Is CPI Aerostructures, Inc. overvalued or undervalued?

As of 15 May 2025, the valuation grade for CPI Aerostructures, Inc. has moved from attractive to fair, indicating a shift in its perceived value. Based on the analysis, the company appears to be fairly valued at this time. The P/E ratio stands at 21, while the industry average P/E is approximately 22.16, suggesting that CPI Aerostructures is in line with its peers. Additionally, the EV to EBITDA ratio is 7.92, which is competitive compared to Byrna Technologies, Inc. at 62.87 and TAT Technologies Ltd. at 17.32.
In terms of profitability, CPI Aerostructures has a ROCE of 11.22% and an ROE of 7.25%, which are reasonable figures but indicate room for improvement compared to more attractive peers like Innovative Solutions & Support, Inc., which boasts a P/E of 22.95. The stock has shown a notable return of 32.77% over the past year, outperforming the S&P 500's return of 10.26%, which may reinforce the current valuation perspective. Overall, CPI Aerostructures is fairly valued in the current market context.