Is Commercial Vehicle Group, Inc. overvalued or undervalued?

As of 10 March 2025, the valuation grade for Commercial Vehicle Group, Inc. has moved from attractive to risky, indicating a significant deterioration in its financial outlook. The company appears to be overvalued, given its low price-to-book value of 0.37, a high EV to EBITDA ratio of 7.94, and a concerning ROE of -25.29%. In comparison to peers, Douglas Dynamics, Inc. has a more favorable P/E ratio of 11.82 and an EV to EBITDA of 13.44, while Wabash National Corp. shows a risky profile with an EV to EBITDA of -19.47.
The company's stock performance has been poor, with a year-to-date return of -21.77% compared to the S&P 500's 12.22%, and a staggering decline of -66.14% over the past five years, while the S&P 500 has gained 96.61%. This stark contrast in returns reinforces the notion that Commercial Vehicle Group, Inc. is currently overvalued in the market.