Is Graham Corp. overvalued or undervalued?

As of 17 October 2025, Graham Corp. has moved from an attractive to an expensive valuation grade. The company is currently overvalued, as indicated by its high P/E ratio of 54, a Price to Book Value of 4.06, and an EV to EBIT of 41.93. In comparison, peers such as Hyster-Yale Materials Handling, Inc. have a P/E of 15.05 and Eastman Kodak Co. has an EV to EBITDA of 57.99, highlighting the relative expense of Graham Corp. within its industry.
Despite its overvaluation, Graham Corp. has demonstrated strong stock performance, with a 1-year return of 88.26% compared to the S&P 500's 14.08%, and an impressive 3-year return of 671.06% against the S&P 500's 81.19%. This performance suggests that while the stock may be overvalued based on traditional metrics, market sentiment has been highly favorable.