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 a significant shift in its perceived value. The company appears to be overvalued, with a P/E ratio of 44, a Price to Book Value of 1.39, and an EV to EBIT of 35.23, all of which suggest that the stock is trading at a premium compared to its earnings and assets.
In comparison to its peers, Proto Labs has a notably higher P/E ratio than Genesis Energy LP, which stands at 126.33, and a significantly lower EV to EBITDA ratio than Ecovyst, Inc., which is at 10.41. This disparity highlights the overvaluation of Proto Labs relative to its industry. Additionally, while the company has shown strong returns year-to-date at 25.43% compared to the S&P 500's 14.40%, its long-term performance over five and ten years has been poor, with returns of -62.93%, suggesting that the current high valuation may not be sustainable.