Is Turning Point Brands, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Turning Point Brands, Inc. has moved from fair to very expensive, indicating a shift towards overvaluation. The company appears overvalued based on its P/E ratio of 24, which is significantly higher than the peer average, and an EV to EBITDA ratio of 17.82, compared to peers like Vector Group Ltd. at 9.03. Additionally, the PEG ratio stands at 0.86, suggesting that while growth may be factored into the price, it does not sufficiently justify the current valuation.
In comparison to its peers, Turning Point Brands, Inc. has a much higher P/E ratio than Universal Corp., which is at 9.24, and a notably higher EV to EBITDA ratio than both Vector Group Ltd. and Universal Corp. The company's recent stock performance has outpaced the S&P 500, with a year-to-date return of 69.73% compared to the index's 12.22%, reinforcing the perception of overvaluation given the high price relative to earnings and cash flows.