Is Knowles Corp. overvalued or undervalued?

As of 24 July 2025, the valuation grade for Knowles Corp. has moved from risky to expensive. The company is currently overvalued, with a P/E ratio of 118, significantly higher than its peer Camtek Ltd., which has a P/E of 30.24, and TTM Technologies, Inc. at 45.23. Additionally, Knowles Corp. shows an EV to EBITDA ratio of 16.54, which is higher than the industry average, indicating a premium valuation relative to its earnings potential.
In terms of returns, Knowles Corp. has outperformed the S&P 500 over the past year, with a return of 32.44% compared to the index's 17.14%. However, over the longer term, the company's 5-year return of 53.71% lags behind the S&P 500's impressive 96.61% return, suggesting that while recent performance has been strong, it may not be sustainable given the high valuation metrics.