Is CTS Corp. overvalued or undervalued?

As of 19 September 2025, the valuation grade for CTS Corp. has moved from attractive to very attractive, indicating a stronger outlook for the company's valuation. Based on the provided metrics, CTS Corp. appears to be undervalued. The company has a P/E ratio of 38, which is higher than the peer average of approximately 35.62, while its EV to EBITDA ratio of 20.81 is also above the peer average of 19.74. Additionally, the PEG ratio stands at 4.59, suggesting 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 an EV to EBITDA of 15.40, while Universal Display Corp. shows a P/E of 28.20 and an EV to EBITDA of 21.14. This indicates that CTS Corp. is priced higher than some of its peers despite its attractive valuation grade. Over the past year, CTS Corp. has underperformed the S&P 500, with a return of -14.12% compared to the index's 16.64%, which may suggest a potential buying opportunity as the market has not fully recognized its value.