Is CTS Corp. overvalued or undervalued?

As of 9 September 2025, the valuation grade for CTS Corp. has moved from attractive to very attractive. Despite this positive change, the company appears to be overvalued based on its current valuation ratios. The P/E ratio stands at 38, which is significantly higher than the peer average of 35.62 for similar companies, while the EV to EBITDA ratio of 20.81 also exceeds the peer average of 19.74. Additionally, the PEG ratio of 4.59 indicates that the stock may be overvalued relative to its growth prospects.
In comparison to its peers, Littelfuse, Inc. has a P/E of 30.08 and Universal Display Corp. has a P/E of 28.20, both suggesting that CTS Corp. is trading at a premium. Furthermore, the company's recent stock performance has been underwhelming, with a year-to-date return of -19.10% compared to the S&P 500's gain of 12.22%, reinforcing the notion that the stock may not be justified at its current valuation levels.