Is Park Aerospace Corp. overvalued or undervalued?

As of 17 July 2025, the valuation grade for Park Aerospace Corp. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is overvalued, as evidenced by its P/E ratio of 43, which is notably higher than its peer average of 55.45, and an EV to EBITDA ratio of 19.55 compared to peers like Kaman Corp. at 18.74. Additionally, the Price to Book Value stands at 2.69, further supporting the overvaluation narrative.
In comparison to its peers, Smith & Wesson Brands, Inc. presents a more attractive valuation with a P/E of 47.99 and an EV to EBITDA of 13.02, highlighting the relative expense of Park Aerospace. Despite this overvaluation, the company has shown strong performance, with a year-to-date return of 35.09% compared to the S&P 500's 12.22%, reflecting investor confidence even amidst high valuation metrics.