Is Perimeter Solutions SA overvalued or undervalued?

As of 3 October 2025, the valuation grade for Perimeter Solutions SA has moved from fair to expensive. The company is currently considered overvalued, with a P/E ratio of 14, which is significantly lower than its peer average of approximately 42.32. Additionally, the EV to EBITDA ratio stands at 11.51, while the industry peers show much higher valuations, such as Eastman Chemical Co. at 10.37 and Element Solutions, Inc. at 14.82.
Despite its recent strong performance, with a year-to-date return of 74.65% compared to the S&P 500's 14.18%, the valuation metrics suggest that Perimeter Solutions SA is not justified at its current price level. The company’s ROE is 10.96%, which is relatively modest compared to the high valuations of its peers, indicating that the market may be overestimating its growth potential.