Is STRATTEC Security Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for STRATTEC Security Corp. has moved from attractive to fair. Based on the current metrics, the company appears to be fairly valued. The P/E ratio stands at 19, while the EV to EBITDA ratio is 9.45, and the PEG ratio is notably low at 0.02, indicating potential undervaluation relative to growth expectations.
In comparison to its peers, American Axle & Manufacturing Holdings, Inc. has a more attractive P/E of 9.51, while Cooper-Standard Holdings, Inc. has a P/E of 19.94, suggesting that STRATTEC is positioned in a competitive range but not necessarily leading. Despite recent challenges, STRATTEC has delivered strong returns, with a year-to-date return of 55.80% compared to the S&P 500's 13.30%, reinforcing its relative strength in the market.