Is Gentex Corp. overvalued or undervalued?

As of 8 May 2025, Gentex Corp. has moved from an expensive to a fair valuation grade. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 12, an EV to EBITDA of 8.18, and a Price to Book Value of 1.94.
In comparison to its peers, Gentex Corp. is positioned favorably against Aptiv Plc, which has a P/E of 7.26 and is deemed expensive, and Allison Transmission Holdings, Inc., which is attractive with a P/E of 10.51. Despite Gentex's fair valuation, its recent performance has lagged behind the S&P 500, with a year-to-date return of -25.03% compared to the index's 2.44%. This underperformance may suggest potential challenges ahead, but the current valuation appears justified based on the ratios and peer comparisons.