Is Perimeter Solutions SA overvalued or undervalued?

As of 8 May 2025, the valuation grade for Perimeter Solutions SA has moved from risky to very attractive, indicating a significant improvement in its investment profile. The company is currently deemed undervalued, supported by a P/E ratio of 14, which is lower than the industry average of approximately 16.6, and an EV to EBITDA ratio of 11.51, which is competitive compared to peers like Flexible Solutions International, Inc. with a ratio of 8.44. Additionally, the company's ROE stands at 10.96%, suggesting effective management of equity.
In comparison to its peers, Perimeter Solutions SA shows a favorable position with its P/E ratio of 14.55 against Arq, Inc., which has a negative P/E of -227.59, and Fuel Tech, Inc. with a similarly poor performance. The recent stock performance has also been strong, with a 1-year return of 76.64% compared to the S&P 500's 10.26%, reinforcing the notion that the stock is undervalued relative to its growth potential.