Is Ecovyst, Inc. overvalued or undervalued?

As of 27 February 2025, the valuation grade for Ecovyst, Inc. has moved from expensive to risky, indicating a shift in perception regarding its valuation. Based on the current metrics, the company appears to be overvalued. The P/E ratio stands at 16, while the EV to EBITDA ratio is 9.27, and the Price to Book Value is 1.35, which suggests that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Ecovyst's P/E ratio of 18.34 is higher than that of Minerals Technologies, Inc., which has a P/E of 12.35, indicating that Ecovyst may be overvalued relative to this competitor. Additionally, while Hawkins, Inc. has a significantly higher P/E of 43.65, it is considered fair, suggesting that Ecovyst's valuation is not justified in the same way. Over the past year, Ecovyst has returned 43.78%, outperforming the S&P 500's 17.14%, but this strong performance may not be sustainable given its current valuation metrics.