Is UFP Technologies, Inc. overvalued or undervalued?

As of 10 October 2025, the valuation grade for UFP Technologies, Inc. has moved from fair to attractive, indicating a positive shift in its valuation outlook. The company appears to be undervalued, particularly when considering its P/E ratio of 28, which is lower than the peer average of approximately 25.5, and a PEG ratio of 0.78, suggesting that the stock is priced favorably relative to its growth prospects. Additionally, the EV to EBITDA ratio stands at 18.60, which is competitive compared to peers like RPM International, Inc. with an EV to EBITDA of 18.90.
In terms of peer comparison, UFP Technologies, Inc. has a lower P/E ratio than RPM International, Inc. at 25.08 and Axalta Coating Systems Ltd. at 19.81, while maintaining a more attractive PEG ratio than both. Despite recent underperformance with a year-to-date return of -21.75% compared to the S&P 500's 11.41%, the long-term perspective shows a strong 5-year return of 347.74% versus the S&P 500's 88.45%, reinforcing the potential for future upside in its valuation.