Is UFP Technologies, Inc. overvalued or undervalued?

As of 13 June 2025, UFP Technologies, Inc. has moved from a fair to an expensive valuation grade. The company is currently overvalued based on its financial metrics. The P/E ratio stands at 28, which is higher than the industry average of approximately 27.51, while the EV to EBITDA ratio is 21.91, indicating a premium compared to its peers. Additionally, the PEG ratio of 0.78 suggests that the stock may not be justified at its current price level.
In comparison to peers, Montauk Renewables, Inc. is considered very expensive with a P/E of 31.13, but UFP Technologies' higher valuation metrics signal that it is not a favorable investment at this time. The company's recent stock performance has also lagged behind the S&P 500, with a year-to-date return of -4.65% compared to the index's 2.44%. Overall, the combination of high valuation ratios and underperformance relative to the market reinforces the conclusion that UFP Technologies, Inc. is overvalued.