Is Cadre Holdings, Inc. overvalued or undervalued?

As of 17 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 its peers, AeroVironment, Inc. has a significantly higher P/E of 180.12, while OSI Systems, Inc. presents a more attractive P/E of 24.50, indicating that Cadre Holdings is trading at a premium relative to some of its industry counterparts.
Despite its recent stock performance, where it outperformed the S&P 500 with a 1-month return of 23.87% compared to 0.96%, the overall valuation metrics suggest that the stock is not justified at its current price level. The combination of high valuation ratios and the movement to an expensive grade indicates that investors may be overestimating the company's future growth potential.