Is Preformed Line Products Co. overvalued or undervalued?

As of 11 August 2025, the valuation grade for Preformed Line Products Co. moved from fair to expensive, indicating that the company is overvalued. The P/E ratio stands at 26, significantly higher than the peer average of 18.48 for companies like Tecnoglass, Inc., which is considered very attractive, and also higher than the EV to EBITDA ratio of 13.58, suggesting that the company may not be justifying its current price through earnings or cash flows.
In comparison to its peers, Preformed Line Products Co. has a higher P/E ratio than SPX Technologies, Inc., which is at 45.73, and lower than Masonite International Corp. at 13.28. The company's return performance has been strong, with a year-to-date return of 61.23% compared to the S&P 500's 12.22%, and a one-year return of 72.55% against the S&P 500's 17.14%. This strong performance, however, does not mitigate the fact that the stock appears overvalued based on its current valuation ratios.