Is Value Line, Inc. overvalued or undervalued?

As of 24 July 2025, the valuation grade for Value Line, Inc. has moved from fair to attractive, indicating a more favorable assessment of its worth. The company appears undervalued, particularly when considering its P/E ratio of 19, which is lower than the peer average of approximately 18.54. Additionally, the EV to EBITDA ratio stands at 38.27, while its peer Scholastic Corp. has a significantly higher ratio of 9.18, further suggesting that Value Line, Inc. is positioned favorably in comparison to its peers.
The company also boasts a robust ROCE of 27.21% and an ROE of 20.21%, reflecting strong profitability metrics. In terms of recent performance, Value Line, Inc. has faced challenges, with a year-to-date return of -27.05%, significantly underperforming the S&P 500's 12.22% during the same period. This underperformance, combined with its attractive valuation ratios, reinforces the notion that the stock may be undervalued relative to its potential.