Is Dorman Products, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Dorman Products, Inc. has moved from fair to expensive. The company is currently considered overvalued based on its valuation ratios, including a P/E ratio of 17, a Price to Book Value of 2.89, and an EV to EBITDA of 10.80. In comparison to peers, Dorman's P/E ratio is notably higher than Autoliv, Inc. at 18.06 and significantly above BorgWarner, Inc. at 11.57, indicating a premium valuation relative to these competitors.
Additionally, Dorman's recent stock performance has been underwhelming, with a 1-year return of 17.63% compared to the S&P 500's 19.89%, and a stark decline of 15.12% over the past week while the S&P 500 gained 0.71%. This underperformance, coupled with its high valuation ratios, reinforces the conclusion that Dorman Products, Inc. is currently overvalued.