Is UFP Technologies, Inc. overvalued or undervalued?

As of 31 October 2025, UFP Technologies, Inc. has moved from an attractive to a fair valuation grade, indicating a shift in its perceived investment quality. 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, Axalta Coating Systems Ltd. has a P/E of 19.81, while CSW Industrials, Inc. shows a higher P/E of 32.31, suggesting that UFP Technologies is positioned reasonably within its industry.
Despite its fair valuation, UFP Technologies has underperformed recently, with a year-to-date return of -21.21% compared to the S&P 500's positive return of 16.30%. However, over a longer horizon, the company has shown significant growth, with a 5-year return of 419.81%, outperforming the S&P 500's 109.18%. This long-term performance indicates potential for recovery and growth, despite current challenges.