Is Proto Labs, Inc. overvalued or undervalued?

As of 7 November 2025, the valuation grade for Proto Labs, Inc. has moved from fair to very expensive, indicating that the company is overvalued. The key valuation ratios reveal a P/E ratio of 44, an EV to EBITDA of 13.93, and a PEG ratio of 4.96, all suggesting a high valuation relative to its earnings growth potential. In comparison, peers such as Genesis Energy LP have a P/E of 126.33, while Ecovyst, Inc. shows a more reasonable P/E of 18.34, highlighting that Proto Labs is priced significantly higher than some competitors.
Despite a strong year-to-date return of 25.33% compared to the S&P 500's 14.40%, the longer-term performance shows a concerning decline of 62.60% over the past five years, which raises questions about sustainability at its current valuation. Overall, Proto Labs appears overvalued based on its financial metrics and peer comparisons.