Is Standard Motor Products, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Standard Motor Products, Inc. has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently overvalued, with a P/E ratio of 11, a Price to Book Value of 1.12, and an EV to EBITDA ratio of 7.33. In comparison to peers, LKQ Corp. has a P/E of 12.19 and Dorman Products, Inc. has a notably higher P/E of 21.88, highlighting that Standard Motor Products is priced higher relative to its earnings than some competitors.
Despite a strong year-to-date return of 27.66% compared to the S&P 500's 13.30%, the long-term performance reveals a concerning trend, with a 5-year return of -15.76% against the S&P 500's impressive 91.29%. This suggests that while the stock may have performed well recently, its overall valuation appears unsustainable given its current metrics.