Is The Eastern Co. overvalued or undervalued?

As of 24 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 overvalued based on its current metrics. Key ratios include a P/E ratio of 18, an EV to EBITDA of 8.16, and a Price to Book Value of 1.73, all of which suggest that the stock is trading at a premium compared to its earnings and asset values.
In comparison to peers, The Eastern Co. has a notably higher P/E ratio of 20.98 compared to Luxfer Holdings Plc at 11.61 and NL Industries, Inc. at 4.86, highlighting its overvaluation relative to industry standards. Furthermore, the company's recent stock performance has been poor, with a year-to-date return of -20.20% compared to the S&P 500's positive return of 15.47%, reinforcing the notion that the stock may not be a sound investment at its current price.