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 appears to be overvalued based on its current metrics, with a P/E ratio of 27, an EV to EBITDA ratio of 13.82, and a PEG ratio of 0.48. In comparison, peers such as OSI Systems, Inc. have a P/E of 24.50 and an EV to EBITDA of 16.16, while Kratos Defense & Security Solutions, Inc. shows a significantly higher P/E of 594.28, suggesting that Ducommun's valuation is less favorable relative to its industry.
Despite a strong year-to-date return of 44.42%, which outperformed the S&P 500's 13.30%, the company's long-term performance shows a stark contrast, with a 10-year return of 160.08% compared to the S&P 500's 227.77%. This discrepancy reinforces the notion that Ducommun, Inc. is currently overvalued in the market.