Is Littelfuse, Inc. overvalued or undervalued?

As of 29 April 2025, Littelfuse, Inc. has moved from an expensive to a very expensive valuation grade. The company is currently overvalued based on its financial metrics. Key ratios include a P/E ratio of 26, an EV to EBITDA of 13.74, and a Price to Book Value of 2.34, which are significantly higher than its peers. For instance, Flex Ltd. has a P/E of 21.52, and Teradyne, Inc. boasts a more attractive P/E of 22.99, indicating that Littelfuse's valuation is not justified compared to these competitors.
The company's return on equity (ROE) stands at 8.96%, while its return on capital employed (ROCE) is 11.36%, both of which suggest that the company is not generating sufficient returns relative to its high valuation. Additionally, Littelfuse's stock has underperformed the S&P 500 over the past year, declining by 15.97% compared to the index's gain of 10.26%. This further reinforces the notion that Littelfuse is currently overvalued in the market.