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 considered overvalued based on key metrics such as a P/E ratio of 118, an EV to EBITDA of 16.54, and a Price to Book Value of 2.03. In comparison to peers, Knowles Corp.'s P/E ratio significantly exceeds that of Camtek Ltd. at 30.24 and Bel Fuse, Inc. at 38.21, highlighting its relative overvaluation in the industry.
Despite this overvaluation, Knowles Corp. has shown strong returns, outperforming the S&P 500 with a 1-year return of 30.88% compared to the index's 14.08%. However, the company's 5-year return of 45.86% lags behind the S&P 500's impressive 91.29%, suggesting that while it has performed well recently, its long-term growth may not justify its current valuation.