Is Ducommun, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Ducommun, Inc. has moved from very attractive to expensive, indicating a shift towards overvaluation. The company is currently considered overvalued based on its valuation metrics. Key ratios include a P/E ratio of 27, an EV to EBITDA of 13.82, and a Price to Book Value of 1.58, all of which suggest that the stock is priced higher than its fundamental value.
In comparison with peers, Ducommun's P/E ratio of 30.70 is higher than that of OSI Systems, Inc., which has a P/E of 24.50, and significantly higher than Kratos Defense & Security Solutions, Inc. with a P/E of 594.28. Despite a strong year-to-date return of 44.42%, which outperformed the S&P 500's 13.30%, the long-term returns of 160.08% over five years lag behind the S&P 500's 227.77%, reinforcing the notion that the stock may be overvalued at its current price.