Is Ultralife Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Ultralife Corp. has moved from attractive to very expensive, indicating a significant shift in its market perception. The company appears overvalued based on its current financial metrics. Key valuation ratios include a P/E ratio of 30, an EV to EBITDA of 15.03, and a Price to Book Value of 1.19, all of which suggest that the stock is trading at a premium compared to its earnings and asset value.
In comparison to its peers, Ultralife Corp. has a P/E ratio of 45.18, which is notably higher than Allient, Inc. at 128.16 and Solid Power, Inc. which is in a risky category with a negative P/E ratio. This indicates that Ultralife is priced significantly higher relative to its earnings than some of its competitors. Additionally, the company's stock has underperformed against the S&P 500 across multiple time frames, with a year-to-date return of -13.56% compared to the index's 13.30%, reinforcing the notion that the stock may be overvalued.