Is Standard Motor Products, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Standard Motor Products, Inc. moved from expensive to very expensive. This indicates that the company is overvalued. Key valuation ratios include a P/E ratio of 11, an EV to EBITDA ratio of 7.33, and a Price to Book Value of 1.12. In comparison, peers such as LKQ Corp. have a P/E of 12.19, and Dorman Products, Inc. shows a significantly higher P/E of 21.88, highlighting that Standard Motor Products is priced higher relative to its earnings than some of its competitors.
Despite a strong year-to-date return of 27.66% compared to the S&P 500's 13.30%, the longer-term performance shows 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 long-term outlook remains uncertain, reinforcing the conclusion that it is currently overvalued.