Is VirTra, Inc. overvalued or undervalued?

As of 24 April 2025, the valuation grade for VirTra, Inc. has moved from very expensive to expensive. The company is currently considered overvalued based on its financial ratios. The P/E ratio stands at 52, while the industry average is significantly lower, indicating a premium valuation. Additionally, the EV to EBITDA ratio is 18.91, which further supports the notion of overvaluation when compared to peers.
In comparison to its peers, VirTra, Inc. has a P/E ratio of 49.54, while CI&T, Inc. (Brazil), which is rated attractive, has a P/E of 23.56. The EV to EBIT ratio of 32.48 also highlights the disparity when compared to TruBridge, Inc., which has a negative P/E and a much lower EV to EBITDA of 9.09. Recent stock performance shows that while VirTra has outperformed the S&P 500 over the past week and month, its longer-term returns have lagged, reinforcing the view that it is currently overvalued.