Is Ultralife Corp. overvalued or undervalued?

As of 29 May 2025, Ultralife Corp. has moved from a fair valuation to expensive. The company is currently overvalued, with a P/E ratio of 30, compared to the industry average which is not provided but is indicated to be lower given the peer comparisons. Key ratios include an EV to EBIT of 22.38 and an EV to EBITDA of 15.03, both suggesting a premium valuation relative to earnings.
In comparison to peers, Ultralife Corp. has a P/E ratio of 32.47, which is significantly higher than American Superconductor Corp. at 103.45, indicating a stark contrast in valuation despite American Superconductor's higher earnings multiple. The company's ROCE stands at 5.10% and ROE at 3.95%, which are relatively low, further supporting the notion of overvaluation. Additionally, while Ultralife Corp. has shown strong returns over the past month (54.40%), its one-year performance has lagged behind the S&P 500, which raises concerns about its sustainability at current price levels.