Is Capital Product Partners LP overvalued or undervalued?

As of 17 October 2025, the valuation grade for Capital Product Partners LP has moved from attractive to very expensive, indicating a shift towards overvaluation. The company appears overvalued based on key ratios, including a P/E ratio of 25, an EV to EBITDA of 14.25, and a Price to Book Value of 1.80. In comparison, peers like Navios Maritime Partners LP and Global Ship Lease, Inc. exhibit significantly lower P/E ratios of 4.72 and 2.82, respectively, highlighting the disparity in valuation.
Recent performance shows that Capital Product Partners LP has outperformed the S&P 500 over various periods, with a year-to-date return of 23.91% compared to the S&P 500's 13.30%. However, the substantial valuation metrics suggest that the stock may not sustain this growth relative to its peers, reinforcing the conclusion that it is currently overvalued.