Is Cadre Holdings, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Cadre Holdings, Inc. moved from fair to expensive. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 34, significantly higher than its peer average of approximately 29.63, while the EV to EBITDA ratio is 16.92, which is also elevated compared to the industry benchmarks. Additionally, the Price to Book Value is 4.42, indicating a premium valuation relative to its book value.
In comparison to its peers, AeroVironment, Inc. has a P/E ratio of 180.12, while OSI Systems, Inc. shows a more attractive P/E of 24.50, highlighting the disparity in valuation within the sector. Despite the overvaluation, Cadre Holdings has outperformed the S&P 500 in the year-to-date return, achieving 25.98% compared to the index's 13.30%, but this does not mitigate the concerns regarding its high valuation ratios.