Is Sturm, Ruger & Co., Inc. overvalued or undervalued?

As of 15 August 2025, the valuation grade for Sturm, Ruger & Co., Inc. has moved from very expensive to fair. Based on the current metrics, the company appears to be fairly valued. The P/E ratio stands at 27, while the EV to EBITDA ratio is 13.39, and the Price to Book Value is 2.60. In comparison, Malibu Boats, Inc., a peer, has a significantly higher P/E ratio of 41.72, indicating that Sturm, Ruger may be a more attractive investment relative to its peer.
In terms of recent performance, Sturm, Ruger has shown a 5.73% return over the past week, outperforming the S&P 500's 1.05% return in the same period. However, over the longer term, the company has underperformed the S&P 500, with a 10-year return of -35.52% compared to the index's 231.64%. This discrepancy suggests a need for caution, despite the current fair valuation.