Is Knowles Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Knowles Corp. has moved from attractive to expensive, indicating a shift towards overvaluation. The company appears to be overvalued based on its high P/E ratio of 118, a Price to Book Value of 2.03, and an EV to EBITDA of 16.54. In comparison, peers like Camtek Ltd. and Bel Fuse, Inc. have more reasonable P/E ratios of 30.24 and 38.21, respectively, suggesting that Knowles Corp. is trading at a significant premium relative to its industry.
Despite the overvaluation, Knowles Corp. has demonstrated strong performance with a year-to-date return of 17.61%, outperforming the S&P 500's return of 13.30% during the same period. However, its five-year return of 45.86% lags behind the S&P 500's impressive 91.29%, further supporting the notion that the stock may be overextended at its current price.