Is Perimeter Solutions SA overvalued or undervalued?

As of 24 October 2025, the valuation grade for Perimeter Solutions SA has moved from fair to expensive, indicating that the company is overvalued. Key valuation ratios reveal a P/E ratio of 14, an EV to EBITDA of 11.51, and a Price to Book Value of 1.55, which suggest that the company's valuation metrics are not competitive compared to its peers. For instance, Eastman Chemical Co. has a more attractive P/E ratio of 15.68 and an EV to EBITDA of 10.37, while Element Solutions, Inc. shows a P/E of 24.64 and an EV to EBITDA of 14.82, further highlighting Perimeter's relative overvaluation.
Despite a strong year-to-date return of 72.54% compared to the S&P 500's 15.47%, the current valuation metrics suggest that investors may be overestimating the company's future growth potential. This discrepancy between high returns and elevated valuation ratios reinforces the conclusion that Perimeter Solutions SA is currently overvalued.