Is UFP Technologies, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for UFP Technologies, Inc. has moved from attractive to fair, indicating a shift in its perceived value. Based on the current metrics, the company appears to be fairly valued. Key ratios include a P/E ratio of 28, a Price to Book Value of 5.09, and an EV to EBITDA of 18.60, which suggest that while the company is performing well, it may not present a compelling investment opportunity at its current price.
In comparison to its peers, UFP Technologies, Inc. has a lower P/E ratio than CSW Industrials, Inc. at 32.31, but is higher than Axalta Coating Systems Ltd. at 19.81. The PEG ratio of 0.78 indicates that the stock may be undervalued relative to its growth prospects compared to its peers. Despite recent challenges, UFP Technologies has outperformed the S&P 500 over the last three and five years, with returns of 121.89% and 387.22%, respectively, reinforcing the notion that it has the potential for future growth.