Is Vishay Precision Group, Inc. overvalued or undervalued?

As of 5 August 2025, the valuation grade for Vishay Precision Group, Inc. has moved from attractive to risky, indicating a shift in its perceived value. The company appears to be overvalued, particularly when considering its P/E ratio of 107, which is significantly higher than the industry average, and an EV to EBITDA ratio of 12.88 that suggests elevated valuation compared to peers. Additionally, the ROCE stands at a mere 3.85%, further highlighting the company's struggles in generating returns relative to its capital employed.
In comparison to its peers, Vishay Precision Group, Inc. has a much higher P/E ratio than Methode Electronics, Inc., which has a P/E of -4.10, and RxSight, Inc., which also shows a negative P/E of -11.34. The company's stock has outperformed the S&P 500 over the past week, month, and year, with returns of 4.24%, 19.83%, and 36.90%, respectively, but it lags significantly over longer periods like 3 years and 5 years, where it returned only 2.38% and 31.68% compared to the S&P 500's 70.41% and 96.61%. This discrepancy suggests that while recent performance may seem promising, the overall valuation metrics indicate a concerning outlook for the company's long-term value.