Is Deluxe Corp. overvalued or undervalued?

As of 14 April 2025, the valuation grade for Deluxe Corp. has moved from expensive to very attractive. The company is currently considered undervalued, with a P/E ratio of 7, significantly lower than its peers such as CompoSecure, Inc. with a P/E of 18.16 and Ennis, Inc. at 13.87. Additionally, Deluxe Corp. boasts an EV to EBITDA ratio of 5.48, while CompoSecure has a much higher ratio of 15.52, further indicating its relative undervaluation.
The company also demonstrates strong financial metrics, including a dividend yield of 7.87% and a return on equity (ROE) of 14.96%. Notably, the EV to Sales ratio stands at 0.99, suggesting that the market is valuing the company's sales at a discount compared to its peers. Despite recent underperformance against the S&P 500 over various time frames, the current valuation metrics suggest that Deluxe Corp. presents a compelling investment opportunity.