Is Gentherm, Inc. overvalued or undervalued?

As of 17 October 2025, Gentherm, Inc. has moved from a fair to a very expensive valuation grade. The company appears to be overvalued, with a P/E ratio of 12, which is significantly lower than its peer average of approximately 25.79, and an EV to EBITDA ratio of 5.36 compared to peers like Donaldson Co., Inc. at 18.30. Additionally, Gentherm's Price to Book Value stands at 1.29, indicating a premium over its book value, yet it is still less than the industry average.
In comparison to its peers, Allison Transmission Holdings, Inc. is considered attractive with a P/E of 9.98 and EV to EBITDA of 8.17, while Gentex Corp. is fairly valued with a P/E of 15.33 and an EV to EBITDA of 10.91. The recent performance of Gentherm shows a stark contrast to the S&P 500, with a year-to-date return of -14.51% compared to the S&P's 13.30%, reinforcing the notion that the stock is overvalued.