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 overvaluation. 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, which are all higher than some of its peers. For instance, LKQ Corp. has a P/E of 12.19 and an EV to EBITDA of 8.24, while Dorman Products, Inc. shows a much higher P/E of 21.88, further emphasizing the relative overvaluation of Standard Motor Products.
In terms of recent performance, the stock has outperformed the S&P 500 over the past week and year, with returns of 3.75% and 25.12%, respectively, compared to the S&P 500's 1.70% and 14.08%. However, the longer-term returns reveal a concerning trend, with a 5-year return of -15.76% compared to the S&P 500's impressive 91.29%, reinforcing the notion that despite short-term gains, the stock may not be a sustainable investment at its current valuation.