Is Knowles Corp. overvalued or undervalued?

As of 31 July 2024, Knowles Corp. has moved from an attractive to a risky valuation grade. The company is currently considered overvalued. Key ratios include a P/E ratio of 118, an EV to EBITDA of 16.54, and a Price to Book Value of 2.03. In comparison, Bel Fuse, Inc. has a P/E of 27.60 and an EV to EBITDA of 18.36, while Methode Electronics, Inc. is also rated risky with a negative P/E of -9.76 and an EV to EBITDA of 11.50.
Despite a recent uptick in stock price, Knowles Corp. has underperformed the S&P 500 year-to-date, with a return of -12.09% compared to the index's 2.44%. This performance, combined with its high valuation ratios and the downgrade in its valuation grade, reinforces the conclusion that Knowles Corp. is overvalued in the current market.