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, indicating a shift in its perceived value. The company appears to be fairly valued based on its current metrics. 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 that the stock may be undervalued relative to its growth prospects.
In comparison to its peers, American Axle & Manufacturing Holdings, Inc. has a more attractive P/E ratio of 9.51, while Cooper-Standard Holdings, Inc. has a P/E of 19.94, indicating that STRATTEC's valuation is in line with some competitors but less favorable than others. Notably, STRATTEC has outperformed the S&P 500 with a year-to-date return of 55.80% compared to the index's 13.30%, reinforcing its strong performance despite the recent grade change.