Is UFP Technologies, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for UFP Technologies, Inc. has moved from attractive to fair, indicating a more cautious outlook on its valuation. 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 to peers, RPM International, Inc. has a P/E of 25.08, while Axalta Coating Systems Ltd. shows a lower P/E of 19.81, suggesting that UFP Technologies is positioned in the middle of its peer group.
Despite its fair valuation, UFP Technologies has underperformed relative to the S&P 500, with a year-to-date return of -21.21% compared to the index's 16.30%. However, the company has shown strong long-term performance, with a 5-year return of 419.81%, significantly outpacing the S&P 500's 109.18%. This mixed performance highlights the need for careful consideration of its current valuation in the context of market trends and peer performance.