Is Douglas Dynamics, Inc. overvalued or undervalued?

As of 4 August 2025, Douglas Dynamics, Inc. has moved from fair to attractive in its valuation grade, indicating a positive shift in its market perception. The company appears to be undervalued based on its key ratios, including a P/E ratio of 10, a PEG ratio of 0.09, and an EV to EBITDA of 11.42. In comparison, its peer Wabash National Corp. has a negative P/E, while Columbus McKinnon Corp. also shows a risky valuation with a significantly low P/E of -27.90.
The stock has demonstrated a strong year-to-date return of 40.12%, significantly outperforming the S&P 500's 12.22% during the same period, although it has lagged behind the index over longer time frames, such as the 3-year and 5-year returns. Overall, the attractive valuation grade, combined with favorable ratios and recent performance, suggests that Douglas Dynamics, Inc. is positioned as an undervalued investment opportunity in the automobile sector.