Is Ultralife Corp. overvalued or undervalued?

As of 24 October 2025, the valuation grade for Ultralife Corp. has moved from very expensive to attractive, indicating a significant improvement in its valuation outlook. Based on the current metrics, Ultralife appears to be undervalued. The company has a P/E ratio of 30, which is notably lower than its peer average of approximately 45.18, suggesting that it is trading at a discount relative to its peers. Additionally, its EV to EBITDA ratio stands at 15.03, while the industry average is not provided, but it is lower than the peer average of 14.97, indicating a more favorable valuation.
In comparison to its peers, Ultralife Corp. shows a lower Price to Book Value of 1.19 and an EV to Sales ratio of 1.20, which further supports the argument for its undervaluation. Notably, while Ultralife has experienced negative returns over the past year (-19.00%), it has outperformed the S&P 500 in the past week with a return of 7.92% compared to the index's 1.92%. This recent performance may suggest a potential turnaround for the stock, reinforcing the attractive valuation narrative.