Is Materion Corp. overvalued or undervalued?

As of 16 June 2025, the valuation grade for Materion Corp. has moved from fair to very expensive, indicating that the company is overvalued. The key ratios reveal a P/E ratio of 25, a Price to Book Value of 2.48, and an EV to EBITDA of 12.76, all of which suggest a premium valuation compared to its peers. Notably, while Materion's P/E ratio stands at 25, Nova Ltd., a peer, has a significantly higher P/E of 31.67, but with a much lower PEG ratio of 0.6155, indicating better growth potential relative to its price.
In comparison to other peers, Itron, Inc. has a P/E of 22.14 and EV to EBITDA of 17.26, which further reinforces the notion that Materion Corp. may be overvalued given its higher ratios without a corresponding growth outlook. Additionally, the company's recent stock performance has been underwhelming, with a year-to-date return of -21.25% compared to a positive 2.44% return for the S&P 500, further highlighting the disconnect between its valuation and market performance.