Is Aspen Aerogels, Inc. overvalued or undervalued?

As of 8 May 2025, Aspen Aerogels, Inc. has moved from a fair to a risky valuation grade, indicating a shift in perception regarding its financial health and market position. The company is currently considered overvalued. Key ratios include a P/E ratio of 13, an EV to EBITDA of 6.03, and a PEG ratio of 0.06, which suggests that despite a low valuation relative to earnings growth, the overall risk profile has deteriorated.
In comparison to peers, UFP Technologies, Inc. has a P/E of 27.51 and an EV to EBITDA of 18.48, while Montauk Renewables, Inc. is deemed very expensive with a P/E of 31.13. This stark contrast highlights the challenges Aspen Aerogels faces in attracting investment. Additionally, the company's recent stock performance has significantly lagged behind the S&P 500, with a year-to-date decline of 51.01% compared to a modest gain of 2.44% for the index, further reinforcing the notion of overvaluation.