Is Universal Security Instruments, Inc. overvalued or undervalued?

As of 19 August 2025, the valuation grade for Universal Security Instruments, Inc. moved from expensive to very attractive, indicating a significant improvement in its valuation outlook. The company appears to be undervalued, particularly when considering its Price to Book Value of 1.61 and an EV to Sales ratio of 0.37, which are notably lower than many peers. Additionally, the EV to EBITDA ratio stands at -8.01, reflecting a challenging earnings environment but also suggesting potential for recovery.
In comparison to peers, Universal Security Instruments, Inc. has a valuation of 5.6285, while SuperCom Ltd. is fairly valued with a P/E of 6.0570. Other peers, such as Iteris, Inc., are significantly more expensive with a P/E of 221.3691. The company's recent stock performance has been impressive, with a year-to-date return of 176.37%, significantly outperforming the S&P 500's 12.22% return, reinforcing the narrative of its undervaluation and potential for growth.