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 metrics, 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 such as Navios Maritime Partners LP and Global Ship Lease, Inc. show significantly lower P/E ratios of 4.72 and 2.82, respectively, highlighting the premium at which Capital Product Partners is trading.
Despite the overvaluation, the company has demonstrated strong recent performance, with a year-to-date return of 23.91%, outperforming the S&P 500's return of 13.30% over the same period. However, the three-year return of 56.14% is notably lower than the S&P 500's 81.19%, suggesting that while the stock has performed well recently, it may not justify its current valuation in the long term.