Is STRATTEC Security Corp. overvalued or undervalued?

As of 8 May 2025, the valuation grade for STRATTEC Security Corp. has moved from attractive to fair. The company appears to be fairly valued at this time. Key ratios include a P/E ratio of 19, an EV to EBITDA of 9.45, and a PEG ratio of 0.02, which suggests strong growth potential relative to its price.
In comparison to peers, STRATTEC's P/E ratio of 20.75 is higher than PHINIA, Inc. at 18.52 and American Axle & Manufacturing Holdings, Inc. at 9.62, indicating that while STRATTEC is not the cheapest option, it is positioned reasonably within its industry. Notably, STRATTEC has outperformed the S&P 500 with a one-year return of 131.27% compared to the index's 10.26%, reinforcing its current valuation stance.