Is Park Aerospace Corp. overvalued or undervalued?

As of 16 June 2025, Park Aerospace Corp. has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued based on its financial metrics. Key ratios include a P/E ratio of 43, an EV to EBITDA of 19.55, and a Price to Book Value of 2.69.
When compared to peers, Park Aerospace's P/E ratio of 41.94 is significantly higher than that of Cadre Holdings, Inc. at 33.56 and Triumph Group, Inc. at 29.93, indicating a premium valuation relative to these competitors. Additionally, while the company has a solid ROCE of 24.49%, its ROE of 6.23% suggests that returns on equity are not keeping pace with its high valuation. Recent stock performance shows a 1-year return of 3.19%, which lags behind the S&P 500's 10.26% return, further reinforcing the notion that the stock may be overvalued.