Is Allient, Inc. overvalued or undervalued?

As of 7 May 2025, the valuation grade for Allient, Inc. has moved from fair to very expensive, indicating a significant shift in its market perception. The company appears overvalued, particularly when considering its P/E ratio of 271, which is substantially higher than its peers, such as Thermon Group Holdings, Inc. with a P/E of 17.02 and Steel Partners Holdings LP at 5.40. Additionally, Allient's EV to EBITDA stands at 12.70, while its peers exhibit much lower ratios, further emphasizing its overvaluation.
The company's return on capital employed (ROCE) is only 6.81%, and its return on equity (ROE) is a mere 0.73%, suggesting inefficiencies in generating profit relative to its equity base. These figures, combined with the stark contrast in valuation ratios compared to its peers, reinforce the conclusion that Allient, Inc. is overvalued in the current market. Despite its recent stock performance showing a 42.55% year-to-date return compared to the S&P 500's 2.44%, the underlying valuation metrics indicate that investors may be paying too high a price for its stock.