A Colonel McCown who was captured and spent several days with Peiper said he had an uncanny resemblance to the actor Ray Milland. Perhaps a bit less chiseled than your model above.
I didn't make the bust I just painted it, yes, he does have a resemblance though. The makers of these in this case Life Miniatures try and deict the person as best they can I guess. One case in figures is tank ace Michael Wittman , there are many figures and busts of him but none that really resemble him. I heard that some Hollywood guy saw Peiper in a newsreel and thought he would make the perfect leading man in movies.
If Germans "had won" 1945 there would have been German Peiper movies like there were John Wayne Movies....