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 is currently overvalued, with a P/E ratio of 118, significantly higher than its peers such as Camtek Ltd. at 30.24 and Bel Fuse, Inc. at 38.21. Additionally, Knowles Corp. has an EV to EBITDA ratio of 16.54, which is also elevated compared to the industry average.
In terms of performance, Knowles Corp. has shown strong returns, with a year-to-date return of 17.61% compared to the S&P 500's 13.30%, and a one-year return of 30.88% versus the S&P 500's 14.08%. However, the overall valuation metrics suggest that the stock is priced too high relative to its earnings potential and industry peers.