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. Key ratios include a P/E ratio of 34, a Price to Book Value of 4.42, and an EV to EBITDA of 16.92, which are significantly higher than some peers, such as OSI Systems, Inc. with a P/E of 24.50 and an EV to EBITDA of 16.16, indicating that Cadre is trading at a premium relative to its industry counterparts.
In terms of recent performance, Cadre Holdings has outperformed the S&P 500 over the last week and month, with returns of 6.07% and 23.87%, respectively, compared to the S&P 500's 1.70% and 0.96%. However, over the longer term, such as the 3-year period, Cadre's return of 43.38% still lags behind the S&P 500's 81.19%, reinforcing the notion that despite short-term gains, the stock may be overvalued in the context of its growth potential and competitive positioning.