Is Capital Product Partners LP overvalued or undervalued?

As of 8 September 2025, the valuation grade for Capital Product Partners LP has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company appears to be overvalued based on its P/E ratio of 25, which is significantly higher than its peers, such as Navios Maritime Partners LP with a P/E of 4.72 and Global Ship Lease, Inc. at 2.82. Additionally, the EV to EBITDA ratio stands at 14.25, which also exceeds the industry benchmarks, suggesting that the stock may not be a favorable investment at its current price.
In terms of returns, while Capital Product Partners LP has shown a year-to-date return of 14.92% compared to the S&P 500's 12.22%, its longer-term performance has lagged, particularly over three years where it returned 39.83% versus the S&P 500's 70.41%. This disparity in performance, combined with the high valuation ratios, reinforces the conclusion that Capital Product Partners LP is overvalued in the current market.