Is Mayville Engineering Co., Inc. overvalued or undervalued?

As of 6 May 2025, the valuation grade for Mayville Engineering Co., Inc. has moved from attractive to fair. The company appears to be fairly valued at this time. Key ratios include a P/E ratio of 83, an EV to EBITDA of 7.89, and a Price to Book Value of 1.28.
In comparison to its peers, Mayville Engineering's P/E ratio is significantly higher than CECO Environmental Corp. at 18.37 and The Gorman-Rupp Co. at 21.65, indicating a premium valuation relative to these companies. Additionally, while Mayville's EV to EBITDA is lower than the industry average, its ROCE of 4.04% and ROE of 1.55% suggest limited profitability compared to its peers. Despite a recent stock performance that has outpaced the S&P 500 over the past week, the overall valuation metrics suggest that the company is fairly valued in the current market context.