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, indicating that the stock is overvalued. The company exhibits a P/E ratio of 17, an EV to EBITDA of 10.80, and a PEG ratio of 0.32, which suggests that it is trading at a premium compared to its earnings growth potential.
In comparison to its peers, Dorman Products, Inc. has a higher P/E ratio than Autoliv, Inc. at 18.06 and significantly higher than BorgWarner, Inc. at 11.57, both of which are considered more attractive investments. Additionally, the company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of 3.54% compared to the index's 16.30%, reinforcing the notion that Dorman Products, Inc. is currently overvalued.