Is Holley, Inc. overvalued or undervalued?

As of 11 March 2025, Holley, Inc. has moved from a valuation grade of very expensive to risky, indicating a significant shift in its perceived value. The company is currently considered overvalued. Key ratios include a P/E ratio of 12, an EV to EBITDA of 6.84, and a Price to Book Value of 0.59, which suggest that the company is not performing well relative to its peers.
In comparison to its peers, Holley, Inc. has a P/E ratio of 11.36, while PHINIA, Inc. is rated very expensive with a P/E of 18.52, and Titan International, Inc. is also risky with a P/E of -39.97. The PEG ratio for Holley stands at 4.28, which is significantly higher than its peers, indicating that the stock may be overvalued based on its growth prospects. Additionally, Holley has underperformed the S&P 500 significantly over various time frames, with a year-to-date return of -33.77% compared to the S&P 500's 2.44%.