Is Dana, Inc. overvalued or undervalued?

As of 31 July 2024, Dana, Inc. has moved from a fair to a risky valuation grade, indicating a potential overvaluation. The company appears to be overvalued, particularly when considering its P/E ratio of 68, which is significantly higher than its peers, such as Autoliv, Inc. with a P/E of 18.06 and Allison Transmission Holdings, Inc. at 9.98. Additionally, Dana's EV to EBITDA stands at 15.08, while its peers generally show more favorable ratios, with Allison at 8.17 and Autoliv at 9.21.
The company's return metrics also highlight its performance relative to the S&P 500, with a year-to-date return of 81.49% compared to the index's 12.22%, although its longer-term performance over 10 years lags behind the S&P 500's 231.64%. This divergence suggests that while Dana has had strong short-term gains, its high valuation ratios may not be sustainable in the long run.