Is Dorman Products, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Dorman Products, Inc. moved from fair to expensive. The company appears overvalued based on its current metrics, particularly with a P/E ratio of 17, which is higher than the peer average of 11.57 for companies like BorgWarner, Inc. Additionally, Dorman's EV to EBITDA ratio stands at 10.80, compared to Autoliv, Inc.'s more attractive 9.21, and its PEG ratio of 0.32 suggests that growth expectations may not justify its current price.
In terms of returns, Dorman Products has underperformed relative to the S&P 500 over the past year, with a return of 2.69% compared to the index's 19.89%, and it has also lagged significantly over the 5-year period, achieving only 44.42% against the S&P 500's 109.18%. This performance, combined with the valuation metrics, reinforces the conclusion that Dorman Products, Inc. is overvalued in its current market position.