Is The Eastern Co. overvalued or undervalued?

As of 17 October 2025, the valuation grade for The Eastern Co. moved from expensive to very expensive, indicating a significant deterioration in its valuation outlook. The company is overvalued based on its current metrics, with a P/E ratio of 18, a Price to Book Value of 1.73, and an EV to EBITDA of 8.16. In comparison, peers such as Luxfer Holdings Plc exhibit a more attractive P/E ratio of 11.61, while NL Industries, Inc. stands out with a very attractive P/E of 4.86, highlighting the relative overvaluation of The Eastern Co.
The stock has underperformed against the S&P 500 across multiple time frames, with a year-to-date return of -19.71% compared to the S&P 500's 13.30%, and a one-year return of -37.98% against the index's 14.08%. This underperformance reinforces the notion that The Eastern Co. is currently overvalued in the market.