Is Ultra Clean Holdings, Inc. overvalued or undervalued?

As of 28 April 2025, the valuation grade for Ultra Clean Holdings, Inc. has moved from very expensive to expensive. The company is currently considered overvalued. Key ratios include a P/E ratio of 28, an EV to EBITDA of 6.91, and a PEG ratio of 0.12, which suggests that despite the high P/E, the growth prospects may not justify the current valuation.
In comparison with peers, Modine Manufacturing Co. has a P/E of 25.10 and an EV to EBITDA of 14.06, indicating a more favorable valuation relative to its earnings potential. Meanwhile, Enpro, Inc. is also classified as expensive with a P/E of 44.41, highlighting the disparity in valuation among industry peers. Notably, Ultra Clean Holdings has significantly underperformed against the S&P 500, with a year-to-date return of -44.56% compared to the index's 2.44%, reinforcing the notion of its overvaluation.