Is Cadre Holdings, Inc. overvalued or undervalued?

As of 10 October 2025, Cadre Holdings, Inc. has moved from a fair to an expensive valuation grade. The company appears to be overvalued based on its current metrics, with a P/E ratio of 34, a Price to Book Value of 4.42, and an EV to EBITDA of 16.92. In comparison to peers, Cadre's P/E ratio is significantly higher than that of OSI Systems, Inc. at 24.50 and AAR Corp. at 151.99, indicating a premium valuation relative to its industry.
Despite the overvaluation, Cadre has shown strong returns, outperforming the S&P 500 with a 1-month return of 21.78% compared to the index's 0.31%. However, its 1-year return of -3.71% lags behind the S&P 500's 13.36%, suggesting that while the stock has had recent momentum, it may not be sustainable given its current valuation.