. Additionally, the Price to Book Value stands at 0.84, and the EV to EBITDA ratio is 4.61, both suggesting that the company may not be positioned favorably compared to its peers.
The stock has underperformed relative to the S&P 500, with a year-to-date return of -1.00% compared to the index's 12.22%, and a three-year return of -33.94% against 70.41% for the S&P 500. This performance further reinforces the notion that Taitron Components, Inc. is currently overvalued in the market.