Is Core Molding Technologies, Inc. overvalued or undervalued?

As of 7 November 2023, the valuation grade for Core Molding Technologies, Inc. has moved from very attractive to attractive, indicating a shift in market perception. The company is currently fairly valued, with a P/E ratio of 18, which is slightly above the peer average of 18.37 for CECO Environmental Corp. and significantly lower than The Gorman-Rupp Co. at 21.65. Additionally, the EV to EBITDA ratio stands at 6.38, which is more favorable compared to CECO's 23.35, suggesting better operational efficiency.
Core Molding's ROCE is at 12.15% and ROE at 7.46%, reflecting solid returns on capital and equity. While the stock has underperformed the S&P 500 in the past year with a return of 3.44% compared to 10.26%, its long-term performance over three and five years has been strong, with returns of 83.56% and 283.29%, respectively. Overall, the company appears to be fairly valued in the current market context.