Is Standard Motor Products, Inc. overvalued or undervalued?

As of 6 June 2025, the valuation grade for Standard Motor Products, Inc. has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a P/E ratio of 11, an EV to EBITDA of 7.33, and a PEG ratio of 4.26, which suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison with its peers, Standard Motor Products, Inc. has a P/E ratio of 11.03, while XPEL, Inc. is at 21.19, highlighting that Standard Motor Products is cheaper on a P/E basis but still carries a high valuation grade. The EV to EBITDA ratio for Standard is 7.33 compared to XPEL's 13.50, further reinforcing the notion of overvaluation despite a relatively lower multiple. Additionally, the company's recent stock performance shows a 1-month return of 6.63%, outperforming the S&P 500's 3.83% return, yet this does not mitigate the overall valuation concerns.