Is Preformed Line Products Co. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Preformed Line Products Co. has moved from attractive to expensive, indicating a shift in perception towards the company's valuation. Based on the current metrics, the company appears to be overvalued. The P/E ratio stands at 26, significantly higher than the peer average of 31.22, while the EV to EBITDA ratio is 13.58 compared to the peer average of 16.29, suggesting that despite a high valuation, it is performing better in terms of earnings relative to enterprise value. Additionally, the Price to Book Value is 2.31, which also reflects a premium valuation.
In comparison to its peers, SPX Technologies, Inc. has a P/E ratio of 45.73, indicating it is very expensive, while Tecnoglass, Inc. shows a more attractive valuation with a P/E of 18.48. This context highlights that Preformed Line Products Co. is not the most expensive in its sector, but its current valuation does not justify the growth potential. Notably, the company's stock has outperformed the S&P 500 significantly over multiple periods, with a year-to-date return of 76.54% compared to the S&P 500's 13.30%, reinforcing the notion that while the stock has performed well, its current valuation may not be sustainable.