Is Sypris Solutions, Inc. overvalued or undervalued?

As of 16 November 2022, the valuation grade for Sypris Solutions, Inc. moved from expensive to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 2.42, an EV to EBIT of 13.07, and an EV to EBITDA of 7.57, which suggest that the stock may not be justified at its current price level.
In comparison with peers, Cooper-Standard Holdings, Inc. has a P/E ratio of 19.94 and an EV to EBITDA of 7.37, while Holley, Inc. shows a P/E of 21.65 and an EV to EBITDA of 8.38, both indicating a more favorable valuation relative to Sypris. Additionally, Sypris Solutions has shown strong recent performance, with a 1-year return of 45.62% compared to the S&P 500's 17.14%, which highlights its short-term appeal despite the overall valuation concerns.