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. The company appears to be overvalued, with a P/E ratio of 28, which is significantly higher than the peer average of approximately 22.93 for similar companies. Additionally, the EV to EBITDA ratio stands at 18.60, compared to the peer average of 15.12, and the PEG ratio of 0.78 suggests that the stock may not be as undervalued as initially thought.
In comparison to its peers, Axalta Coating Systems Ltd. has a P/E of 19.81 and an EV to EBITDA of 9.89, while CSW Industrials, Inc. shows a higher P/E of 32.31 but a lower EV to EBITDA of 20.45. This indicates that UFP Technologies, Inc. is trading at a premium relative to its industry peers. Despite a strong performance over the long term, with a 5-year return of 387.22% compared to the S&P 500's 91.29%, the recent year-to-date decline of -20.02% against the S&P 500's 13.30% suggests that the stock may be losing momentum.