Is Dorman Products, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Dorman Products, Inc. moved from fair to expensive, indicating that the stock is overvalued. The company exhibits a P/E ratio of 17, a Price to Book Value of 2.89, and an EV to EBITDA of 10.80, which are relatively high compared to its peers. For instance, Autoliv, Inc. has a P/E ratio of 18.06 and an EV to EBITDA of 9.21, while BorgWarner, Inc. shows a P/E of 11.57 and an EV to EBITDA of 6.84, suggesting that Dorman is priced at a premium in its industry.
In terms of recent performance, Dorman Products has underperformed relative to the S&P 500, with a year-to-date return of 3.11% compared to the S&P 500's 16.30%. This trend continues over longer periods, as evidenced by a 5-year return of 47.00% for Dorman versus 109.18% for the S&P 500, reinforcing the notion that the stock may be overvalued given its lackluster performance against a strong market backdrop.