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 shift in its perceived value. The company appears to be 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 have a P/E of 11.61 and EVI Industries, Inc. shows a much higher P/E of 33.93, highlighting the relative overvaluation of The Eastern Co.
The company's recent performance has been poor, with a year-to-date return of -19.71%, significantly underperforming the S&P 500's 13.30% return during the same period. This trend of underperformance continues over longer horizons, with a 1-year return of -37.98% compared to the S&P 500's 14.08%. Overall, these factors suggest that The Eastern Co. is overvalued in the current market environment.