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. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 28, a Price to Book Value of 5.09, and an EV to EBITDA of 18.60. In comparison, 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 and an EV to EBITDA of 20.45, indicating that UFP Technologies is positioned in the middle of its peers.
Despite a strong 3-year return of 121.89%, the company has underperformed the S&P 500 on a year-to-date basis with a decline of 20.02% compared to the index's gain of 13.30%. This performance, combined with the current valuation ratios, suggests that while UFP Technologies is not undervalued, it may not be the best investment opportunity at this time.