Is Fathom Digital Manufacturing Corp. overvalued or undervalued?

As of 15 October 2023, Fathom Digital Manufacturing Corp. has moved from fair to overvalued. The company currently exhibits a price-to-earnings (P/E) ratio of 35.2, a price-to-book (P/B) ratio of 4.8, and a return on equity (ROE) of 12.5%. In comparison, its peers, such as Proto Labs with a P/E of 25.4 and 3D Systems at a P/B of 3.1, indicate that Fathom is trading at a premium relative to the industry average.
Given these ratios and the elevated valuation metrics, Fathom Digital Manufacturing Corp. is considered overvalued. The company's recent stock performance has not significantly outpaced the Sensex, further supporting the notion that its current valuation may not be justified in light of its financial ratios and peer comparisons.